Are you looking to start a customer service business? here’s a step-by-step guide to starting a customer service consulting business with no money or experience.
As a budding entrepreneur with a background in human resources and customer service, one way to start your way into the business world is to start your own customer service consulting firm. You can be sure that your services will always be in demand not only by small organizations, but also by large companies operating in different industries.
Customer service consulting firms are organizations that specialize in providing business consulting and training services. for various industries related to the management of their customers.
Setting up a customer service consulting firm isn’t too expensive except for the money it takes to rent and furnish office space. Running this type of business requires training as a consultant and it is indeed a very lucrative business in the United States, Canada, Australia. and in the UK due to a commitment to continued business growth, including a customer base.
If you decide to start a customer service consulting company, you need to make sure that you have done a thorough feasibility study and market research. This will allow you to find businesses in the community or city with the right demographics; a place where you can easily receive your services.
If you are considering starting your own customer service consulting firm but don’t know how to do it, you should consider how to go through this article; he will certainly give you the advice and guidance you need.
Launch of a business customer service department. The Complete Guide
- Industry overview
Customer service consulting firms are related to the field of marketing and customer service consultants, and this industry includes marketing strategy and market development consulting services, business consulting and training services. customer service, sales and development management consulting services, strategic management consulting services and other marketing management consulting and services.
The marketing and customer service consultant industry provides operational advice and assistance to clients on a variety of issues. marketing issues including campaign strategy and planning, price and sales forecasting, effective customer management and other related services that can help increase customer retention in the organization where they work .
Marketing and Customer Service Industry This is a very large industry which is active in countries like United States of America, United Kingdom, France, India, Italy, China, Switzerland, Australia and Canada, among others.
Statistics show that in the United States of America alone there are about 214,320 registered and licensed customer service consulting firms employing about 402,225 people, and the industry is roaring loud. the amount of $ 55 billion per year.
The industry is expected to grow at a growth rate of 6.2% per year in 2013 and 2021. It is important to note that no company can boast of having the largest market share in the industry.
A recent report released by IBISWorld shows that over the past five years, the industry has benefited from increased business profitability and increased advertising spending, which has boosted demand for consulting services. As the economy improves, customers are spending more on advertising, especially on new digital channels.
As a result, many businesses have turned to marketing professionals to help them navigate the world of online advertising and sales. The strong demand led to a steady 6.2% annual growth in industry revenue, reaching $ 55 billion in 2021. At the same time, the number of enterprises increased by 3.4% and the number of 5.1% employees.
The fact that customer service consulting companies are easily found in cities across the United States of America does not by any means make the industry oversaturated. The fact that there are organizations and businesses that still need professional customer service advice from time to time makes business green.
Some of the factors that motivate entrepreneurs to start their own customer service business, despite the fact that the business is relatively competitive, is that the business is profitable and can be started anywhere in the world.
Building a customer service consulting firm requires professionalism and a good understanding of the customer service industry. Additionally, you will need to obtain the required certifications and licenses and meet the standard for such a business before you can open a customer service consulting company in the United States. The good news in this industry is that there is an easily accessible market for their services.
Start customer service consulting Market studies and feasibility studies
- Demography and psychography
The demographic and psychographic makeup of those seeking the services of a customer service consulting firm includes businesses related to clients.
So if you want to define the demographics of your customer service business, you need to encompass everything. This should include small to medium-sized businesses and large corporations looking to expand their customer base, retain old customers and better serve their existing customers, and this could be inside and outside the city in which you are operating who could pay for your services.
List of niche customer service consulting ideas you can specialize in
Most consulting firms that work with clients typically use general services, which are standard consulting services. the company should offer. So it seems that there are no niches in the industry. But on the other hand, some customer service consulting firms may decide to tackle certain key or niche areas such as;
- Strategic client management consulting
- Telemarketing advice center
- Marketing and sales consulting services for clients
Level of competition in customer service consulting
Competition in customer service consulting goes beyond the competition between customer service consulting companies in your area; You are expected to compete with other consulting firms capable of advising and offering business-to-business solutions. So, it would be correct to say that the competition in customer service consulting is relatively fierce.
