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Table of Contents
Introduction
Looking to retain customers? While incredible products and competitive prices help, studies show that high-quality customer care makes people 3.5x more likely to return. Whether scaling up or turning one-time buyers into loyal patrons, exceptional service is key. In this article, we’ll explore what contact centers are, who should use them, their benefits and how to choose the right one for your business.
Key Takeaways
- Understanding contact centers: Contact centers manage customer interactions across multiple channels (voice, SMS, email, social media) and use advanced technology to streamline processes and enhance customer experience.
- Benefits for businesses: Contact centers improve brand consistency, drive sales growth, provide a competitive edge and enhance customer retention and satisfaction through omnichannel support and efficient service.
- Types of contact centers: Options include outsourced, inbound, outbound, multichannel, omnichannel, on-premises and virtual/cloud centers, each offering different advantages depending on business needs.
- Cost considerations: Contact center costs vary by location and service model — onshore, nearshore and offshore options offer different price points, with costs generally ranging from $6 to $30 per hour or $0.98 to $1.75 per minute.
What is a contact center?
A contact center is a team within your organization that manages customer experiences and interactions. While a traditional call center only handles voice calls, a contact center can handle interactions from a variety of channels, such as voice, SMS, web chat, social media, email and more.
Contact centers also implement modern technological solutions to interact with customers, streamline customer experiences, track customer data and communications and measure and analyze performance and valuable KPIs.
Depending on your needs and goals as a business, contact centers can either be managed and staffed internally or outsourced to an external agency.
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What is the difference between a call center and a contact center?
Perhaps you’ve also considered using a call center or currently have one and are wondering if it’s worth it to transition to a contact center for your business.
When considering which is right for you or if you should transition to the contact center industry, it’s essential to understand the differences between a call center and a contact center.
| Call Centers | Contact Centers |
| Traditional customer service focuses on voice calls | More holistic and robust customer support experience |
| Provides customer support via phone | Provides omnichannel support for a seamless customer experience |
| Can be both inbound and outbound and may provide some multi-channel support | Uses modern technology and processes to streamline systems, improve operational efficiency and strengthen customer engagement |
A call center is a traditional solution that provides customer support via voice calls. Call centers can provide both inbound and outbound support; however, this support typically begins and ends with phone services.
A contact center provides more robust customer support across many channels, including voice, text, web chat, email, social media and more. Contact centers also have technological solutions to streamline systems and operations, provide quicker and more optimized customer support and strengthen customer engagement.
Contact centers vs. call centers: Which is better?
Now that we know what a contact center is, how do they differ from traditional call centers?
In the past, call centers were reasonable solutions. They allowed businesses to provide real-time support to customers through a primary means of communication: a simple phone call. However, in today’s world, phone calls are no longer a primary means of communication, nor are they the fastest means of support.
Modern customers require modern solutions.
Customers now want to be able to reach your business whenever and wherever they are and find accurate and quick help. Whether that’s sending you a direct message on social media when they see a post from your company to ask about a new product, emailing you to initiate a return or reaching out via web chat about your store location closest to them, customers expect an omnichannel approach that anticipates their needs and streamlines their experience.
Contact centers — especially omnichannel contact centers — have the technology and processes to provide exceptional customer support for today’s modern consumers.
Types of contact centers
While we know the contact center definition now, it’s important to note that not all contact centers are created equal. There are various contact center organizational structures and methods, each with differing benefits and drawbacks. Before you decide which is right for your business, take a look at some of the different types of contact centers.
Outsourced contact centers
Hiring and managing a full contact center internally can be a big (and expensive!) task — which is why many successful businesses work with outsourced contact centers. Outsourced contact centers have many benefits, including providing technology and systems to your business to improve handle time and increase sales, managing the support team externally and more.
Inbound
Inbound contact centers specialize in managing and responding to incoming customer communications. They are dedicated to providing high-quality customer service and support and addressing customer inquiries or issues.
