Imagine you’re running a retail shop. You are serving your customers with exceptional customer service to retain them and sell more. Everything was going well, but one fine day you find that you are spending more money on providing customer service and support, and those costs are increasing day by day. You are planning to reduce the costs but do not know how.

In that situation, all you need is the right strategies to reduce customer support costs while maintaining and providing the same exceptional customer service, right? I hope for a big yes! Then why wait? Let’s discuss more.

When you aim to reduce service costs, it is often misconceived as a strategy that neglects customer satisfaction. However, this assumption is far from the truth. Reducing service costs can be achieved without compromising customer satisfaction by implementing a well-designed workflow that enhances productivity and enables cost savings.

Creating a workflow that boosts productivity involves streamlining processes and eliminating unnecessary steps or repetition. Identifying and removing inefficiencies, or optimizing operations, results in faster and more efficient service delivery.

This not only benefits your company by reducing costs, It also enhances the overall customer experience.

By automating certain tasks or implementing self-service options, you can reduce the need for manual involvement, thereby saving time and resources. This allows your employees to focus on more complex or value-added activities, leading to improved productivity.

As a result, your customers receive quicker and more accurate customer service. Ready to know the strategies to reduce customer service and support costs? Let’s dive into it in detail.

Top 13 productive tactics to reduce customer service and support costs in 2024

Let’s take a look at the strategies that you can use to reduce the customer service and support cost with a detailed explanation.

Outsourcing is the key! 

Cut down on hiring and re-training expenses by outsourcing even minor tasks.

Outsourcing your business operations can be a cost-effective way to cut down on customer service and support costs. By partnering with an outsourcing provider, you can leverage their expertise and resources to handle customer inquiries and issues more efficiently and cost-effectively.

This can include utilizing advanced technologies, such as chatbots or automated systems, to handle routine customer queries, freeing up your internal team to focus on more complex issues.

By reducing the workload on your in-house team and optimizing processes, you can achieve significant cost savings in customer service and support costs. Now you have some understanding of the importance of outsourcing your business operations.

But where you outsource matters the most. Where AM2PM Support comes in. Outsourcing your business operations with AM2PM Support can be a cost-effective solution and benefit you more. Let’s discuss how it will be cost-effective in detail.

How AM2PM Support helps in reducing customer service costs?

  • AM2PM Support allows you to reduce operational costs by eliminating the need to hire and train in-house customer service representatives. This can result in significant cost savings for your business.
  • Outsourcing customer service to AM2PM Support ensures that you can provide round-the-customer support to your customers. This 24/7 availability enhances customer satisfaction and helps in building a positive brand image.
  • Outsourcing customer service to a specialized provider like AM2PM Support that you can leverage the expertise and experience of professionals who are well-versed in handling customer queries and resolving issues efficiently. This can lead to improved customer service quality and fast resolution.
  •  Outsourcing customer service to AM2PM Support provides you with scalability and flexibility. As customer demands fluctuate, AM2PM Support can easily adjust their resources to meet the changes needs, ensuring that you can provide consistent and reliable customer support.

Looking for a cost-effective way to outsource your customer service?

Look no further than AM2PM Support! We’re here to help you reach your outsourcing goals.

Bring all customer communication together

Customer support costs can be high because of the need to handle and organize customer communication. When your customers use multiple communication channels, the costs can increase even more.

This is because your customers want to use the channels that are most convenient for them. They may also send the same message through different channels to make sure it is received.

How does bringing customer communication all in one place can reduce customer costs?

reduce customer service costs- Chart analysis about the customer service channel preferences.
Utilize this analysis to get to know more about the customer service channel preferences [Source – GetApp].

By unifying communications across different channels, you will be aware of the steps the customer has already taken to resolve their issue. This means your customer won’t have to repeat themselves, saving time and improving their overall experience. You can also streamline your process and eliminate the need for multiple communication platforms.

Consider and focus on training agent

Sometimes it’s hard to improve the performance of your agent. At that time, instead of parting ways with your agents, you can focus on finding the right agent for the job and investing in their training and development.