Regardless of the level of competition in the industry, if you have done your due diligence and promote your brand and service or business correctly, you will always make progress in the industry. Just make sure you can deliver business solutions to your customers as is. When it comes to managing their customers, you can deliver top quality customer service, get feedback from your customers, and know how to reach and reach your target market.
List of famous brands in the industry
Here are some of the leading customer service consulting companies in the United States of America and around the world;
- Boston Consulting Group
- Anchor Consultants, Ltd.
- Fresh concise ideas
- Amarna Group
- Ledgeview Partners
- Morgan Hill Partners
- Moran Consulting
- The DiJulius Group
- Ernst Young review
- Infosys advice
- KPMG Notice
- Company Advisory Board
- PA Advisory Group
- Slalom advice
When it comes to starting a customer service consulting company, all you need to do is get a feasibility study and market research right before you start a business. It should be noted that business customer service consulting is not for beginners; it is aimed at professionals who have the necessary experience to offer solutions to organizations regarding the management of their clients.
Starting this type of business necessarily means that you will obtain the necessary professional degrees and certifications, as well as good working relationships with stakeholders from various industries. If you are already a major player in the customer service consulting industry before deciding to start your own business, this may not be a problem.
Depending on what scale you want to start from, you might need a few thousand dollars to manage it, and at the same time, you might need a lot less than that if you decide to start. a home business, in a virtual office. or a shared office.
You need to hire the services of experts to help you with a complete economic and cost analysis as well as the profitability of your business wherever you want to start a business. If you do your economic and cost analysis right before you start your business, you may not have to linger for long before you break even.
Start your own customer service consulting firm from scratch or buy a franchise
When it comes to starting this type of business, you have to pay to buy the franchise from a successful customer service consulting firm rather than starting from scratch. While it is relatively expensive to buy a franchise from a reputable customer service consulting company, it will certainly pay off in the long run.
But if you really want to build your own brand after proving your worth in the industry, you can just start your own customer service consulting firm from scratch. Starting from scratch, you will be able to conduct extensive market and feasibility research before choosing a location to start a business.
In case you didn’t know, most customer service consulting firms started from scratch. and they were able to build a strong commercial brand. Success in business requires dedication, hard work and determination.
Threats and potential challenges you will face when opening a customer service review
If you decide to start your own customer service consulting firm. One of the main challenges that you are likely to face is the presence of well established customer service consulting firms, as well as other related consulting and consulting firms that offer the same services that you intend. to offer. The only way to avoid this problem is to create your own market.
Some other threats that you are likely to face when a customer service consulting company operates in the United States are adverse government policies, a competitor in your area of operation, and a global economic downturn that could affect your business.
First steps with clients. Legal advice in business matters
- The best legal entity to use in this type of business
If you are planning to start a customer service consulting company, the entity you choose will determine the size of the business.
You can choose a general partnership or a limited liability company for your customer service consulting firm. Generally speaking, a full partnership should have been the ideal business structure for a small customer service consulting firm, especially if you are starting out with moderate start-up capital.
But if you intend to grow your business and have customers across the United States of America and other countries around the world, choosing a full partnership is not an option for you. Limited Liability Company, LLC will cut it for you.
LLC training protects you from personal liability. If something is wrong with the business, only the money you invest in the limited liability company is at risk. This is not the case with general partnerships. Limited liability companies are simpler and more flexible to operate and you do not need a board of directors, shareholders’ meetings or other management formalities.
Here are some of the factors to consider before choosing a legal entity for your customer service consulting firm; limitation of personal liability, ease of transfer, acceptance of new owners, investor expectations and of course taxes.
If you take the time to research the different legal entities that your customer service consulting firm has, you will agree that this limited liability company is the best fit. You can start this type of business as a Limited Liability Company (LLC) and turn it into a “C” or “S” corporation in the future, especially when you plan to go public.
