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ATA/DialAmerica Study: Strong Dissatisfaction Creating High Teleservices Churn

October 08, 2008

A high level of dissatisfaction by teleservices clients in how their suppliers handle their customers will likely prompt most to change vendors, according to a disturbing new survey conducted by the American Teleservices Association (ATA).
 
The study, sponsored by DialAmerica, found among 24 major U.S. companies that outsource over $300 million in customer acquisition and customer care, 79 percent of respondents said they were very likely or somewhat likely to change their teleservices outsourcer in the next year. 
 
This high intent to change reflects a finding that only 18 percent of respondents were very satisfied with their most recent outsourced teleservices relationship. The number one concern in assessing the value of outsourced customer care programs – cited by 94 percent – was customer satisfaction.
 
Other key findings include:
 
·    94 percent said outsourcers should have business experience in their industry sector
·    95 percent said that outsourcers must understand the rules and regulations of their industry
·    91 percent said it was important that outsourcers have an impeccable compliance record
·    41 percent said they were very dissatisfied or somewhat dissatisfied with the performance of their offshore teleservices vendor
 
“Businesses expect more from their outsource vendors,” stated Tim Searcy, CEO, American Teleservices Association. “They want outsourcers to fully understand their businesses, operate with complete regulatory compliance and, most importantly, serve customers with the highest degree of care and attention.”
 
Corporations outsource teleservices for a wide variety of reasons, the survey found.  These include lowering costs, reducing staffing, gaining access to skilled teleservices representatives, conducting sales campaigns and providing customer care services. 
 
However, the number one reason to outsource teleservices – cited by 77 percent of respondents – is to enable companies to focus on their core business imperatives.
 
“Companies outsource functions so that they can devote internal resources to their highest priority initiatives,” said Arthur Conway, president and CEO, DialAmerica.  “With teleservices, that typically means entrusting customer relationships to an outside entity – a step businesses will only take if they have complete confidence in the vendor providing an outsourced service.”
 
Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users. Today’s featured white paper is Fixed Service Strategies for Mobile Network Operators, brought to you by Comverse (News - Alert) (News - Alert).
 

Brendan B. Read is TMCnet’s Senior Contributing Editor. To read more of Brendan’s articles, please visit his columnist page.

Edited by Michelle Robart

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