It’s important to take time to carefully evaluate potential employees to ensure they possess the necessary skills, motivation, and work ethic to excel in the role.

How can training agents reduce customer service costs?

  • When your agents are well-trained and knowledgeable, they can provide a positive customer experience, which can contribute to a strong brand reputation. This can attract new customers and retain existing ones, reducing the need for expensive marketing and customer acquisition efforts.
  • Effective training programs can enhance agent satisfaction and engagement, leading to higher employee retention rates. This reduces the costs associated with recruiting, onboarding, and training new agents.
  • Training agents in attention to detail and accuracy can help reduce errors in customer interactions, such as incorrect information provided or incorrect order processing. This reduces the need for rework or refunds, saving both time and money.

Promote self-service with engaging video content

Take a cue from Amazon’s book about how you can provide self-service video content on social media channels.

Self-service has become an integral part of our daily lives. From ordering food at a restaurant to booking a flight, self-service has made our lives easier and more convenient.

However, not everyone is comfortable with self-service, and some may need a little push to get started. This is where interesting video content comes in.

Video content is a powerful tool that can be used to promote self-service. It can be used to educate, inform, and entertain customers while showing a self-service process. Let’s see one example to understand this better.

Apple providing engaging video content on its instagram page.
Understand how Apple provides engaging video content on their instagram page and guide your customers in the same way.
[Image source – Apple]

Here you can see how Apple provides engaging video content on its social media page. You can use these tactics in your business to provide self-service video on your social channels.

Does promoting self service through video content lower customer service costs?

  • By providing your customers with detailed instructions and demonstrations through videos, they can learn how to troubleshoot common issues or perform tasks on their own without the need to contact customer service. This leads to reducing customer complaints and the costs.
  • Video content can be accessed by your customers at any time. This reduces the need for extended support hours or additional staffing which leads to a decrease in the additional customer support cost.

Collecting feedback and taking immediate action

The purpose of customer feedback is to gather information and opinions from your customers about their experience with your products and services.

In addition, customer feedback can also help you identify the strengths and weaknesses of your organization. By understanding what customers appreciate about your products or services, you can leverage those strengths to differentiate themselves from competitors.

On the other hand, by identifying areas where you fall short, you can work to improve those aspects and provide a better overall experience for your customers. Let’s see an example of a brand to understand this better.

Amazon collecting customer feedback.
Know how Amazon collects customers’ feedback and responds to them with warm replies.

Here you can witness how Amazon collects customers’ feedback. You can use this tactic in your business to collect feedback from your customers. By doing so, you can identify the areas for improvement, which leads to being more efficient.

How does customer feedback reduce customer costs?

  • Getting customer feedback and responding to customer complaints the need to guess what customers want and need in terms of support. This helps to reduce customer support costs by providing exactly what customers are looking for.
  • It also prevents unnecessary spending on new tools or techniques that may not be affordable or aligned with current support objectives.

Streamline repetitive tasks using customer support tools

Automation is a great way to save money on customer support. By choosing the right help desk software, you can automate tasks and stop relying on manual work. This helps your team members from different departments work together and be more productive.

How can you streamline repetitive tasks and how does it reduce customer service costs?

Let’s see how you can automate business activities that lead to lower customer service and support costs in detail.

Analyze key performance indicators (KPIs)

By monitoring key performance indicators (KPIs) such as response time, resolution rate, and customer satisfaction, you can identify areas for improvement and implement strategies to enhance efficiency.

For example, if a particular task consistently takes longer to complete, you can investigate the root cause and implement measures to streamline the process. By doing so, you can lower customer service and support costs.

Automate responses

One way to handle repetitive tasks more efficiently is through automation. Automation involves using technology to perform tasks that were previously done by a person. 

Let’s imagine, you are spending a significant amount of time answering frequently asked questions or providing basic information to your customers.

