Can Fintech Startups Gain An Edge By Outsourcing Support?
With the number of global fintech startups growing from 12,131 in 2018 to 26,366 in 2021, competition is fierce. Factor in the sobering statistic that 90% of startups fail, and it’s clear that new fintech companies have little room for error.
Startups today have to present outstanding products, the best service and still keep a handle on costs. Of course, all of these are possible, but only if the company is willing to consider innovative solutions. For example, live chat outsourcing. Is this the right solution for your company? Read on to learn more.
Why Customer Support Can be a Game Changer for Fintech Startups
Fintech startups often operate on shoestring budgets. Therefore, deciding to take on additional expenses requires serious thought. The decision may come down to a lower marketing budget or not offering live support.
It’s a bit of a catch-22 situation. While you need marketing to attract clients, you need optimal support to keep them happy. By providing the proper support, you resolve client queries quickly and improve satisfaction.
What’s more, when you have a dedicated team, you can task them with providing proactive support. This type may wow your clients because you reach out to them before they experience an issue.
For example, it could be a call to see how they enjoy using your software. Alternatively, companies can track usage analytics and identify clients who pay for features they don’t use. They might then reach out to these clients to see if they need assistance.
By doing so, you shift the paradigm from reactive to proactive service. Your company improves customer satisfaction by addressing issues before they annoy your client.
The Costs of Outsourcing Support
Startups concerned over the cost implications of outsourcing support should perform a careful cost-benefit analysis. It’s essential to include all potential costs, even ones of a less tangible nature. Firm expenses related to the cost of running an in-house team include:
- Recruitment drives
- Interviewing candidates
- Onboarding
- Training
- Equipping the team and maintaining the equipment
- Rental and house-keeping costs related to housing the team
- Security for the offices and the devices the consultants use
- Employee salaries, overtime pay, and incentives
- Benefits such as medical, travel allowances, paid sick leave, and annual leave
Should consultants leave, you face the prospect of finding and training a consultant up from scratch.
As to the less tangible expenses, you must consider the opportunity cost related to how long it takes to build your team. If your competitor is faster at assembling their team, you could lose market share quickly.
While it would seem to make sense to handle everything in-house, the business world is too complex for this approach today. With your competitors accessing a global talent pool, they can offer better service and save money.
Making Outsourcing Successful
Professional outsourcing services have the equipment and trained consultants to assist you immediately. They can assist you in upscaling operations to meet increasing demand as soon as possible.
When your business experiences periods of rapid growth, it can be challenging to keep up with the surge in operational demands. Specialized services, such as technical support, accountancy or cloud management offered by a managed it provider, can be a game-changer. These outsourcing partners have the resources, expertise, and scalability to help you seamlessly accommodate increased workloads and ensure the efficiency of your critical business functions.
However, it’s crucial to view this as a partnership and take the same care you would when taking on a partner. While you don’t have to worry about profit-sharing, you are entrusting your firm’s reputation to a third party.
How good they are will reflect on your firm, so be careful to vet the company carefully before signing a contract. Professional providers will take some time to get to know more about your operations instead of simply offering a generic solution.
In Conclusion
Outsourcing in general, and live chat outsourcing in particular, can prove advantageous to your startup. It provides you with access to trained personnel and reduces your overall costs. However, the caveat is that you must select the company you work with carefully.
