When Outsourcing is Wrong

Businesses tend to stick with activities that have more return on investment (ROI).

To elaborate the end-to-end value creation process for most product or service based businesses, I’ve classified the activities following stages:

  • Procurement
  • Creation
  • Quality
  • Marketing
  • Sales
  • Customer service

Now that we are on the same page, let me give you an example.

A friend of mine recently shared information about a case where ROI was viewed as top-down (high-priority – procurement and low-priority – customer service).

In this case, a low-cost airline company, saw least ROI in customer service.

Eventually, they outsourced it to a PR firm.

What’s interesting is, the PR firm exhausted maximum time in apologising to the customers of airline company.

One can conclude that custom service (or bottom-up approach) was not a priority.

So, which can be given priority? – Top-down or bottom-up approach?

How businesses can earn trust in the age of social

Social media has enabled many businesses to generate awareness.

While a business may focus on generating awareness, one should never forget that social media is a two way road.

Any customer who is upset with products or services of a brand can go online and share his thoughts.

So, how can businesses maintain their image on social media irrespective of customer experience?

To answer this question, I will share my personal experience.

I placed an order for a laptop online. Since, I wanted customisation, I had to order it directly from the manufacturer’s website.

Due to COVID-19 and India-China relationship, the supply chains were not working at their regular capacity.

I also kept visiting the manufacturer’s website regularly for updates on further delays.

After a few weeks, I saw the manufacturer’s sponsored post on LinkedIn.

I knew the current pain points and decided to share my concerns through a comment.

So, I went ahead and shared a comment to know if there are further delays due to COVID-19 and India-China relationship.

I did not mention my order number or expressed my disappointment due to the delays and shared my comment as a general question.

After few hours, my comment was deleted.

I have written many blogs professionally on tips for businesses to earn trust online in the past and the most important trust-building elements are transparency and online reviews.

By simply deleting the comment, that brand lost a major opportunity.

If they replied, what might have happened?