In that situation, by implementing an automated response system, you can streamline this process and provide instant responses to your customers’ complaints. This not only reduces wait times but also ensures consistent and accurate information is provided to your customers.

Use chatbots for customer support

Be aware of Domino’s chatbot support.
Domino’s provides excellent chatbot support for their customers.

Waiting for customer service responses can be frustrating and time-consuming, leading to a negative customer experience for your business. When a customer service chatbot enters the chat, it is a valuable tool for brand communication. Moreover, chatbots are virtual assistants that can interact with your customers in real-time and provide instant responses and assistance.

Unlike human customer service representatives, chatbots are available all day and offer 24/7 customer service, ensuring that your customers can reach out to your support team at any time, day or night.

This round-the-clock availability eliminates the need for your customers to wait for business hours or deal with long response times.

Moreover, chatbots never take time off or go on vacation. Chatbots are always online and ready to assist your customers and ensure a consistent and uninterrupted customer service experience.

This reliability is particularly beneficial for your business if it is operating globally or having customers in different time zones. Research says businesses spend $1.3 trillion each year to handle customer requests, and chatbots can decrease customer support costs by 30%.

What makes chatbots your ultimate cost-saving solution? 

Chatbots offer numerous advantages when it comes to cost savings. Let’s discuss more about the ways it can help you save money.

Reduces staffing costs

Hiring and training customer support professionals can be a time-consuming and expensive process. Additionally, retaining skilled professionals can be challenging, as turnover rates in this field tend to be high. By implementing a strong chatbot system, you can significantly reduce your customer support costs.

Offers 24×7 conversational assistance

Chatbots are providing services for round-the-clock support. So it reduces the need to hire separate agents to assist.

No more training expenses

One of the key advantages of AI chatbots is their ability to learn on their own from different customer questions. This means that they can continuously improve their responses and provide better support to customers without needing any special training.

Provide live chat support

By offering live chat support, you can reduce the need for phone support, which can be costly due to the need for additional staff and equipment.

Where outsourcing comes in. By outsourcing your live chat support to a third-party provider, you can provide high-quality service.

One of the benefits of outsourcing live chat support is cost savings. By outsourcing a chat service company, you can avoid the expenses associated with hiring and training in-house support staff. And it allows you to pay only for the support you need, as you can scale up or down as required.

Now you know the importance and benefits of outsourcing. But the question is where are you going to outsource live chat support? Where AM2PM Support enters the chat, AM2PM Support’s live chat support allows you to handle multiple customer inquiries simultaneously. And it reduces the need for additional staff to handle customer support requests.

Moreover, it can help you reduce response times and improve customer satisfaction. It provides round-the-clock support, ensuring that your customer receives a prompt and efficient experience.

Provide round the clock live chat support by outsourcing AM2PM Support's live chat service.
Launch excellent live chat support by outsourcing live chat services with AM2PM Support.

How live chat support helps you reduce costs?

  • Live chat support can help you reduce the number of returns and refunds by addressing customer concerns and questions in real time. This can lead to increased customer satisfaction and loyalty, as well as a reduction in the number of customer complaints and ultimately reduce the costs of hiring employees.
  • Live chat outsourcing boosts sales and helps you gather valuable customer feedback and insights, which can be used to improve products and services. This can lead to increased customer satisfaction and loyalty, as well as a reduction in the number of customer complaints.

Ready to provide excellent live chat support and eliminate additional costs?

Utilize AM2PM Support’s live chat support with cost effective plans.

Consider support staff’s well being

Caring about the support staff’s well-being is important because it plays a crucial role in the smooth functioning of your business. If the support staff is not well, it can negatively impact their ability to perform their duties effectively, leading to a decline in overall productivity and performance.

Taking care of the support staff’s well-being will reduce customer service costs but how?

The well-being of the support staff directly affects their job satisfaction and morale. When your employees feel valued and cared for, they are more likely to be engaged, motivated, and committed to their work.

On the other hand, if their well-being is neglected, they may become disengaged, demotivated, and experience higher levels of stress and burnout. This can result in increased absence, higher turnover rates, and a decrease in the quality of work.

