February 2003, V. 5, No. 1

Spotlight on Customer Loyalty: Outsourcing Quality Assurance By Debra Andrews

Growing up in a suburb of Maryland, my mother used to cook dinner every single night. We maybe got to go out to a restaurant a few times per year. As a response to my numerous complaints about boring home-cooked meals (I would kill for one now!), my mother used to say, “Why go out for hamburger when you can have steak at home.”

Having been in the business world for over 15 years, I often think of my mother’s bothersome cliché when considering hiring external vendors to perform what was traditionally an internal function. I debate whether my company can do it “better, cheaper, faster” or whether the service provider can bring value to the (dinner) table.

When considering outsourcing a business function, such as quality assurance, it is important to understand the following concepts:

• The nature of outsourcing
  
• Reasons for outsourcing
  
• How to select an outsourcing vendor

The nature of outsourcing

Outsourcing takes place when an organization transfers the ownership of a business process to a supplier. Typically, in outsourcing relationships, buyers of outsourcing services do not instruct the supplier on how to perform its tasks. Instead, they focus on communicating what results or business outcomes they want to buy. To realize the true value of outsourcing, the buyer must leverage the supplier’s expertise and economies of scale by not dictating how a process should be performed.

Reasons for outsourcing

In the past, companies turned to outsourcing to cut costs. In today’s world, with rapid business and technological change, outsourcing is viewed very differently -- it is considered a means to become more adaptable to changing business conditions. There are three primary reasons for outsourcing a business process:

• Ability to focus on core business processes
  
• Adaptability to market conditions
  
• Ability to bring about business transformation

Focus on core business processes

If a function is not a core competency of the customer, the internal resources required might be better redirected to more important tasks. A core business process forms the heart and soul of a company. It is a process that differentiates a company from its competitors and is a revenue generator. In other words, it is a process that demands attention and capital.

Just because a process is non-core, however, does not mean it is “non-important”. Quality Assurance tends to be a very important, but a non-core business process. Just how important is QA – 68% of customer attrition results from customer service issues. Ideally, it is also a process that can be easily outsourced because buyers of QA services can accurately describe it and clearly measure it.

Adaptability to market conditions

Today’s companies operate in a business climate that is more challenging, global, competitive and unpredictable. It is critical for companies to remain flexible and adaptive, which is possible through outsouricng.

Many firms have made the mistake of staffing up during robust economic cycles, only to have to lay-off a large percentage of their workforce when the market turned sour. Training is also one of the first things cut out of corporate budgets during a downturn. The net result is a demoralized workforce that aren’t receiving the necessary skills development to remain competitive.

Outsourcing helps to keep staffing levels flexible. It also allows companies to tap into personnel that are highly-trained in the latest techniques and technology for a particular business process. For example. LRA Worldwide only hires quality assurance consultants with at least five years of experience. We continuously provide training to our employees in a university-style setting throughout the year. We also embrace the Internet and customized database applications, which allows our clients to access the latest technology without making a substantial capital investment.

Ability to bring about business transformation

A few years ago, companies wanted service providers to be “cheaper, better, faster”. Now they tend to emphasize “better, faster, cheaper”. Buyers of outsourcing services are looking for strategic partners that will help improve and transform important non-core business processes. LRA’s mission is to help its client improve quality and build customer loyalty. Many of our clients rely on our expertise in developing their standards, inspection programs and customer satisfaction and loyalty tracking systems. In most cases, they clearly define what business goals they would like to achieve, but allow us to guide them on how to get there.

Selecting a vendor

There are many factors to consider when selecting an outsourcing vendor, which include the following”

• Credibility and Trust: How long has the vendor been in business? Who are their clients? Can they provide referrals?
  
• Scope and Scale of Services: Can the vendor provide the scope and scale of services and service levels that you need?
  
• Accountability: Is your vendor willing to be accountable for pre-determined business outcomes? Do they assign dedicated personnel to your account?

LRA Worldwide is a leader in providing outsourced customer loyalty solutions. We are strategic partners with our clients and never lose sight of our goal, which is to help our clients improve quality and service delivery. Whether our clients engage us for one service or outsource their entire QA process to us, we maintain the same level of dedication to excellent service delivery.