Switching to a “C” or “S” company will give you the opportunity to grow your customer service consulting firm to compete with the major players in the industry you may receive capital from venture capital firms, you will have a separate tax structure and you can easily transfer the ownership of the business.
Attractive business name ideas suitable for a customer service consulting firm
When it comes to choosing a name for your business, you need to get creative because the name you choose for your business will go a long way in creating a perception of what the business stands for. a customer service company, here are a few catchy names you can choose from:
- McIntosh Jason Co® Customer Service Consulting, LLC
- Thomas Randel ® Customer Service Consulting, LLC
- Ferdinand McFarlane ® Customer Service Consulting, LLP
- Larry Tyler © Customer Service Consulting, Inc.
- Harrow Smiths Associates® Customer Service Consultants, TOO
- Jude Stevenson® Customer Service Advisory Group
- East Coast® Customer Service Consulting, LLC
- Customer Service Consultants Phil Rowland Co, LLP
- Globe Cubes® Consulting, Inc. customer service.
- Customer Service Consulting Shavonne Pearce®, Inc.
In the United States of America and most countries around the world, you cannot do business without some of the basic insurance policies required by the industry you are targeting. work with. Therefore, it is imperative to budget for insurance policies and perhaps consult an insurance broker to help you choose the most suitable insurance policies for your business.
Here are some of the top insurance policies to consider when buying if you want to open your own customer service consulting firm in the United States of America;
- General insurance
- Risk insurance
- Financial reinsurance
- Health insurance
- Liability insurance
- Workers compensation
- Accident insurance
- Group insurance for business owners
Protection of intellectual property / registered trademark
If you are considering starting your own customer service consulting firm, you are usually required to file an intellectual property / trademark protection application as the nature of the business allows you to challenge organizations and claims. individuals in court for illegal use of your company’s intellectual property.
Also, if you want to protect your company logo and other documents or software that are unique to you, or even laugh at the concepts of multimedia production, you can apply for intellectual property protection. If you want to register your trademark, you must initiate the process by filing an application with the USPTO.
Do i need professional certification to get started in customer service?
Along with timely and results-oriented counseling, professional certification is one of the main reasons some customer service consulting firms stand out. If you want to make an impact on the customer service consulting industry, you should strive to obtain all the necessary certifications in your area of specialization. The certification validates your competence and shows that you are highly qualified, engaged in your career and up to date in the market.
Here are some of the certifications you can aspire to if you want to run your own customer service consulting firm;
- Certificate in Customer Service Management – APCSC
- Certified Customer Service Professionals
- Certified Customer Service Professional (CCSP) | MedCerts
- Diploma in management
Please note that you cannot successfully run a customer service consulting company in the United States without acquiring professional certifications and business licenses, even if you have sufficient customer service consulting experience.
A list of legal documents required to run a customer service business.
The Necessity The required documentation that exists before starting a business in the United States of America cannot be overstated: it is the fact that you cannot conduct business in the United States without proper paperwork.
If you do this, it won’t be long before the long arm of the law reaches you. Here are some of the basic legal documents you need to put in place if you want to legally operate your own customer service consulting firm in the United States of America;
- Registration certificate
- Federal taxpayer ID
- State permit
- Commercial license and certification
- Business plan
- Non-disclosure agreement
- Employment contract (letters with proposals)
- Operating Agreement for LLC
- Insurance policy
- Contractual consultation documents
- Apostille (for those intending to work outside the United States of America)
- Company charter
- Insurance policy
- Memorandum of Understanding (MoU)
Financing of your customer service activity, advice
In addition to the required certifications and practical experience, starting a customer service consulting company can be profitable. Securing a standard office in a good business district, equipping the office, and paying your employees is part of what will require a significant chunk of your start-up capital.
The first thing to consider when it comes to business financing is writing a good business plan. If you have a good working business plan document, you might not have to work on your own before convincing your bank, investors, and friends to invest in or partner with you.