Outbound
Outbound contact centers are dedicated to proactively reaching out to customers and potential clients. Their primary functions include conducting sales calls, telemarketing activities, and follow-up calls. These centers are crucial in initiating and maintaining communication between businesses and their target audiences.
We’ve never been more connected—which also means that customers have never had more options in (or expected more from) the consumer services industry.
Consumer services businesses benefit from a contact center to drive sales support, retention and top-notch customer service to drive your brand. In a world with nearly unlimited options and high customer expectations, a contact center makes sure that your consumer services truly do provide the best service.
Multichannel
A multichannel contact center, as the name suggests, can handle many channels, from email to social media to voice calls, text messages and more. However, despite being able to monitor many channels, a multichannel contact center often doesn’t implement technology to streamline each of these channels across the team. This can often mean a disjointed experience for the customer, especially if they reach out multiple times and speak to a different associate each time.
Omnichannel
An omnichannel contact center, like a multichannel contact center, can handle many different channels. However, the key difference is that while a multichannel contact center handles various channels separately, an omnichannel contact center integrates these channels seamlessly. This integration ensures a unified and consistent customer experience across all touchpoints.
On-premises
On-premises contact centers are customer service facilities within your company’s physical premises. These centers give businesses direct oversight and control over their customer service operations. However, they typically demand substantial investment in infrastructure and ongoing maintenance to ensure smooth and efficient functioning.
Virtual/Cloud
Virtual or cloud contact centers are centralized hubs operating remotely using cloud-based technology to handle customer inquiries and communications. This modern approach offers businesses flexibility, scalability and reduced infrastructure costs. Cloud-based technology allows easier access to customer data and communication channels, making it a popular choice for companies looking to streamline their customer service operations.
Examples of contact center services
Contact centers offer a wide range of services to meet the diverse needs of businesses and their customers. Here are some common examples of services provided by contact centers:
Customer support
Customer support services are the backbone of many contact centers. They’re also the heart and soul of these operations. From answering inquiries to solving problems and offering product insights, customer support teams are dedicated to top-notch assistance. Great customer support resolves issues, boosts satisfaction and builds customer loyalty.
Technical support
Technical support services focus on resolving technical issues customers may encounter with products or services. These services often require specialized knowledge and expertise to troubleshoot problems, offer solutions and guide customers through complex processes.
Sales and telemarketing
Sales and telemarketing services are all about proactive and engaging communication with potential customers. Contact center agents take the lead by making outbound calls to showcase exciting products, gather valuable feedback through surveys and spark new leads. These services are crucial in boosting sales and broadening the customer base.
Order processing
Order processing services make buying a breeze for customers. Dedicated agents take care of everything from placing orders to tracking shipments and handling returns or exchanges. With efficient order processing, customers enjoy a seamless and satisfying buying experience.
Help desk
Help desk services provide support for internal and external IT-related issues. Contact center agents assist with software installations, network problems and other technical issues. A well-managed help desk minimizes downtime and enhances productivity.
Customer retention
Customer retention services are all about nurturing and enhancing connections with valued customers. Agents should go the extra mile with personalized follow-up calls, exclusive loyalty programs and dedicated support to draw customers back.
Live chat support
Live chat support services offer real-time assistance to customers via website chat features. This service is convenient for people seeking quick answers without making a phone call and enhances the overall user experience.
Multilingual support
Multilingual support services cater to customers who speak different languages. Providing support in multiple languages helps businesses reach a broader audience and deliver personalized service to non-English-speaking customers.
Data analysis and reporting
Data analysis and reporting services involve collecting and analyzing customer data to gain insights into behavior and preferences. This information helps businesses make informed decisions and improve their products, services and customer interactions.
By leveraging these diverse contact center services, businesses can enhance customer satisfaction, streamline operations, and drive growth.
What are the benefits of a contact center?
