In the internet age, customer service is vital to a company’s success. Businesses know the impact of social media on their brands—one bad review or viral post is enough to affect a business’ profitability. Companies also know that customers have a wealth of choices today; one wrong move is enough for a competitor to swoop in and take subscribers or customers. It is why they have to nurture relationships with their base.
Although customer service is crucial to brand success, many businesses outsource it instead of having an in-house team or department for it. One of the most popular countries for outsourcing is the Philippines. Keep reading to learn more about the benefits of outsourcing staffing and why you should choose this country as the base for your brand’s customer service.
When a business creates an in-house customer service team, it will have to account for increased payroll, benefits, and utility expenses. The company would also need to upgrade its internet bandwidth to accommodate a customer care team’s infrastructure. If you outsource customer support, you can contract a third-party provider responsible for the salaries, benefits, and other costs of business that you will incur.
Another benefit to outsourcing is that you’ll improve the quality of work. Since customer service is likely not your company’s specialty, if you keep this function in-house, you will have to train your employees and acquire resources so they can provide customer support services properly. If you outsource, though, you can hire a company that specializes in customer service.
A customer service company would have invested resources in infrastructure, training, and development to help them run customer support services in the best possible way. When you delegate on a large scale like this, you can realign your focus on your primary enterprise.
The Philippines has been the top choice for business process outsourcing (BPO) since 2014. Today, the country has over 1.1 million call center agents. The local BPO market was valued at US$187.91 billion in 2018, and it is expected to reach US$314.81 billion by 2025. Undoubtedly, the Philippines has established itself as a leader in business process outsourcing, specifically customer service—here are five reasons why.
The Philippines has one of the highest literacy rates in the world. In 2019, the Philippine Statistics Authority reported that the country’s literacy rate is at 91.6 percent, which is remarkable for a newly-industrialized nation with a population of more than 110 million. The government’s Department of Education has consistently introduced programs like night school and alternative learning systems for out-of-school youth.
The Philippines’ national language is Filipino, and it is home to more than 100 dialects and regional languages. However, the country uses English as its primary medium of instruction in schools and businesses. In 2020, language-training company Education First ranked the Philippines 27th out of 100 countries in English proficiency.
Education First also reports that the Philippines has the second-highest score for English proficiency in Asia, after Singapore. They based their report on test results of 2.2 million adults across the 100 participating countries and regions. Outsourcing staffing to the Philippines means gaining access to customer service professionals who wouldn’t need extensive training or refresher courses in business English.
Filipino culture is a melting pot of different mores and values. Most of its traditions come from having been a colony of Spain for 300 years. Then, it became a colony of the United States for 50 years, before becoming Japanese-occupied territories for three years during World War II. For a short period, the Dutch also had a predominant presence in the Philippines.
Besides influences from being a colony, the country is also a significant trading partner of its Asian neighbors. Since it is an archipelago, the Philippines is along significant sea routes and has historical and economic ties with the ASEAN countries and most of East Asia.
Filipino employees are hardworking and have a great attitude toward work. Generally speaking, they are well-mannered and have close family ties. The country is also deeply spiritual, with most of the population practicing a religion. Around 81 percent are Catholics, and many of the people’s values have roots in Catholic teaching.
More often than not, when you hire a Filipino, you will get someone with grace under pressure. Whether facing angry customers, addressing long queues, or solving complex customer support issues, you can count on a Filipino customer service representative to treat people respectfully and courteously.
According to salary aggregator Payscale, the average wage rate for Philippine call center agents is US$1.75 per hour. Meanwhile, average rates in Australia, North America, and Canada are approximately US$16 to US$20 per hour. Customer service supervisors and managers in the Philippines have an hourly rate of US$3.50 to US$7, well below what you would expect to spend in developed countries. You can even hire complete outsourcing services for US$9 to US$12 per hour—that includes benefits, payroll, utilities, primary and secondary Internet services, and contingencies. When you outsource customer support services to the Philippines, you save a significant amount of money. You also know that you’re getting value for your money since you know you’ll have someone who won’t let your brand down.
It takes more to render customer service than just having the skills for achieving metrics and benchmarks. A successful call center agent or customer support team member will have the attitude and personality fit for helping customers resolve their concerns within a given timeframe. If you outsource staffing to the Philippines, you’ll certainly get that!
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