To discuss the benefits of outsourcing quality assurance, please contact Debra Andrews at dandrews@lraworldwide.com.

LRA Worldwide Introduces:
SurveySmart^SM for Employees; Are your employees satisfied and engaged?

The value of a committed and loyal workforce cannot be overstated. Nearly 75% of a company’s expenditures are devoted to its people. LRA Worldwide is a leader in providing employee engagement solutions for helping companies leverage employee feedback to better manage human capital.

LRA’s extensive market research expertise and leading-edge technology come together in SurveySmart^SM, LRA’s one-stop Internet-powered survey solution. We deliver to companies a complete turnkey solution for managing all of their employee satisfaction tracking needs. SurveySmart^SM includes a powerful Web-enabled reporting suite, allowing clients to collect, view and access critical employee survey responses, results, analysis and trend data in real-time, 24/7, anywhere in the world.

LRA Worldwide experts guide you through the entire survey process, from design to implementation. We can easily customize SurveySmart^SM to meet a company’s or a particular industry’s unique needs. SurveySmart^SM includes all of the following benefits and technology:

• Qualitative Research & Survey Design - we begin with qualitative research (using our eFocus Groups) to identify any organization-specific issues. These issues, when combined with our library of core questions, generate a customized employee survey.
  
• Measurement Methodology - next, anonymous employee feedback is collected through either our Web-enabled eSurvey application or traditional collection modes.
  
• Web-based Reporting & Analytics - finally, the results are examined using advanced analytical techniques. Key drivers of engagement are identified. Perhaps the most valuable component of the employee engagement solution is action scorecards that are created for each workgroup within the organization (e.g. manager, department, division), sample size permitting. Organizations use the scorecards as a performance metric for managers who have several direct reports.

For further information on SurveySmart^SM for Employees, or to arrange an online demonstration, please contact Debra Andrews at dandrews@lraworldwide.com.

LRA News
New Online Demonstration of SurveySmart^SM for Customers

In our September, 2002 eNewsletter, LRA profiled SurveySmart^SM for Customers, LRA’s one-stop Internet-powered customer satisfaction survey solution. This turnkey solution includes:

• Survey Design – complete assistance with questionnaire design
  
• Measurement Methodology – selecting and implementing the appropriate measurement methodology
  
• Web-based Real-Time Reporting Suite – view survey results, trends and reports
  
• Advanced Analytics – analysis that provides in-depth insight into the survey results and data

If your company is committed to measuring and acting upon customer feedback, we invite you to view our interactive, online presentation of SurveySmart^SM for Customers. Please click on the link below to be directed to a registration page.

Click here to see an online demo.

As a qualified registrant, you will receive a password, allowing you to access this very informative demonstration. Look to LRA Worldwide for all of your company’s customer satisfaction and loyalty tracking needs. If you have questions or require further information on the new online demonstration of SurveySmart^SM for Customers, please contact Debra Andrews at dandrews@lraworldwide.com.

About LRA Worldwide

LRA Worldwide is a leading global provider of integrated customer loyalty solutions. LRA’s services, systems and technology focus on a single business outcome: helping client’s build and retain customer satisfaction and loyalty. LRA Worldwide’s proprietary customer loyalty solutions ensure that companies provide their customers with consistent, memorable and distinctive brand experiences. Products and services include Balanced Scorecards, Customer Satisfaction and Loyalty Surveys, Customer Service Training, Employee Satisfaction and Engagement Surveys, Quality Assurance, Audit, Inspections & Mystery Shopping Services. The company focuses on industries and sectors where “hospitality” and service excellence are central elements of the brand. Operating in over 90 countries, LRA has a broad global reach with regional offices located in the U.S., Europe, Middle East & Africa and the Asia-Pacific regions. For more information, visit the company’s website at www.lraworldwide.com.

For further information, please contact:

Contact: Ms. Debra Andrews
Tel: +1.215.957.1999, ext. 26
Fax: +1.215.957.6570
E-mail: dandrews@lraworldwide.com

[go back to top]