Here are some of the options you can explore when looking for seed capital for your client service consulting firm;
- Collect money from personal savings and sell personal stocks and property
- Raise funds from investors and business partners
- Sale of shares to interested investors
- Apply for a loan from your bank
- Transfer your business idea and apply for business grants and seed funding from donor organizations and angel investors
- Source of loans on favorable terms from your family and friends.
Choosing the right location for your customer service business
Customer service consulting firms and most types of consulting services require that you physically see your clients, therefore, they must be in a good location; a place conducive to human and car traffic, and a place at the epicenter of business if you really want to target multiple customers and maximize your profits.
Just because you can run your customer service consulting firm from any part of the world doesn’t mean that location has little impact on the success of a customer service consulting firm. If you’ve taken the time to research the industry, you’ll find that customer service consulting firms and associated businesses pay high rents to stay in a bustling business district.
It’s important to note that a well-located business center doesn’t come cheap, so you should be able to set aside enough leasing / rental funds within your budget. If you’re new to the dynamics of choosing a business location like a customer service consulting firm, you’re free to chat with a business consultant or real estate agent who fully understands your city to help you out.
Of course, you wouldn’t want to locate this type of business on the outskirts of town. Your customers should be able to find your office with little or no difficulty.
Ultimately, before deciding on the location of your customer service consulting company, make sure you have done a thorough feasibility study and market research first. It cannot be excluded that you will come across a similar business that will simply close the store in the place where you want to open yours.
Here are some of the key factors to consider before choosing a location for your customer service consulting firm;
- Location demographics
- Request services from consulting firms for on-site customer service
- Location availability
- Number of customer service consulting firms and related businesses on site
- Local community / state laws and regulations
- Transport, parking and security
Getting started with technical support and customer service advice >
This type of business does not require any special hardware except dedicated customer service software and other appropriate software and social media management software. You will also need computers / laptops, internet, telephone, fax machine and office furniture (chairs, tables and shelves).
When it comes to choosing between leasing or leasing office space, the size of the customer service consulting firm you want to start and your overall budget for the business should influence your choice. If you have enough capital to run a standard business, you should consider leasing space for your office.
When it comes to the number of employees you’re supposed to start a business with, you’ll need to consider your finances before making a decision. On average, you will need a CEO / Senior Consultant, Customer Service Consultants and Coaches, Administrator, and Human Resources Manager. business developers, accountant, customer support manager / front desk employee.
you will need a minimum of 5-10 key employees to effectively run a mid-range but standard customer service consulting firm. Please note that in some cases you are expected to hire experts to help you serve certain high profile clients, especially those of large companies.
Customer service consulting service delivery process
The way customer service consulting firms operate varies from agency to agency, but ideally, a customer service consulting firm should first establish a solid business profile before looking for clients.
When customers hire your services, they expect you to provide them with a solution to their pressing business problems in terms of effectively managing their customer base, expanding their customer base, and training staff in customer service. customer base.
Depending on the agreement between the two parties, you are expected to receive measurable indicators that will show that the professional advice you have given or the training you offer is actually working. In some cases, the agreed consulting fee will be paid in part, and in some cases, it will be paid in full and in advance.
It is important to clarify that a customer service consulting firm can decide to improvise or adopt any process and business structure that will guarantee it, as well as efficiency and flexibility of return on investment.
Starting a customer service business. Marketing plan
- Marketing ideas and strategies
As a customer service consulting firm, you will need to prove your worth before hiring corporate organizations. So, if you are considering starting your own customer service consulting firm, it will pay you to start a successful career in the industry.
Organizations will only hire your services if they know they are going to solve their business problems. So, when developing strategies for your customer service consulting firm, make sure you create a compelling personal and business profile.
In addition to your qualifications and experience, it is important to be clear about what you have been able to accomplish in the past, in relation to consulting in the customer service industry and the organizations in which you have worked. . This will help you increase your chances in the market when looking for clients / investors.
