Managing customer service operations in-house can be a burden for your business. If you are currently paying $19/hr to your agent (not including benefits and training costs), then within a year, you are looking at $408,576 for just ONE agent.
Imagine expanding and scaling your operations to, let’s say, 10 agents. That is sure to set you back long before you start making a decent profit.
Over a decade of experience handling and managing customer service operations for my clients in the USA, I have developed some strategies that can help you reduce costs while ensuring that operations remain sustainable.
So, without further ado, let’s begin.
What Strategies Can Help Your Business Reduce Customer Service Costs?
Depending on your business, there can be tons of strategies you can opt for to reduce customer support. I cannot guide you precisely on how to run these steps in your customer support department given I don’t know the real picture of your internal department.
You can have a quick consultancy, though, and I can walk you through the precise steps you can take to reduce customer support costs.
For the general overview, the following are the potential steps you can take to reduce customer support costs.
1. Adopt an Integrated Call Center Solution
Customers choose to interact with a brand through different channels such as email, phone, and social media. Hiring a customer service agent for each channel is a costly choice, which means upwards of $19/hr and does not include benefits. Instead, try an integrated call center solution provider.
Think of this as an all-in-one solution where the agents can see how and when the customer interacts with the channel, and what are the most frequently asked questions.
When interactions are visible in the form of a dashboard, it becomes easier to resolve issues and scale operations.
For example, if a customer wants a refund on his latest purchase and has sent an inquiry through multiple channels. Having an integrated call center solution would allow the agent to count that as one request and not individually.
Learn More: Why You Should Use Integrated Call Solutions [And Why Not]
2. Integrate the Self-Service Option via Explainer Videos
Self-service is a good option for all types of businesses; small and mid-sized businesses can save costs, whereas enterprises can help improve user interaction. If you want to grow your business x2 and streamline communication adopting this approach via interactive videos will help.
Make the videos simple, and guide customers through your website. This will help make the experience much more fun and engaging. This means that your agents can focus more on internal tasks hence utilizing the company’s resources well.
Bonus Tip: you can use tools like ClipChamp and Canva to make free videos.
3. Save 213% by Retaining Your Agents
It’s a fact that hiring new customer service representatives is more costly than retaining existing ones. It’s estimated that a company such as yours would spend more than $4000 and 24 days to fill a vacant position, so you’re losing both time and money.
But how can companies retain top talent without breaking the bank? The solution lies in Learning and Development programs. You want agents to upskill so that they can add more value to the team.
For example, a data annotation specialist can learn customer service and contribute more to the company. This also means they get a pay bump from $19/hr to $23/hr which means they would be making $896 more than they previously did.
4. Save 30% of Employee’s Salary Through AI Chatbots
In a world before ChatGPT, humans were employed for customer service roles, but in recent times, that has changed. With a human support agent, the responses are delayed, and an additional cost for businesses (in terms of training and onboarding).
On the other hand, AI chatbots can help customers answer basic questions and provide assistance on who they can contact for detailed information. From the responses to the kind of tone you want the chatbot to use can all be automated.
Chatbots provide support 24/7, which means that if a customer messages at 3 am or 11 pm, the responses will be consistent. Unlike agents, chatbots don’t have a per-hourly rate, you just need to integrate it with different channels that the customer will use for communication.
Tip: It takes 3 to 6 months to train a customer service agent, with costs exceeding $1000 whereas a standard subscription plan to a chatbot software ranges from $0 to $100/month.
5. Use Interactive Voice Response Technology
Interactive Voice Response is another way technology is used to reduce customer service. It interacts with customers and allows them to perform actions such as placing an order or adding items to the cart. Such actions are based on either your voice or keypad selections.
Imagine if a customer calls and has to wait for 10 minutes before the call is connected, and it’s not even to the relevant department. That’s frustrating. A solution is to implement skill-based routing through IVR.
In this scenario, the customer can choose which department they want to talk to before waiting for their turn. This reduces customer costs and helps improve business processes.
Tip: Implement speech-based IVR, so that agent intervention can be reduced. For example, if you were 10 customer service agents, now you would only need 3 agents to help maintain operations. If one agent costs $19/hour, you would be saving $4,256 every month (given they are doing 8-hour shifts/week).
6. Outsource Customer Service in Just $7/hr
Having a customer service team in-house can be a burden on your company’s internal resources. The average salary of an agent in the USA is $19/hr, and this doesn’t include training and infrastructure costs.
