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by Mary Salgado

Updated:

Apr 21, 2023

Answering Services vs. Call Center Services: Which Is Right for Your Business?

In today's fast-paced business world, customer service is one of the most critical factors in achieving success. Every business, big or small, needs to communicate with its customers effectively and efficiently. The rise of technology has given businesses numerous options for handling customer communication, including answering services and call centers. However, there's often confusion between these two terms, and many business owners may not know which option is best for their business.

In this article, our team at Hit Rate Solutions will explain the differences between an answering service and a call center and provide guidance on which one to choose for your business. In addition, we'll discuss the functions of each, the advantages and disadvantages of each, and provide recommendations on how to choose the right option for your business.

Telephone Answering Service

An answering service is a third-party company that provides telephone answering services on behalf of businesses. These services can be an efficient and cost-effective way for businesses to handle incoming calls, particularly if they don't have the resources to support a dedicated customer service department. Here are some advantages of using an answering service:

  • ‍Cost-effective: Answering services can be more affordable than hiring a full-time receptionist or customer service representative.‍
  • Round-the-clock availability: Many such services offer 24/7 availability, allowing businesses to handle customer calls at any time of the day or night.‍
  • Personalized customer service: Live answering services can provide a more personalized customer experience, making customers feel valued and heard.‍
  • Reliable: Provides a reliable way to handle inbound calls outside of regular business hours, particularly in emergency call situations.‍
  • Improves the customer experience: Offers a real human being to answer phone calls, improving the customer experience.‍
  • Can handle more than one call: Can handle up to three calls simultaneously, providing efficient call handling for businesses.‍
  • Offers first-call resolution: This means that customer inquiries can be resolved during the first call, leading to increased customer satisfaction.‍
  • Customizable: Can customize call scripts to reflect the needs of the business and its customers, ensuring a high level of service.‍
  • Automated: Automated answering services use IVR technology to handle customer calls, providing a self-service option for basic inquiries.

Call Centers*

*may be simply called "CC" or "CCs" further

best answering services for businesses

A CC is typically a centralized location where customer service representatives handle inbound and outbound calls on behalf of a business. There are three main types: inbound call centers, outbound call centers, and blended call centers. In a call center environment, call center agents work together to process calls and provide customer service to potential customers.

Here are some advantages of using a call center for in-house customer service reps:

  • ‍Professional service: One of the main advantages of using a call center is the level of professionalism it provides to your customers. CCs are equipped with the latest technology and have highly trained customer service representatives who can provide a high level of service that can enhance your business's image and reputation, leading to increased customer loyalty and repeat business.‍
  • Scalability: Another advantage of using a call center is scalability. CCs can be easily scaled up or down to meet the dynamic needs of your business. This is especially important for relatively large businesses that experience fluctuations in call volume due to seasonality or other factors.‍
  • Enhanced customer satisfaction: CCs are designed to handle a high call volume and provide a better customer experience than an answering service. For example, call center representatives are trained to handle calls efficiently and effectively, providing personalized solutions that are tailored to customers' needs. As a result, many businesses see higher levels of customer satisfaction, increased loyalty, and positive word-of-mouth advertising.‍
  • Advanced technology: CCs are equipped with advanced technology that can streamline call handling and improve the overall customer experience. This includes tools such as IVR systems, call recording and monitoring, and customer relationship management (CRM) software. These technologies can help your business better understand your customers' needs and preferences, leading to more effective and efficient call handling in the future.‍
  • In-house control: If you choose to have an in-house call center, you'll have more control over the customer service experience. You can train each call center agent to represent your brand and provide the level of service you desire. This helps to ensure consistency and quality in your customer interactions.‍
  • Cost-effective: Although setting up an in-house call center requires a significant investment in technology and personnel, it can be a cost-effective option in the long run. By providing a high level of customer service, you can increase customer loyalty and repeat business, leading to increased revenue over time.