Utilize customer portal

One of the key features of the customer portal is its ability to automatically process the information provided by customers. This automation allows for quick and accurate handling of customer requests, reducing the need for manual intervention and minimizing the chances of errors or delays.

For instance, your customers can submit forms, documents, or requests through the portal, and the system can automatically process and route them to the appropriate department or individual for further action.

How does customer portal reduce costs?

This customer portal serves as a convenient and efficient platform for your customers to interact with you, eliminating the need for traditional phone calls or in-person visits.

By accessing the portal, your customers can easily submit their inquiries, requests, or feedback, it saves their time, effort and well-being, it reduces the probability of customer complaints and cuts down the number of phone calls which will lead to reduced costs. Furthermore, you can reduce customer service costs in several ways.

Interactive Voice Response (IVR)

To save money on customer service, use technology like the IVR system. This system can help you save money and be more productive. It can talk to customers and do things based on what they say or press on their phone. It will extremely help your team to provide exceptional service in a quick way.

Improve First Contact Resolution (FCR) rate

FCR stands for First Contact Resolution which means the number of problems solved in the initial contact without the need for further calls or emails.

When your customers receive answers to their basic questions, they won’t have to reach out to your support team again. This means that one interaction is sufficient for your customers to find assistance. Consequently, IVR systems can assist in enhancing your FCR rate.

Reduce agent intervention

Customers can conveniently receive assistance without the need to speak with a representative by utilizing a speech-enabled IVR.

This technology allows your customers to inquire about various matters such as their appointments, bookings, support ticket status, refund status, and more by simply making a phone call.

Offer proactive customer service

Changing to proactive customer service can save money. Proactive customer service helps solve problems before customers need to ask for help. Many customers use social media like Twitter and Facebook to find solutions.

Now you may have a question, How to offer proactive service? To offer proactive customer service, you can use social media brands.

According to Marketing Charts, nearly half of your customers, which means 47% use social media to stay updated on your company’s activities. This highlights the importance of social media as a vital tool for delivering excellent customer service.

SproutSocial data about why consumers follow brands on social media.
Get to know why consumers follow brands on social media [Source – Marketingcharts].

Another way to offer proactive customer service is to send engaging emails. Email marketing is a cost-effective and efficient way to reach a particular group of people in your audience. Let’s see an example to understand this better.

AmbitionBox sends personalized welcome mail to their customers.
Take a cue from AmbitionBox on how it sends personalized messages, use this strategy in your business to elevate engagement.

From the above picture you can see how AmbitionBox sends an engaging welcome message to their customers through email after the immediate signing up. You can note this point down and use this tactic in your business operation to boost up engagement.  

Moreover, by sending targeted messages and providing personalized customer service, you can build stronger relationships with your customers, drive more revenue for your business, and effectively reduce the customer service cost.

Outsource ticket tasks with a effective ticket system

With a digital ticket management system, you can easily monitor the status of each ticket, track response times, and generate comprehensive reports. This data can provide valuable insights into your team’s performance, identify areas for improvement, and help you make data-driven decisions about your sales performance.

By automating the process of ticket creation, assignment, and resolution, you can streamline your operations and reduce manual errors. This allows your team to focus on more critical tasks, leading to increased productivity and faster response times.

Moreover, implementing ticket management systems can save costs. By reducing manual labor and minimizing errors, you can optimize resource allocation and reduce operational expenses.

Where AM2PM Support enters the chat, AM2PM Support is a top-notch provider of ticket management services in the market. With a transparent and easy-to-follow process, they guarantee a seamless transition. They put your business needs first to improve customer loyalty.

By outsourcing your ticket management tasks with efficient solutions like AM2PM Support you can provide your customers with 24/7 customer support, reduce customer service and support costs and you can retain customers.

How does outsourcing ticket systems help in reducing customer service costs?

