Are Startups Better Off Outsourcing Their Customer Service

Small business owners have to work twice as hard in order to stay ahead of the competition. The number one challenge of running a business is finding a more cost-efficient and cost-effective way to operate your business, especially customer service, as this is one of the greatest assets of every entrepreneur. 

Research shows that 71% of customers prefer talking to someone when they have a concern. Customers remain loyal to brands that provide a quick response time and resolution to their questions and concerns. This shows the importance of being available to customers. 


However, when you fail to accommodate concerns and leave their questions unanswered, this may result in losing customers. How are you able to deliver quality customer service while maintaining your main business functions? Startups turn to outsourcing companies to support their customer service team while keeping the costs low. Although this may be a viable solution, outsourcing may not be for every business. Here are questions you should ask yourself to know whether outsourcing customer service to a business process outsourcing company will benefit your small business. 

  1. Are you spending too much? This is common for small business owners. When a company decides to hire in-house for customer service, the cost gets higher because the company is obliged to invest in training programs, recruitment, infrastructure, and more. Additional costs can be avoided when you partner with top outsourcing centers. BPOs have readily available infrastructure and manpower to manage your business. 

  2. Are you aiming to grow your business? Outsourcing reduces the challenges of providing excellent customer service. Instead of focusing your time and energy handling service level expectations of customers, your outsourcing partner will handle all of it. Since this is what call centers are good at, you can be confident that your company will grow in many aspects through customer service delivered in a plethora of channels to reach your market.

  3. Can you handle large data volume? This is one of the questions you have to consider. If the volume of inquiries gradually increases, it might be easier to handle. However, for businesses that have peak seasons, there can be unpredictable volume changes. This is where partnering with an outsourcing company would be an ideal solution. Service providers are experienced in handling seasonal call volumes and are equipped to predict patterns in customer care throughout the sales life cycle.

There are no strict rules when it comes to outsourcing. Small business owners must first understand the reason why they should consider it in the first place. Will it benefit them? Will they require assistance? Small companies with little to no experience may want to start with this strategy to gain a better understanding of their customers and discover new ways to retain them. 

3 Benefits of A Ghost Kitchen

As governments around the world restrict restaurants from dine-in operations, many business owners turn to ghost kitchens in order to stay open. A ghost kitchen doesn’t have a physical place for its customers, as it operates as a delivery-only restaurant. This means that these establishments heavily rely on food delivery companies such as GrubHub, DoorDash, Uber Eats, and the like. 


Since the sales of delivery companies increase year after year, it’s only a matter of time that delivery-only restaurants emerge.  Everyone from established restaurants to aspiring startups is getting in on the action because of its minimal costs, incredible margins, and growth potential. 

Here are three reasons why now is the perfect time to venture into the ghost kitchen business. 

  1. Food delivery is booming.  The way people obtain food has changed as restaurant businesses are being shaped by technology. Especially in the time of COVID-19, people are spending less time going to restaurants and spending more time ordering online. In fact, 52% of adults say that ordering takeout or delivery is essential to their everyday lives.

  2. Optimized food costs. Unlike most restaurants that offer a diverse menu, ghost kitchens operate on smaller, limited menus. A smaller menu is optimized for the delivery experience, which allows you to eliminate items that aren’t suited for travel. Smaller menus also mean simple purchasing, a more streamlined production, and a more precise margin. 

  3. Reduced labor costs. Restaurants usually keep their labor costs percentage between 20% and 30% of gross revenue. However, in a ghost kitchen setup, those numbers can be much lower. Since a ghost kitchen doesn’t require a physical place, you don’t have to hire waiters nor a cleaning staff. You can have your entire team in a medium-sized space, and still, be able to meet your customer’s demands. Another way to reduce costs is through Facebook and LinkedIn.