Why you should consider outsourcing your collections
The global market value for outsourcing customer service is set to reach almost $82 billion in 2022, as more companies realise that they don’t need in-house customer service teams to provide great customer experiences.
Outsourced and in-house collection teams are a vital customer touchpoint and an essential part of the overall customer experience. The quality of the collection experience will impact how customers perceive a brand.
In this article, we’ll look at some of the main reasons why companies should consider outsourcing their collections. Outsourcing is a great way to make a workforce more flexible, and can solve business challenges like a lack of skilled advisors or a low return on investment in debt collection.
4 reasons to consider outsourcing the collections process
1. Access to the best advisors
Recruitment is a huge challenge for companies across the UK. There are a number of different factors contributing to the recruitment crisis:
- Changing employee expectations: As well as popularising remote working, the COVID-19 pandemic has increased employees’ awareness of their value. Many are leaving roles if an employer cannot offer appropriate pay or benefits like remote working. However, employers who cannot afford to provide these are struggling to hire replacement staff.
- Brexit: The Trade and Co-operation Agreement came into force in January 2021, but businesses are still struggling to deal with its effects. One key point was the end of freedom of movement, which has led to severe recruitment issues in industries like hospitality and warehousing, where 12% and 25% of staff are EU nationals.
- Pre-existing challenges: Many of the factors causing the recruitment crisis are existing issues that have always made finding new employees difficult, such as a lack of qualified candidates; weaknesses in an employer’s brand; or ineffective candidate outreach.
As debt collection is a challenging job, it requires the right staff and specialist training. However, it’s hard to find skilled people who have the right level of experience. Outsourcing to companies could be your best bet for accessing talented staff for your collections team.
Companies like Sigma Connected avoid the UK recruitment problem by using offshore contact centres. The company provides an employment opportunity in countries such as South Africa (where unemployment has been as high as 34.4% in 2021) and trains the advisors to a very high standard. Should clients prefer UK-based staff, Sigma offers national work from home allowing clients access to advisors from across the UK instead.
2. Maintain complete control over collections
55% of customers expect better levels of customer service than they did just one year ago. With mounting levels of pressure, it’s easy to see why some companies may be cautious of outsourcing: they want to maintain control over the customer experience, as a means of protecting their reputation.
However, outsourcing doesn’t mean that business leaders lose control over their collections processes. If companies choose their outsourcing partners carefully, they’ll have access to a team that fits seamlessly within their operations and acts as an extension of the team. Outsourcing collections to an expert in customer interactions means that their staff will keep the business’ values at the core of everything they do.
3. Greater return on investment
For 71% of UK businesses, cost reductions are the main motivation behind outsourcing. When a company keeps its collections team in-house, its directors have to consider recruitment and training costs per person. These expenses can quickly add up if the company has a high turnover rate.
Since the outsourcing partner will typically have a highly-trained and dedicated team, their collections rates will be better than that of an in-house team. Thus, outsourcing collections can both minimise costs and increase revenue for a company.
4. Satisfied customers
An overwhelming 96% of customers say customer service plays a key role in their choice of, and loyalty to, a brand.
As a result, any collections team has to know how to provide great service to a variety of different customers, no matter how sensitive or difficult the situation is. A business cannot rely on inexperienced, lightly trained staff to deliver the level of service that today’s customers have come to expect.
By outsourcing, an organisation can guarantee it will have the right people. Furthermore, with an outsourced workforce a business can scale as required — and having a more agile team means that you’ll be able to handle any volume of customer queries at any time. As debt continues to increase in 2022, companies need to consider how they can ramp up their teams effectively.
Outsourcing helps businesses overcome their biggest challenges
In order for businesses to beat the challenges brought on by the pandemic and recruitment crisis, they could consider outsourcing to a customer interactions specialist. Outsourcing allows access to staff that may not be available through traditional means. In fact, 46% of companies say that outsourcing enables them to acquire skill sets that are inaccessible internally.
Even if an organisation is not currently dealing with recruitment problems, outsourcing can help them scale their operation as it grows. More staff means shorter wait times, which means happier customers and a better reputation.
Find the collections experts you need in Sigma Connected
At Sigma Connected, we know that debt collection can be a tricky situation. We’re here to provide expert staff that can complete collections on behalf of you and your company.
To ensure your collections are resolved correctly, we’ll work with you to create a bespoke solution that matches your requirements. We’re always working to improve our services, updating staff training wherever it’s possible. Sigma Connected teams are focused on being empathetic and are experts in handling vulnerable customers with sensitivity.
Want to learn more about our services? Contact us today