  • Outsourcing ticket management systems reduces customer service costs by offloading the responsibility to a third-party provider.
  • It allows you to save on hiring and training customer service staff.
  • Outsourcing helps in reducing infrastructure and technology costs associated with managing ticket systems in-house.
  • It enables you to benefit from the expertise and efficiency of specialized ticket management service providers.
  • Outsourcing ticket management systems can lead to improved customer satisfaction and retention, resulting in long-term cost savings.

Focus on agent retention

Retaining agents can contribute to a positive work environment and employee morale. When agents feel valued and supported by the company, they are more likely to be engaged and motivated in their work. This can lead to higher job satisfaction, lower absence rates, and increased productivity.

A workplace survey report found that 94% of surveyed employees responded that if a company invested in helping them learn, they would stay longer.

The only way to resolve this issue is to prioritize agent retention. By doing that, you can save money, improve customer service, boost employee morale, and enhance your reputation.

How can focusing on retaining agents benefit you while reducing customer service costs?

  • When agents leave frequently, you have to spend a considerable amount of money on recruitment and training. By retaining agents, you can save on these costs.
  • Experienced agents are more productive and efficient in handling customer queries. Retaining such agents can help in reducing the time and effort required to resolve customer issues, thereby reducing costs.
  • Retaining agents who are familiar with your company’s products and services can help in providing better customer service. This can lead to increased customer satisfaction and loyalty, which can ultimately reduce costs associated with customer churn.
  • Experienced agents are less likely to make errors and require less supervision. This can help in reducing the need for rework and the associated costs.
  • Retaining agents can help in building a knowledge base of customer issues and their resolutions. This can help in reducing the time and effort required to resolve similar issues in the future.

Have a strong social media strategy

According to studies, 60% of customers who reach out for help on social media expect a reply within an hour. This statistic highlights the urgency and importance of providing timely assistance to customers on these platforms.

While responding within an hour may seem like a daunting task, social media offers a faster way to provide customer service compared to traditional methods. Unlike phone calls or emails, social media allows you to engage with customers in real-time.

This means that you can address customer queries, concerns, or complaints instantly, without the need for customers to wait on hold or for an email response. Let’s see an example of a brand that provides customer support through their social media page.

Brand responding to their customer complaints through their social media pages.
Utilize social media pages and respond promptly to your customer queries [Source – Birdeye].

From the above picture, you can see how the brand responds to its customers via social media promptly. By implementing a social media strategy in your business you can bring numerous benefits.

Moreover, it enhances the quality and efficiency of your customer service, establishes a strong brand identity, and can be a cost-effective solution.

Lower your customer service cost while maintaining high quality support

The impact of poor customer service goes beyond just losing customers. Negative word-of-mouth can spread rapidly, influencing the opinions and decisions of others who may have been considering doing business with you and increasing customer complaints. This can result in a decrease in new customer acquisition, hinder your company’s growth, and increase the probability of customer support costs.

On the other hand, exceptional customer service can have numerous benefits for your business. Satisfied customers are more likely to become loyal advocates for your brand, recommending your products or services to their friends, family, and colleagues.

This positive word-of-mouth can lead to increased customer retention and reduce customer service costs by decreasing customer complaints and acquisitions, ultimately driving revenue growth.

To save money on customer service, don’t cut your budget or spend less. Instead, invest wisely in things that will benefit you in the future.

The right cost strategy can make your operations smarter and reduce your customer service costs, which can help your business make more money.

To ensure cost-effectiveness, prioritize channels like chat or email, provide proactive support, establish a knowledge base portal, and empower your employees for long-term retention.
By outsourcing your business operations with AM2PM Support, you can grant round-the-clock customer support. Moreover, AM2PM Support provides personalized customer service via multiple channels, managing ticketing systems, handling customer complaints more effectively, and supplying extraordinary customer service at a cost-effective price. Still thinking? Request a callback to get it all.

  • Muppudadhi P

    I'm Muppudadhi, a passionate content writer with a knack for crafting engaging narratives and delivering impactful messages. With a keen eye for detail and a dedication to excellence, I bring words to life.