What Marks & Spencer Did in the Midst of Crisis

In the midst of crisis, outsourcing is a great solution to consider. 

marks & spencer outsourcing

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, a feature that allows customers to buy products online and pick them up from the physical store, is not as effective for M&S as it was for other retailers because 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:

  • Cut costs. Live chat support can serve as the tier 1 part of customer service. This can reduce phone if questions are just simple. Actually, customers prefer using live chat for simple questions and only opt for phone customer service for complicated matters such as billing issues. 

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 it in place. With the crisis it faces, M&S can outsource it to reduce operational expenses. M&S can use the money to make its 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.

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