What Are The Challenges Faced By The Retail Industry? How Can A Retail BPOHelp?

ConcludingPeople in the retail industry are currently facing conflicting pressures. On the one hand, the need to minimize costs and gain a competitive edge to enhance their connection with the shoppers using innovative processes on the other. Many retailers are turning to outsourcing customer services as a strategic tool to meet new challenges and build their retail business’s capabilities.

Even renowned organizations like Walmart and Best Buy that have traditionally avoided outsourcing are now embracing it. For example, Best Buy company outsourced all of its IT operations to an established Retail BPO service provider in 2004 and continues to outsource some IT roles today as well.

Alternative Options For Retail Businesses

Most retail businesses are seeking various game-changing solutions that can make their operation more efficient while gaining a competitive edge and reducing in-house costs. For some retailers, outsourcing retail BPO services is the best way to drive innovation and access industry-leading processes and technology. Through the way of outsourcing, many retailers are able to re-engineer their efficiencies to generate revenue flow and place themselves ahead of competitors when the economy picks up.

According to a study in 2010, outsourcing mainly remains underutilized by the retail industry compared to other industries. Outsourcing in retail makes up only 5 percent of all offshore services, with the most outsourced IT services. Outsourcing continues to emerge, but engagements are shifting away from big deals to smaller portfolio outsourcing contracts.

Sainsbury’s and Barclay’s Bank have dropped huge transformational deals, and most retail companies have adopted hybrid ITO and BPO models. According to Data Monitor and TPI, the number of Retail BPO contracts increased by 40 percent in the year 2009, but the average contract size was fairly modest at about $60 million. Only the big-sized and most established retailers like Target and Tesco were able to consider offshore captive centers.

Challenges in the retail industry

Retailer businesses today are confronting many obstacles, from high operating expenses to market saturation to disruptive technology to lesser buyer loyalty.

Huge Operating Costs:

In today’s market sphere, retailers are contending with increasing overheads and business operating costs, including utilities, HR, and rental rates. To absorb the expenses and plan HR campaigns more efficiently, most retail businesses have no other choice but to look internally.

Complex Logistics:

Management of multiple suppliers and several fulfillment locations is a difficult task that is turned even more challenging by implementing stricter regulations and rising supply chain management costs. To reduce the costs, many retailers are forced to carry the supply risk burden when they serve as suppliers in a collaborative supply chain model.

Saturated market:

The retail industry is already saturated with multiple brands, and companies that want to penetrate new markets need innovative strategies that can be challenging to develop and implement in-house.

Rise of E-commerce–

Whereas, the rise of the e- sector is intensifying the pressure for organizations to optimize their online presence and offerings. Forrester Research estimated that U.S. online shoppers spent $327 Billion in 2016, which stretched many companies’ existing capabilities. Like companies in other industries, mobility, cloud services, social business, and big data are affecting how retailers do business. With social media channels and mobile devices as points of purchase, companies without a digital transformation strategy risk being left behind.

Retail solutions Outsourcing:

Moreover, outsourcing retail BPO services remains a strong growth proposition as it offers impressive solutions that do not require compromise. Here are just a few ways an offshore partner can help a retail business become a top-performing organization.

Better Scalability and Flexibility:

With outsourcing, retail staff does not have to choose between cost reduction or process improvements. BPO companies’ providers have access to better technology and greater scale and cost-efficient measures. As retail companies save more through outsourcing, they can reinvest resources toward processes that will position them towards growth and competitiveness.

Benefits Of Hiring A BPO

• Pocket-friendly pricing options–

  Firstly, outsourcing retail BPO services offer cost-effective pricing options that will suit all your business requirements.

• Superior services quality–

  An excellent retail BPO partner is ISO certified, ensuring that all the services offered are entirely free of errors.

• Enhanced data security–

  BPO companies ensure that all your companies’ data are kept in a hidden vault and can be accessed only by your trusted members.

• A skilled team of professionals–

  The BPO team is equipped with skilled professionals who can take care of all your BPO needs with ease.

• Single point of contact–

  Call centers will assign a dedicated account manager that will be the single point of interaction for all your needs.

• Easily scalable services–

  Agents have the bandwidth to scale up the service requirements and ramp up the team size.

• Quick turnaround–

  BPO team operates through several delivery points spread in different time zones. This enables them to deliver top-notch services within a short frame of time.

• Round-the-clock support–

  Lastly, all the call center team, including marketing, sales, customer support, and others, are available 24/7 via multi-channel communication channels.

Why Do You Need Retail Outsourcing?

Furthermore, outsourcing customer services will introduce you to new and innovative strategies to improve your product and services. On the other hand, expanding your options can provide brand new opportunities to survive and grow in the competitive retail market. Your retail business must not be only one-dimensional in terms of customer service. Retail companies now have multiple channels to communicate with their customers and develop their products and services. Although, the Retail and E-Commerce industry is gradually changing its approach toward sales when it comes to customer service. You must follow the trend, or else you will get stuck in an old business strategy.

When it comes to your retail business, you must consider the flexibility of the services a BPO partner provides you: Call center agents can act as an answering service, salespeople, customer service, and many others. Agents have pre-built knowledge of your product and services to help you with seamless customer service for your brand.

• Firstly, call centers hire talents based on the criteria that you provide
• Secondly, agents taking rigorous training about various call center programs depending on your requirement
• Thirdly. BPO partners conduct mock calls to ensure agent’s preparedness before actual onboarding

Indeed, retail BPO guarantees excellent support for all your retail operations. All of our outsourcing services will gain favorable feedback from the customers you serve.

Summing Up

Concluding, never afford to lose the opportunity of serving your customers the best. Many retail businesses experience positive growth after they choose to outsource their certain business operations to a BPO service provider. With equipped infrastructure, BPO agents have knowledge of every possible service for your retail business needs. They have the ability to manage all your inbound and outbound call center needs.