Telephone Answering Services vs. Call Center Services

There are several differences between answering services and CCs that businesses should be aware of before choosing one. These include:

  • ‍Size and scope of operations: CCs are typically larger and more complex than answering services and they have more resources to handle a higher volume of calls.‍
  • Level of automation: Answering services rely heavily on automated technology, while CCs rely more on live customer service representatives.‍
  • Types of services offered: CCs can provide a wider range of services, including inbound and outbound calling, customer support, and technical support.‍
  • Cost and pricing models: An answering service is generally more cost-effective than a call center, which can have more complex pricing structures based on call volume and service-level agreements. ‍
  • Customer experience: CCs provide a more professional and personalized customer experience, while answering service may be more limited in the ability to provide customized solutions.

Choosing Between the Two Options

call center for small business

Our team at Hit Rate Solutions understands that choosing between an answering service and a call center can be a daunting task. There are several factors you should to ensure that the right choice is made for your business. Let's take a closer look at these factors.

Business Needs

The first factor to consider when choosing between a telephone answering service and a call center is the nature of your business. If your business requires simple call handling, such as appointment scheduling or basic customer inquiries, then a telephone answering service may be sufficient. However, if your business requires more complex call handling, such as technical support or customer service, then a call center may be the better option.

Budget

The second factor to consider is your budget. Answering services are generally more affordable than CCs, making them an attractive option for small businesses with limited budgets. CCs can be more expensive, but the additional cost may be justified by the benefits they offer, such as improved customer satisfaction and scalability.

The Volume of Calls

Another factor to consider is the volume of calls that your business receives. If you have a low volume of calls, an answering service may be sufficient to handle your needs. However, high call volumes may require a CC that is better equipped to handle the increased workload.

The Complexity of Calls

The complexity of the calls that your business receives is another factor to consider. If your calls require more complex solutions or technical support, a CC may be the better option. CCs can provide specialized support and have the resources to handle more complex calls effectively.

Customer Service

What level of customer service does your business require? This is another facet to keep in mind. Live answering services can provide a more personalized customer experience, making customers feel valued and heard. However, call centers can also provide high-quality customer service with trained CC agents who can provide efficient and effective solutions to customers' needs.

Scalability

contact center answering services

Scalability is another consideration. Call centers can be easily scaled up or down to meet the changing needs of your business. This is especially important for businesses that experience fluctuations in call volume due to seasonality or other factors.

Advanced Technology

Call centers are equipped with advanced technology that can streamline call handling and improve the overall customer experience. This includes tools such as IVR systems, call recording and monitoring, and customer relationship management (CRM) software. These technologies can help your business better understand your customers' needs and preferences, leading to more effective and efficient call handling.

Conclusion

In conclusion, call centers offer numerous advantages including a high level of professional service, scalability, enhanced customer satisfaction, and advanced technology. These benefits can help your business provide a better customer experience, increase loyalty, and ultimately lead to increased revenue and growth.

If you're in need of a reliable answering service and call center, look no further than our team at Hit Rate Solutions. We are a highly trained call center that is eager to handle all of your needs. Reach out to us today to see how we can help!

FAQ

What's the difference between a call center vs. a contact center?

Call centers primarily handle inbound and outbound calls on behalf of a business. Contact centers handle a broader range of customer communication channels, such as email, chat, social media, and SMS in addition to calls. Contact centers offer a more comprehensive solution than call centers as they enable businesses to interact with customers on their preferred channels of communication. They also provide insights through analytics that can be used to improve the customer experience and inform business decisions.

Who serves customer complaints better?

In general, a call center is better equipped to handle customer complaints than an answering service due to its specialized training, advanced technology, and ability to provide personalized solutions to customers' needs.

How do call centers operate their tech support center service?

Many call centers operate their tech support center service through advanced technology and specialized training for their agents, allowing them to handle complex technical issues and provide efficient and effective solutions to customers.

How does the call length affect the overall customer experience?

Longer call durations can negatively impact the overall customer experience as customers may become frustrated with long wait times and extended call handling.

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