The Benefits of a Virtual Call Centre

The importance of offering customers non-automated services cannot be understated, but it is not always possible for a business to set up a physical call centre. By setting up a virtual call centre your business can gain access to talented individuals around the world, increase the presence of your business globally, and drastically reduce your overhead costs versus a traditional call centre.

In this guide from Virtual Landline we will show you how to set up your own virtual call centre in 10 simple steps.

What is the Difference Between a Call Centre and a Virtual Call Centre?

Whilst both types of call centre involve handling customer interactions directly, they differ in both structure and operation, and offer a number of pros and cons that a business must consider.

Benefits of Starting a Virtual Call Centre

Virtual call handling may be the future of customer service. Modern technology means that call centre agents can be set up relatively quickly and easily from their own homes, in fact, the biggest example of this would be during the Covid-19 pandemic, when many furloughed workers found second jobs working remotely as Covid-19 call advisors, contacting people over the phone regarding their Covid results and the steps they needed to take following a positive result.

This sudden increase in 'virtual call centres' provided valuable data and assurances that work from home customer service jobs may be the most viable option for call centres in the future.

There are a number of benefits to utilising customer service jobs from home, such as:

1. Reach a Wider Audience

Because a virtual call centre has no fixed geographical location, and is in fact only a call 'centre' in name, you can gain access to talented staff globally, as well as their local audiences.

Employing agents in specific regions, and designating their customer base locally, can help improve customer experience and reduce the 'psychological distance' between the agent and the customer.

Psychological distance refers to the degree of perceived separation, or distance, between an individual and a particular concept, product, event, or person. It is a cognitive construct that can influence how people think, feel, and make decisions, and studies in cognitive science and decision-making research suggest that reducing psychological distance through the use of commonality such as regional dialects, tone of voice, and native languages, may improve customer satisfaction and trust markers.

A study from the SKIM group had the following to say on psychological distance theory:

“Lower psychological distance allows people to focus on your product or service concretely instead of abstractly, giving them a clear and tangible idea of what they are going to get. This impression, ultimately, allows the consumer to “experience” rather than see the product.

This tends to generate more desirable product judgments and helps create a match between what the consumer is looking for and what your brand offers.”

Another way to improve the local presence of your business is to obtain a virtual local or national number from Virtual Landline. Virtual Numbers grant you access to landline numbers with specific regional area codes, meaning you can easily maintain a business presence anywhere in the UK.

2. Reduce Staff Turnover

According to research conducted by the SQM (Service Quality Measurement) Group, turnover rates for call centres was around 35% in 2021, and 38% in 2022 - the national average for most other industries is around 15%.

This is for a number of reasons specific to the call centre industry, which can include stressful working environments, social disconnections between staff members, or low pay. This is a common issue for traditional call centres around the world, and it is often the case that companies with a high turnover rate tend to have a less skilled workforce due to this issue.

Whilst there have yet to be any studies on a specific reduction in staff turnover related to virtual call centres, studies from Stanford University state that employees who work from home have a 50% less turnover rate, with over 17% being more productive when working from home.

The benefits of maintaining a time-served and skilled workforce are considerable when it comes to customer service. Retaining your staff for long periods of time will allow them to develop and grow both their general customer service skills, their specific knowledge of your business, and how they can use that knowledge to increase customer satisfaction.

3. Increased Business Hours

Because the workforce of your virtual call centre can be based in different time zones, you can technically offer 24/7 customer services to your customers.

Advertising that your customer services are open 24/7 is a great way of signalling trust to your customers, as they understand that they can receive support for your product or service at any time. This can also go a long way to increasing employee satisfaction, as you can allow for each employee to work standard rather than extended business hours. For many traditional call centres, the average working day may be longer than for other industries, and this can be a risk factor in having a high staff turnover.

4. Reduced Overhead Costs

At the most basic level, a call centre agent will require a laptop, headset, and inbound/outbound call software.

This equipment is essential for all types of call centres, but in a traditional call centre there are also considerably more overhead costs related to equipping your agents - the biggest consideration being the actual office space.

