3 Biggest Pain Points and Strategies for BPO Contact Centers: Insights from Industry Leaders

The BPO (Business Process Outsourcing) industry is complex and constantly evolving, particularly for contact centers focused on lead generation and customer acquisition. We asked three BPO leaders about the biggest challenges their companies face and the strategies they use to succeed. Here are the top insights they shared:

1. Finding New Clients: Consistently acquiring new clients is one of the biggest challenges for BPOs, as demand fluctuates significantly depending on the business cycle, such as during open enrollment periods.

2. Employee Turnover: Employee turnover remains a major pain point, which leads to increased recruitment and training costs.  This is often due to the challenging nature of the work, limited career growth, and competition from other call centers offering better compensation. 

3. Data Availability: The success of a contact center relies heavily on having a steady flow of quality leads. BPOs often face issues when lead data runs dry, leaving agents without prospects to contact, which ultimately impacts productivity and client satisfaction.

Employee turnover is a common challenge for contact centers, and to address it, BPOs have implemented several retention strategies:

• Incentive programs: Offering performance incentives helps motivate staff and increase job satisfaction.

• High performing technology: Using contact center software built for sales and lead generation will improve efficiency and productivity, leading to improved agent performance and thereby, morale.  Your technology partner should provide excellent customer support and training, and tools that employ automations, AI, customizable campaign management, caller ID reputation management, voicemail detection, detailed KPI monitoring and data analytics, dynamic scripting, and, importantly, compliance support features.

• Employee amenities: Some BPOs invest in building a great facility that includes perks like a game room, on-site massage therapists, and even supplementary services like manicures and physician visits. These amenities contribute to a positive work environment.

• Transportation and private insurance: Providing forms of transport to and from work and private health insurance are additional perks that help retain staff.

• Community culture: Creating a fun culture, hosting company parties, and encouraging employees to bring in friends as potential hires helps build a sense of community and loyalty.

The ability to clarify and meet client expectations is key to a BPO's success. BPOs are now taking a more comprehensive approach:

• Clear communication: Maintaining open communication with clients is crucial to understanding their needs.

• Key performance Indicators (KPIs): Instead of focusing on a single KPI, BPOs are broadening their scope to track multiple metrics that clients care about—such as average handle time, customer satisfaction scores, conversation rates, and sales per billed hour.

• Tech that drives performance: Recommend technology that will best serve the client goals (which may be a different technology than the one they are currently using). Trying to save money with cheap technology isn’t a sound strategy. By employing a high-performing technology that thrives on scale and delivers efficiencies, you will lower your cost per acquisition and have more fruitful campaigns. 

Technology is evolving rapidly, and BPOs need to stay ahead:

• Trialing new software: Many BPOs trial different CRMs, dialers, and other technologies to determine which systems work best for them and their clients.

• Attending conferences and networking: Staying informed about industry trends by attending conferences and talking with other BPOs and partners helps companies stay competitive.

• Technology recommendations: BPOs actively engage with clients about the tech being used, often suggesting improvements to enhance efficiency and performance.

Compliance is a major concern for BPOs, particularly as regulations around data use and lead generation become more stringent.

• Acting as compliance guardians: BPOs are increasingly seen by clients as their compliance partners, adapting to regulations and helping clients stay within legal boundaries.

• Generating organic leads: With market shifts, BPOs are focusing on generating their own leads organically rather than relying solely on purchased lists or cold calling, and transitioning to inbound inquiries where possible.

The BPO industry is continually changing, requiring companies to adapt to new technologies, work-from-home models, and evolving client needs. Flexibility, innovation, and a proactive approach are key to maintaining success in this dynamic environment.

BPOs in the contact center space face challenges like client acquisition, employee turnover, and data availability. Addressing these pain points requires a focus on client communication, employee retention, regulatory compliance, and adapting to technological advancements. By adopting these strategies, BPOs can improve their service offerings, meet client expectations, and create a positive work culture that encourages growth and success.