Note that in most cases when looking for clients for companies and other institutions you will be asked to defend your proposal and therefore you should be quite good at presentations. Here are some of the platforms you can use to promote your customer service consulting firm;
- Introduce your business by sending cover letters along with your brochure to all businesses inside and outside the city you operate in that may be able to afford your services
- Promote your business in relevant magazines, radio stations and TV channels (lend yourself to customer service consultations related to talk shows and interactive sessions on TV and radio)
- Register your business in local directories / yellow pages
- Attend trade shows, seminars and trade shows for customer service, etc.
- Create different packages for different categories of customers to get advice for them
- Take advantage of online opportunities to promote your business
- Join local chambers of commerce and industries around you for the primary purpose of networking and marketing your services; Most likely, you will receive referrals from these networks.
- Using the services of marketers and business developers for direct marketing
Factors to Help You Get the Right Product Price
One of the key factors that will help you to offer your services or sell your product at a very attractive price is ensuring that you have a source of start-up capital from sources that will not pressure you or generate increased interest. Please note.
Another strategy to help you provide your services at the right price is to minimize your operating costs and focus your efforts on marketing and promoting your brand. Besides the fact that this strategy will help you save on costs, it will also help you get the right prices for your products and services.
You can also try to work with independent contractors and marketers as much as possible; this will help you save on the salaries of sales and marketing managers.
Possible competitive strategies to win over your competitors
The customer service consulting industry is a competitive industry and you need to come up with a unique and very creative strategy to be able to outsmart your competition in the industry. Part of what you need to do to stay competitive in the industry is to continue to offer solutions to business problems as this relates to effectively managing their customers and ultimately increasing sales. .
Organizations always look to you if they know you have a better option, especially when it comes to getting results. Another key strategy you can adopt is to make sure that your organization is well positioned and that key members of your team are highly qualified and certified in terms of job responsibilities.
Possible ways to increase customer loyalty for this specific activity
When it comes to running a business, no matter what industry you decide to pitch your tent in, this is one of the easiest ways to increase customer loyalty and possibly attract new customers. it is producing results and always satisfying your customers. If your customers are happy with your service, it is unlikely that they will be able to find another service or product provider.
Statistics show that one of the main reasons customers choose an alternative service provider is a decline in quality. Another reason is poor customer service. If you can continue to improve the return on investment (ROI) of organizations that hire your services, you won’t have a hard time retaining your customers.
Some of the very important things that you will need to do in order to achieve this is to track progress, results or results in order to improve them quickly depending on the circumstances. When it comes to managing your customers and building customer loyalty, you need to buy dedicated CRM software.
With a personalized CRM system, you can easily keep in touch with your customers (you can do quick surveys, you can introduce them to new products and prices without any difficulty, you can congratulate them on their birthdays and other anniversaries, you can track success, you can send personalized sms and emails and most importantly, you can easily get feedback from them).
Strategies to increase your brand awareness and strengthen your corporate identity
If you are in business and have no intention of building brand awareness and spreading your corporate identity, you need to be prepared to embrace what the company means to your business. One of the secrets of big business is that they are willing to spend a fortune to increase brand awareness.
If you intend to start a customer service consulting company and then take the company out of the city where you intend to become a national and international brand, you must be prepared to spend money. money to promote and promote your brand.
When promoting your brand and corporate identity, you should use both print and electronic media. as well as social networks (internet). In fact, using the internet and social media platforms to promote your brands is beneficial, and it is also quite effective and widespread.
Below are the platforms you can use to promote your brand and to promote and market your customer service consulting firm;
- Advertise on customer support services and check relevant magazines and newspapers, radio and TV stations.
- Encourage word of mouth use from your loyal customers
- Use on the Internet and social networks such as; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote your business.
- Make sure to place your banners and billboards in strategic positions throughout the city
- Distribute flyers and leaflets to targeted areas in and around our region.
- Promote your business on your official website and apply strategies that will help drive traffic to your site
- … Make sure all your employees wear your branded shirt or cap on a regular basis.