The ever-evolving nature of technology creates new opportunities and ways of working. But the decision to embrace a new innovation should be carefully considered. I sometimes think that there is an unstated belief that new technology-related innovation is inherently good. When a new development materializes, there seems to be no shortage of champions or industry boosterism.
In my way of thinking, technology bandwagons can be questionable vehicles to meaningful progress, and I think it's prudent to look at where they're headed before jumping on. To me, there's nothing harmful about tempering initial enthusiasm with a dose of cautious optimism or even healthy skepticism. After all, high-tech solutions are of little value when they don't work as intended, especially when a low-tech solution may be more reliable and suitable.
Outsourced customer service, in its various forms, is one particular bandwagon that's fair game for reconsideration. It's a hot item for the insurance industry right now. It's also a relevant Sounding Line topic because it relies on technology-based solutions that are often used in conjunction with the Internet. Agencies and companies already have enough to do and, for some, outsourced customer service - which typically involves 'round-the-clock call center support and a link from your Web site — looks deliciously tempting. After all, isn't this the level of service customers have come expect and want from insurance proviers? Industry studies seem to suggest so.
For me, however, several recent service experiences raise some question marks about how well outsourced customer service is being delivered. Perhaps industry players ought to think twice before they outsource their customer service activities to a third party provider.
Several disappointing service experiences
Service plan and billing snafu: Several months ago I modified my cellular phone service. The initial interaction with the customer service representative went smoothly and the change in service was expedited. Shortly after the change in service was made and the phone call ended, I discovered and that I misread one of the service features. I immediately called back with the objective of restoring my service to the original plan. Suffice it to say that after several billing cycles and multiple attempts to correct the situation, I am being over-billed. I never get to speak to the same person, despite the CSR's willingness to provide his/her name.
Incidentally, it just so happens that my cellular provider outsources its customer service activities to the same large call center operation that was casually mentioned in a previous issue of Sounding Line.
Verbal communication barrier: In another example, I've had recent need to contact several different tech support help desks. In most cases I've been favorably impressed with the knowledge displayed and solution provided by the people I've talked with. That is, to the extent I've been able to understand their verbal communication through sometimes-thick foreign accents. Outsourcing to overseas tech companies is on the increase. Personally, I don't care who solves my problem. I just want to be able to understand them. It seems to me that a prerequisite to effective customer service and satisfaction is good communication, including the ability to clearly speak the language of the service requestor.
Slow boat to failed service: In yet another example, I used a Web site's e-mail ordering form to request specific additional information. Based on the type of business and other clues, I surmised that a third party maintained the Web site and service center instead of the company's internal staff. A month went by without receiving the information I requested. I sent another e-mail, this time a free-form e-mail to a different department in which I explained that my previous request went unheeded. When I tried to submit the e-mail, I received a JavaScript error — on seven attempts over a four-day period! Finally, I resorted to calling the company's toll-free number and talked to a marginally helpful real person. I'm still waiting to receive the information I requested over two months ago.
It's in the can: Finally, in a different e-mail communication with another large, well-known company, the reply I received (though seemingly from a real person) seemed somewhat "canned" and side stepped my question. I suspect that the e-mail was written by a third-party source that is not empowered to answer certain kinds of questions.
I can't believe that these four incidents are isolated. Even I don't have that bad of luck. I suspect that similar situations are everyday occurrences across the vast spectrum of customer service activities. But these four examples are connected by three important distinctions: they 1) involve outsourcing, 2) depend on technology, and 3) presumably focus on customer service. Oh yes, these examples are also related because the expected level of customer service fell far short of expectations. Hmm, I wonder if the companies that outsource their customer service really know what kind of service is actually being provided on their behalf and what their customers think of it.
Understand the potential ramifications. If you outsource customer service to somebody else and they do a poor job, it could reflect negatively on your business and jeopardize your relationships with customers. You can observe and control how your own agency employees provide customer service. Your ability to observe and control the conduct of an outsource's employees located hundreds of miles away is another matter — you can't.
Rethinking the outsource option
While not a total solution, let me offer five suggestions for rethinking the decision to outsource customer service. I want to emphasize that I'm not opposed to outsourced customer service; rather, I'm opposed to inadequate or failed service regardless of how it's provided. In my opinion, outsourced customer service has a long way to go before it will convince me that it's a preferred service vehicle for insurance agents. Moreover, if customer service doesn't improve generally, outsourced or otherwise, the service management revolution of 10 to 15 years ago will have achieved little success. And remember, the adequacy of the service rendered is not something the provider gets to define. Ultimately, the customer determines the quality of the service experience.
In summary, let's put the outsourced customer service option into another perspective. Despite potential benefits, to what extent do you want to pay somebody else to represent your agency or company in a situation where you have little control over the quality of someone's service performance? It's your reputation at stake. If you decide to implement this service alternative, be prepared to frequently monitor, evaluate, and manage — over and over again.
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