This cost is not negotiated with and is the market standard. However, there is a solution – Outsourcing to HiredSupport
Outsourcing is delegating your customer service tasks to third-party vendors such as HiredSupport. This agency has a Clutch rating of 4.9/5 stars, meaning that businesses trust HiredSupport for all their outsourcing needs. It offers a free trial, helping businesses manage their expectations before committing long-term.
You pay once you are satisfied with the service and it starts at $7/hr.
Here’s a comparison:
| Types of In-House Customer Service | Pricing | Vs | HiredSupport Customer Service | Pricing |
| Average Cost of a Customer Service Agent | $19/hr | Average Cost of a Customer Service Agent | $7/hr | |
| Per Month Salary | $34,048 | Per Month Salary | $1,568 | |
| For 10 Agents | $340,480 | For 10 Agents | 15,680 | |
| Training Costs | $1,000 | Training Costs | Already Trained | |
| Hardware Equipment | 19000+ $6000/year | Hardware Equipment | – | |
| Office Rent (Califonia) | $150,000/year | Office Rent (Califonia) | – |
Top 3 Customer Service Outsourcing Companies
1. HiredSupport
HiredSupport is a customer service company that has its headquarters based in California and virtual agents present across the globe. It was established in 2010. Over the past decade, it has worked with more than 100 clients, serving industries from eCommerce to home improvement.
How does HiredSupport help reduce customer service costs for businesses?
HiredSupport is one of the top-rated customer service outsourcing companies, offering affordable plans starting at just $7/hr. This allows small businesses to get up and running without stretching their budget.
Trusted by companies like Healthy Stuff, FIXD, and Cointree, HiredSupport has boosted customer satisfaction scores by 37% and cut response times by 41%. HiredSupport has been featured in major outlets such as CNN, HubSpot, and Zapier for its quality services.
With a 4.9/5 rating on Clutch, it’s a reliable choice for small businesses in the USA to outsource their tasks to offshore agencies such as HiredSupport.
Does HiredSupport Offer Customer Services?
Yes, HiredSupport offers customer services along with others such as:
- Technical Support
- Back Office Support
- Phone Support
- Email Support
- Help Desk Support
- Data Entry
- Data Annotation
Free Trial and Pricing
HiredSupport’s pricing starts from $7/hr. This makes it the most affordable option on our list. HiredSupport offers a free trial, allowing business owners to make informed investment decisions before making a purchase.
2. Anserve Inc.
Anserve Inc. specializes in providing comprehensive call center solutions tailored to meet diverse business needs. With a focus on customer satisfaction and operational efficiency, Anserve ensures seamless communication solutions for businesses of all sizes.
This call center company uses artificial intelligence to help streamline its customer service and call center operations. The agents are available 24/7 to answer customer queries and ensure that the CSAT scores remain consistent.
Services Offered
- Customer Service
- Inbound and Outbound Call Handling
- Virtual Receptionist Services
Free Trial and Pricing
Anserve Inc. doesn’t disclose its pricing strategy on its website. This call center company doesn’t offer a free trial.
3. Ardem Incorporated
Ardem Incorporated was established in 2004 in New Jersey, USA. This customer service company is committed to providing precise and reliable data management solutions, Ardem has grown to become a trusted partner for businesses across various industries.
Over the years, Ardem has continued to refine its methods, offering actionable insights derived from structured data, which helps businesses make more informed decisions. The company’s track record of success has been reflected in the long-standing relationships it has with its clients across North America.
Services Offered
- Customer Service
- Logistics Data Entry
- Data Processing
- Utilities Data Management
- Appointment Setting
- Virtual Assistant
Free Trial and Pricing
Ardem doesn’t disclose its pricing strategy on the website. This offshore outsourcing company doesn’t offer a free trial.
Conclusion
Out of all the above-mentioned ways to reduce customer service costs, Outsourcing is your best bet. Outsourcing solution providers like HiredSupport can help you save up to $500,000 per year given that you have a team of 10 agents.
This agency offers a 7-day free trial and once you are satisfied with the service, you can start with $7/hr; just like that.
Businesses that worked with HiredSupport have seen a 37% increase in their CSAT score and a 36% in Customer Lifetime Value, cementing their solid reputation in the market.
You can also request a quote from their sales team (1 (800) 655-5891, email: [email protected]) to measure how much you can save by outsourcing to HiredSupport.