When it comes to the customer experience, the benefits of a contact center are obvious: better customer service, a streamlined experience, quicker resolution and handle time and more. However, there are also many benefits of a contact center for your business:
- Improved brand consistency and messaging: A contact center keeps your brand’s messaging consistent across all channels and customer communications, strengthening your brand identity.
- Increased sales and growth: Contact centers can drive sales and contribute to business growth by providing excellent customer service and support.
- Competitive advantage: Excellent customer service can set your business apart from competitors, giving you a significant edge in the market.
- Improved customer retention, loyalty and satisfaction: Satisfied customers are likelier to remain loyal and make repeat purchases, enhancing customer retention and overall satisfaction.
- Omnichannel communication strategy: Contact centers can implement an omnichannel communication strategy for a seamless and integrated customer experience across various channels.
- Cost savings: Contact centers can save your team money by improving efficiency and reducing the need for extensive internal resources.
- Enhanced KPIs and metrics: With a contact center, you can track and improve key performance indicators (KPIs) and metrics, keeping your customer service top-notch.
Let’s dive into two of the biggest benefits of using a contact center.
Improve customer experiences
Today’s customers have grown to expect omnichannel presences, lightning-fast response time and effortless resolutions from businesses. You can create a loyal customer if you nail the customer service experience.
On the flip side, 32% of all U.S. customers would walk away from a brand they loved after just one bad customer experience. After a few bad experiences? 59% of customers would stop shopping with the brand.
A customer-obsessed and digitally integrated contact center like Global Response can provide outstanding customer support every time, no matter how the customer decides to reach out. Creating a frictionless experience for the customer is one of the main purposes of a contact center — and it improves customer experience, satisfaction and retention.
Increase sales and growth
A happy customer is a loyal customer.
And customer service matters more than you might think. 65% of US customers say that a positive experience with a brand is more influential than great advertising, and 73% say that their experiences with a brand are as important as price and product quality when making purchasing decisions.
Many brands outsource customer service to a low-budget call center. This is certainly a cost to the bottom line, but it’s not an investment. Investing in high-quality contact center services with a growth strategy for your business can not only improve customer experience and brand loyalty but also provide meaningful sales growth.
In the first year FILA worked with Global Response, they saw a 25% growth in online sales!
Who should use contact center services?
Knowing what a contact center is is great, but how do you know if it’s right for your business? While almost any business or brand trying to improve customer service and distinguish itself as competitive and customer-focused can benefit from a call center, a few industries, in particular, can benefit from the services a contact center provides.
Customers today have more options than ever.
They can shop anywhere, anytime and for almost any product. The way to stand out? Superior customer service and a seamless customer experience. A contact center can provide a solution to scale up your team without ballooning overhead, provide consistent brand messaging across every channel and support your customers no matter how they reach out.
Healthcare is a highly emotional industry — and one where it’s hard to deliver exceptional care at scale.
In an industry where burnout is high, contact centers allow healthcare industry professionals to scale their teams without encountering huge costs. A contact center supports your immediate team while providing the warm human touch necessary to care for your clients, state-of-the-art technology and systems and a smooth and safe experience for your customers.
Traditional banking is a thing of the past, which means that customer services and experiences must also be updated.
Today, consumers expect speed, convenience and seamless support from their banks and financial institutions while still requiring the same security and protection they could expect from brick-and-mortar banks. A contact center provides seamless support for customers’ banking needs, no matter where they are, and provides digital solutions and cybersecurity while still providing the human touch consumers crave.
We’ve never been more connected — which also means customers have never had more options in (or expected more from) the consumer services industry.
Consumer services businesses can benefit from a customer contact center that drives sales support, retention and top-notch customer service for brands. In a world with nearly unlimited options and high customer expectations, a contact center makes sure your consumer services truly provide the best service.
The automotive industry involves big-ticket purchases and high emotional investment. With the automotive sector leading the way in state-of-the-art technology for our everyday lives, shouldn’t your contact center do the same?
