Customer Service Staffing Calculations – How to Tell What’s Right for Your Business

Customer service is a massive part of any business and its finances. Harvard Business Review estimates that it costs anywhere from 5% to 25% more to gain a new customer than to retain an old one.

Once a business acquires a customer, keeping them happy while using a company’s products or services is essential.

Top-tier customer service is also a marketing tool. In our digital world, where customers have access to a high volume of options, word of mouth is a powerful and popular way for users to filter through the chaos of options.

The importance of customer service is evident, but what is the best way to provide it? Growing a customer service team in-house is always an option, but outsourcing is becoming more popular in the US. There are many things to consider when outlining the structure of a business’s ideal customer service.

The main reason businesses outsource labor is that it benefits the bottom line. As companies become location agnostic through improved technology, it’s a clear opportunity to capitalize on cheaper labor outside the US.

The United States – $26/Hr
Eastern Europe – $10-$22/Hr
The Philippines – $8-$14/Hr
India and Pakistan – $5-$11/Hr

Depending on the size and scale of the business, the compounded savings can be extensive.

The United States – $520,000
Eastern Europe – $200,000-$440,000
The Philipenes – $160,000-$280,000
India and Pakistan – $100,000-$220,000

When comparing costs, outsourcing to India or Pakistan looks like an obvious choice, but there is more to consider.

(*Metrics estimate a ten-person team working 40-hour weeks for 50 weeks of the year. Calculations do not include other staffing expenses or 24/7 coverage.)

Not all customer service is equal, and there are possible complications in using outsourced customer service reps. This article outlines some common issues in this area, but simplified, the struggles are often organizational and management issues, language barriers, and security breaches.

Consumers today have high expectations for their customer services. Large companies and brands with ample funds can provide conveniences that weren’t available before, like 24/7 customer service, which was uncommon a decade ago, but is normalized now.

Systemic poor customer service can negatively affect a company and its brand. Digital rating systems are easily accessible to customers and can negatively impact brand trust and sales.

Some companies have a humanitarian motivation in how they do their business, which could be genuine and altruistic, or it could simply be to avoid scandalous news headlines. Either way, hiring and putting money toward a staffing solution that does not humanely treat workers is never okay.

Companies must overcome this possible barrier to outsourcing as they find a vendor and vet how that vendor treats and pays their employees.

We know the costs/benefits of outsourcing at Support Zebra, and we have developed an ideal solution for iconic SaaS and eCommerce companies looking to outsource their customer service.

As with most outsourced options, our customer service is an excellent way for businesses to save on staffing costs. 

Our team is Philippines-based, and there are many reasons the Philippines is a great, cost-effective location for outsourcing customer service. 

The extensive business culture in the Philippines encourages outsourcing to US companies. Since outsourcing is a huge part of the economy, the government works hard to support it by providing tax incentives that contribute to the country’s ability to be a cost-effective competitor in this sphere. 

There is a lower cost of living in the country and a high quality of life.

We know the costs/benefits of outsourcing at Support Zebra, and we have developed an ideal solution for iconic SaaS and eCommerce companies looking to outsource their customer service.

When working with our team at Support Zebra, companies can expect to not only to maintain their US-based customer service metrics, but to improve them. This is an uncommon expectation for outsourcing. 

We have an elite team of reps and managers and a proven system of accountability and improvement we’ve worked hard to perfect over the years.  

We understand the value of excellent customer service and exceed our client’s expectations.

For an example of our efficacy, click here to see some well-known clients who trust us with their customer service and brand reputation.

We treat our employees exceptionally well at Support Zebra, and we maintain a Silicon Valley-level work environment that would rival many US companies. We believe that providing a first-rate work environment is not only the right thing to do, but it allows our employees to thrive in their work and provide better support for our clients. 

Companies doing extensive quantitative analysis on their customer support staffing needs can use a tool called an Erlang Calculator. A mathematician, AK Erlang, devised this calculation in 1917, and it is still helpful today to estimate the amount of customer service reps specific call centers need. 

The inputs one needs to complete the calculations are the following: 

The SLA percentage is the number of calls answered in a given period divided by the number of calls answered times 100. The ideal is to be as close to 100% as possible. Click here for an explanation of this metric.

The time period used for this estimation.

This is the number of calls estimated for each hour. A day average will work best to avoid high and low traffic times affecting the metric.

This stands for average handle time or the amount of time reps spend with the average customer.

This is the longest amount of time customers should spend on hold, and the ideal would be zero.

Here is an easy-to-use Erlang calculator.

Our team at Support Zebra is always available to help with any questions about outsourcing for your business. If you’re researching outsourcing options, we’d be happy to explain our process and what to look out for.