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Finding the Balance: The Effect of Offshore Customer Contact on Profit and Brand

ContactBabel, May 2004, Pages: 105


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The report contains results of interviews with 1,008 UK adults, analysing their knowledge, attitudes, experience and reactions towards the offshoring of customer contact. From interviews carried out by top market research company ICM Research, the report looks in depth at what customers are thinking – and, more importantly, doing – about companies which offshore their customer service or sales functions.

The results are segmented by customer gender, age, socio-economic group and region to provide businesses with clear and actionable information about how separate elements of their customer base are acting.

Implications for insurers, banks, airlines, credit card companies, telcos and utilities companies are detailed, along with examples of how offshoring is financially affecting each type of business, for better or worse. The report also gives clear and urgent recommendations on how to make offshore customer contact more profitable for your business and more popular with your customers.

“Finding the Balance: The Effect of Offshore Customer Contact on Profit and Brand” explains
- how aware customers are of offshoring
- attitudes to companies who have offshored customer contact
- offshore-related customer defection rates by industry
- effects of supplier change on offshore cost savings
- how to make offshoring profitable and popular

Key report findings
- 74% of the UK customers who have personally experienced offshore customer contact, now feel more negative towards the company providing it than before

- Customers who have experienced offshore customer contact are 4½ times more likely to have changed their supplier than customers who have had no direct experience of offshoring

- 42% of customers are less interested in sales calls when they come from outside the UK

- Last year, 7.3% of the UK public changed suppliers based on the previous company’s use of offshore contact centres

- UK telecoms and insurance companies experienced the greatest levels of offshore-related customer defection

- Scottish customers are most likely to have changed supplier because of offshore customer service




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