On top of this cost, you must also consider energy and utility bills, internet bills, the rent or mortgage on the office space, chairs, desks, and more. By setting up a virtual call centre, you can avoid excessive overhead costs by hiring a workforce of customer service experts working exclusively from their own home. There are also tax benefits in most countries for the agents themselves for working completely remotely, such as expenses that can be deducted from energy bills based on the percentage of use for work.

5. Benefits of a Traditional Call Centre

Generally speaking, in a traditional call centre you gain the benefit of having direct control over your agents. In terms of monitoring their working hours, or providing face-to-face training or support during difficult customer interactions, it is often easier to have supervisors and managers physically present with their agents.

Let's take a look at a common situation that can occur in a call centre environment:

In this example, our call centre handles inbound B2C (Business to Customer) calls for a national phone company that provides mobile phone contracts.

• An agent receives a call from a customer stating they are unhappy with their current data plan.

• The customer states that they received a sales call from an agent, and after talking to the agent about their daily usage and needs were convinced that they would need a new mobile phone with 150GB of data usage a month.

• After using the phone for the last 3 months, they realised their monthly data usage is less than 5GB, and they are unhappy paying so much for a contract they do not need.

• The agent apologises, and asks the customer what they can do to rectify the situation.

• The customer demands to either be taken off the contract, or have their contract renegotiated to reduce the monthly cost in return for a smaller data allowance. They would, however, like to keep the phone.

In the above example, the agent would likely need to raise this issue with a manager or supervisor as they are on the call, without making the customer wait. This can easily be done in a physical call centre by simply raising a hand, or motioning for a supervisor to come over to the agent and offer on-the-spot support.

There is rarely a 'one size fits all' solution to a customer's problems, as they can widely vary from one person to another. Because of the nature of customer complaints they will often require a bespoke solution that will need a supervisor or manager's approval to implement. This is achieved far more easily by having agents and their superiors placed in the same physical environment. In this example, the supervisor may be able to authorise a change in the contractual terms to accommodate this specific customer's complaint, but this may not be a solution that is generally offered or allowed in the company's terms of agreement.

This type of situation often occurs in call centres, regardless of the service their company offers. Dealing with complaints of this nature is at the heart of a call centre's purpose, because the point of implementing a call centre is to increase customer satisfaction, and reduce negative public reviews.

You may want to consider that, if your business has customers with complex needs or complaints, a traditional call centre may be more beneficial to you.

10 Steps to Starting a Virtual Call Centre

Now that you understand the benefits of a virtual call centre for your business, you can start to plan your new virtual call centre in 10 easy steps.

1. Identify the Purpose of Your Virtual Call Centre

You should first identify the purpose of your virtual call centre. Is it meant for customer service for an existing business? Is it a sales call centre? Will you be conducting inbound calls, outbound, or both?

2. Set the Goal of Your Virtual Call Centre

Before diving in, it's essential to establish clear objectives for your virtual call centre. Determine what you aim to achieve, whether it's cost savings, expanded global reach, or improved customer service.

3. Figure Out a Budget

Create a comprehensive budget that covers all aspects of your virtual call centre setup, including technology, staffing, and ongoing operational costs. Knowing your financial limits is crucial.

4. Choose the Right Technology for Your Business

Select the technology stack that aligns with your virtual call centre's requirements. This includes choosing the appropriate software, hardware, and communication tools to ensure smooth operations.

5. Find Talent Around the World

One of the advantages of a virtual call centre is the ability to tap into a global talent pool. Explore the world to find the right agents and support staff to build a diverse and skilled team.

6. Invest in Training and Onboarding Your Team

Training and onboarding are critical for virtual call centre success. Develop comprehensive training programs to equip your team with the skills and knowledge they need to excel in their roles.

7. Standardise Your Equipment

Maintaining consistency in equipment, software, and communication tools is key to efficient operations. Standardise your equipment to ensure seamless communication and data management.

8. Set up Your Workflow

Design a well-structured workflow that outlines how calls are routed, handled, and resolved. A streamlined workflow enhances efficiency and customer satisfaction.

9. Create a Good Company Culture

Nurture a positive and collaborative company culture, even in a virtual environment. Foster a sense of belonging, communication, and shared values among your remote team.

10. Promote Your Call Centre

Once your virtual call centre is operational, it's time to promote it to potential clients, customers, and partners. Marketing and outreach efforts can help your call centre gain visibility and clients.