Contact centers allow automotive businesses to provide a human touch for a highly emotional purchase, increase customer satisfaction to create lifelong customers and meet customers where they are to deliver instant and empathetic support.
Crucial contact center features
A modern contact center is equipped with various features designed to enhance efficiency, improve customer service and provide valuable insights. Here are some of the most crucial contact center features:
- Interactive voice response (IVR)
- Automates call routing
- Provides self-service options
- Reduces wait times
- Automatic call distribution (ACD)
- Routes calls to appropriate agents
- Improves first-call resolution
- Reduces call transfer rates
- Call recording
- Records and stores conversations
- Used for quality assurance and training
- Ensures compliance
- Call monitoring
- Allows supervisors to listen to live calls
- Provides real-time feedback
- Assists with difficult calls
- Real-time reporting
- Tracks key performance indicators (KPIs)
- Provides instant access to performance metrics
- Helps in making informed decisions
- Integrations
- Connects with CRM and helpdesk software
- Provides agents with necessary information
- Improves efficiency and personalization
- Workforce management
- Schedules staff effectively
- Forecasts call volumes
- Manages agent performance
- Analytics and reporting
- Tracks trends and identifies bottlenecks
- Measures strategy effectiveness
- Provides detailed performance insights
- Omnichannel support
- Integrates phone, email, chat and social media
- Ensures consistent customer experience
- Provides a complete view of customer interactions
- Self-service options
- Includes IVR menus, chatbots and knowledge bases
- Reduces call volume
- Empowers customers to resolve issues quickly
- Knowledge management
- Offers access to FAQs, guides and policies
- Helps agents find accurate information
- Improves first-call resolution rates
- Quality management
- Monitors and evaluates agent performance
- Includes call scoring and customer feedback
- Ensures high service standards
How much does a contact center cost?
Now that we know what a contact center is, how it works and what features it needs, it’s time to discuss cost. The cost of hiring a call center varies greatly depending on the services you need, how many services you need and where your call center will be located.
An onshore call center (located in the US) will be more expensive than an offshore call center in, say, India or the Philippines. Still, it can also provide valuable resources and exceptional customer service that is often worth the cost.
- Onshore call centers typically cost about $20 to $30 hourly per agent.
- Nearshore call centers may cost around $10 to $20 hourly per agent.
- Offshore call centers may cost around $6 to $14 hourly per agent.
Remember that contact center support is more than just a service — it’s a partnership that can provide valuable data, analytics, brand recognition, customer service and retention. If you’re unsure which kind of call center is right for you, check out our guide to offshore, onshore and nearshore call centers.
Some contact centers may also charge per minute so that you can pay for only what you need. The more minutes you pay for, the cheaper per-minute cost you’ll have. In general, you’ll see prices between $0.98 – $1.75 per minute.
With Global Resource, you can make sure you’re getting the exact services you need at a price that’s right for you. Check out our full list of services and contact a customer service expert today for a quote based on what you need — and nothing you don’t.
When you’re ready to scale up your team, increase sales and perfect your customer service experience, Global Response is here with a customer management experience that puts people first. Save money and increase sales with a brand-obsessed, people-first team that delivers a high-touch, superior customer experience every time.
FAQ
A contact center is a team within your organization that manages customer experience and interactions. While a traditional call center only handles voice calls, a contact center can handle interactions from a variety of channels, such as voice, SMS, web chat, social media, email and more.
- Improved brand consistency and messaging across all channels and customer communication increased sales and growth
- Excellent customer service that gives you a competitive advantage
- Improved customer retention, loyalty and satisfaction
- The ability to provide an omnichannel communication strategy
- Cost savings for your team as well as improved KPIs and metrics
A call center can benefit any business or brand trying to improve customer service and distinguish itself as a competitive, customer-focused brand.
Onshore call centers typically cost about $20 to $30 hourly per agent. Nearshore call centers may cost around $10 to $20 hourly per agent. Offshore call centers may cost around $6 to $14 hourly per agent.
