In the midst of crisis, outsourcing is a great solution to consider.
Image Courtesy: BBC
Multinational retailer Marks & Spencer is facing a crisis. Its sales for both food and clothing have declined during the last quarter of 2017. To be specific, clothing and homeware fell 2.8%, while food fell 0.4%. This has left the company with no better choice but to close its unprofitable stores.
According to retail analyst Steve Dresser, high business rates and higher staff costs are the main reasons why some of M&S stores have become unprofitable. He also added the fact that the click and collect option, which allows customers to buy its products online and pick them up from the physical store, is not as effective for M&S as it was for other retailers given that M&S caters to a much older market.
The beauty of outsourcing
M&S has already discovered the beauty of outsourcing and how it can help with the crisis it currently faces. Just a few days in 2018, it transferred over 250 roles from its 430 IT Team to an offshore provider. This is in line with the company’s objective to save £30 million annually.
But if M&S is looking to cut more costs, there are other business functions that it can outsource. Upon checking its website, one function it can also outsource is its live chat support feature.
Benefits of live chat support
With the increasing demand for it, e-commerce sites should have a live chat support feature in place. With a live chat support, M&S and other e-commerce websites with this feature are able to:
- Improve customer experience. With a live chat support, a business is able to provide instant responses to queries. It makes online shopping a more convenient experience for customers with concerns about a product or service. This results in a boost in revenue growth.
- Cut costs. Live chat support serves as the tier 1 part of customer service. Hence, phone interaction may not be needed anymore if questions are just simple. As a matter of fact, customers prefer using live chat for simple questions and only opt for phone customer service for complicated questions that usually involves financial matters.
Indeed, live chat support is a must feature for all e-commerce websites right now. It is a good thing that M&S already have this in place. With the crisis it faces, it can be one of the functions it can outsource to reduce operational expenses. The money it can save in doing so can be used to fund efforts to make M&S’s food and clothing stores more profitable.
If this is an opportunity that you would like to learn more about, don’t hesitate to contact us. It will be our pleasure to share our knowledge with you.