Running head: BUSINESS PROBLEM SOLUTION DISCUSSION AND RESEARCH
1
3
BUSINESS PROBLEM SOLUTION DISCUSSION AND RESEARCH
Business Problem Solution Discussion And Research
FirstName LastName
University title
Introduction
In the retail industry, customer service refers to the direct one-on-one encounter between the consumer making a purchase and a representative of the firm that is selling it. The majority of traders believe that direct engagement with customers is vital to guaranteeing customer satisfaction and generating business success. Further, client retention is far more beneficial than client acquisition (Rita et al., 2019). Since the outbreak of the Covid-19 pandemic in 2020, Homely, a home décor company’s customer service, has experienced a setback due to the loss of its three prominent customer service representatives when the business shut its operations during the pandemic. A situation that has tasked the supervisor with formulating the best way forward to solve the customer service issue is a critical component of servant leadership.
In determining the best possible solution for this setback, it is critical to analyze the pros and cons of the solutions.
Solution 1: Outsourcing
According to Negriy (2020), outsourcing is a common business technique that will involve homely contracting with another home décor firm to perform customer service duties.
Pros: Offshore services are especially cost-effective. Through outsourcing, homely stands to save on resources as it can hire a trained staff with ready-to-use tools and equipment, a definitive price list, and a guarantee of success.
Cons: To establish a trustworthy reputation for the homely corporation, each operation component must adhere to particular requirements. However, if a customer service department operates remotely, there is no way to ensure that they adhere to firms’ policies.
Solution 2: Automated customer service
According to Leano (2021), customer service automation occurs when an automated system advises clients via AI communication channels such as chatbots, live chats, and other technologies inside a firm or organization.
Pros: The use of technology eliminates human mistakes. Even if a firm recruits the greatest personnel, it must recognize that errors may occur. With the rising technological advancements, homely will need to address and mitigate human mistakes while keeping up with the latest tech practices.
Cons: Most clients prefer a personal touch and the attention of a human agent when they call in for help. Further, automated systems are ineffective at handling complex situations.
References
Daria Negriy. (2020, October 30). Advantages and disadvantages of outsourcing customer service. Retrieved from https://simply-contact.com/pros-and-cons-of-outsourcing-customer-service-post/
Merlene Leano. (2021, July 2). Pros and cons of customer service automation. Retrieved from https://newmediaservices.com.au/pros-and-cons-of-customer-service-automation/
Rita, P., Oliveira, T., & Farisa, A. (2019). The impact of e-service quality and customer satisfaction on customer behavior in online shopping. Heliyon, 5(10), e02690.