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Do you know how much you save with Outbound Telemarketing Services?
We entrepreneurs talk about outbound telemarketing, the first thing that comes into their mind is extrinsic values. Tangible items, such as infrastructure and labor costs.
However, there are a lot of things you should know about savings before getting an outsourced telemarketing services provider.
In this article, we will discuss why telemarketing call center intrinsic value is as important or more important than its extrinsic value.
Intrinsic Versus Extrinsic Value in BPOs
When we say intrinsic and extrinsic, we refer to tangible and intangible things that affect business decisions.
- Extrinsic refers to all external factors such as money, equipment, and infrastructure. In a nutshell, these are tangible things.
- Intrinsic value, on the other hand, refers to internal factors such as performance, behavior, and purpose.
In choosing a telemarketing outsourcing services provider, it is important to get the best price out of the plethora of telemarketing firms. To do that, businesses take into careful consideration and examination of these components:
- Services Offered
- Technology
- Number of People
- Location
- Revenue
- Infrastructure
- Employees
Whichever company can provide the best offer will, most likely, be the number one option for SMEs.
Though, if we look closely, not everything is all about tangible things. Intrinsic attributes of the company matter as well. These are:
- Experience
- Goal and Objective
- Scalability
- Adaptability
- Flexibility
- Fluency
- Empathy
- Customer Centrality
Intrinsic values come in the form of KPIs and performance benchmarks. Meaning that a telemarketing services provider that performs well can help you save more.
These are factors that businesses often disregard, but in hindsight, they are crucial to achieving success.
Additionally, they dictate how much money you can save by getting a BPO partner.
Want to know what I mean?
How Much Money Are You Saving?
It turns out, you are saving more money than you realized.
We have broken down below the internal factors that can help you save precious resources:
| Factors (KPIs) | What | Amount You Saved/Lost |
| Average Handle Time (AHT) | This is the elapsed time between when an agent answers a call and when the agent disconnects with them. | The average cost per outbound telemarketing call in the Philippines is $6/hour, and the average call per agent is around 70.
This means that with a good AHT, you can take in 10 or more calls, giving you a savings of $13-14 per agent. |
| First Call Resolution (FCR) | FCR is the percentage of calls where the agent completely addresses the caller’s needs without transferring, escalating, or returning the call.
From the word itself, it means resolving an issue on first contact. |
A telemarketing outsourcing company with good FCR helps save time.
In the business world, time means money. If the average handle time for a customer is 15 minutes on the first call and ten on the second, a repeat call rate of 10% would mean over an hour and a half of extra time and labor used per 100 calls. This translates into six fewer customers being handled per 100 customer service calls. |
| Customer Satisfaction (CSat) | Customer satisfaction scores are typically calculated by conducting customer surveys and obtaining quality assurance measurements at call centers.
It describes how good a company is in serving their customers |
Did you know, that acquiring a new customer can cost five times more than retaining one?
If you earn $2,000/annually per customer, if it costs $500 to get them, and if customers have a 10-year lifespan; poor service can ultimately cost you $19,500 (2000*10-500). You can lose up to 95% of potential earnings per customer. |
| Agent Turnover Rate | Agent Turnover Rate refers to employees who resigned or those who opted to work for other businesses. | Unfortunately, it’s very difficult to pinpoint a precise cost for hiring a new employee.
However, in a study by the National Association of Colleges and Employers, hiring an employee in a company with 0-500 people costs an average of $7,645. Society for Human Resource Management states that the average cost to hire an employee is $4,129, with around 42 days to fill a position. |
Conclusion
By evaluating the numbers presented above, you can potentially save millions (if not hundreds of thousands) of dollars per year. This is only possible if you pay attention to the intrinsic value of your telemarketing service provider.
This is also on top of the usual savings you get from outsourcing.
In essence, measuring call center KPIs prior to partnering with them yields only positive results.
Any manager looking to improve business performance and save money should prioritize customer satisfaction, agent effectiveness, and call center efficiency.
In this way, you will be able to assess how much is the real amount you can save with an outbound telemarketing service provider.
Partner With the Best Outbound Telemarketing Company
Magellan Solutions is the leading SME-focused organization among telemarketing companies in the Philippines.
With over 18 years of industry experience, we offer high-quality customer support and call center services. On top of that, we are a certified ISO 27001:2013 and HIPAA-compliant company.
At Magellan Solutions, we combine technology such as ACD, CRM, and IVR with agent skills. We ensure they have all the necessary tools, equipment, and knowledge to serve customers.
We believe that progress shouldn’t break the bank, so our services remain flexible and competitive.
Contact us now, and we will discuss with you how we can help your business succeed. Complete the contact form below and talk to us for free!
