Jose Herrera is the CEO and co-founder of Horatio, a business process outsourcing company that builds dedicated, high-performing customer support teams, acting as a true extension of its clients’ organizations. Horatio primarily serves healthcare, fintech, e-commerce, and retail, and prides itself on delivering personalized, human-first service at scale while also integrating the latest technologies to ensure efficiency.
Gabe Larsen chatted with him during the CX Summit about scaling a customer experience team. Let’s dig into Jose’s insights!
This interview has been edited for clarity.
Gabe Larsen: I know you’re constantly talking to people about how to do things better, faster, and more efficiently. Let’s dig into that. What’s one of the first things brands should think about when trying to scale?
Jose Herrera: The first thing is making sure you have the right processes and workflows optimized for efficiency. That means identifying high-volume, repeatable inquiries, like order status or refund requests, and making sure customers can access those answers through self-service or chatbot features. That way, your team can focus on higher-impact issues. But it all starts with training, documentation, and having the right systems in place.
Gabe Larsen: Love it. Do you find that a lot of companies don’t have that locked in? That the processes aren’t really documented, and it ends up being a bit of a free-for-all?
Jose Herrera: Yes, absolutely. One of the first things we do when working with a client is audit their entire operation. We identify what’s missing and how to build for scale. That includes documenting processes, standard operating procedures, understanding their tech stack, and knowing how to use it. Most importantly, we set up dashboards to track key metrics like agent performance, CSAT, and more so we can continuously improve based on data.
Gabe Larsen: I bet those audits are eye-opening. I imagine one of the big outcomes is helping them visualize their processes. Whether you work with Horatio or not, it seems like a self-audit is a must. You’ll find some strengths, but also some surprising gaps.
Jose Herrera: Exactly. Sometimes we see companies that scaled quickly but never implemented a CRM like Kustomer. They’re still using Gmail or spreadsheets. So we help them professionalize and build structure. Tools like Kustomer give you visibility into your support operation’s impact and allow you to act on customer feedback more effectively. Without that structure, it’s really hard to scale.
Gabe Larsen: Totally. There’s a right time for everything—starting with spreadsheets is fine, but at some point, you’ve got to evolve. That Gmail example is great. I’ve seen some pretty creative setups, but it’s usually held together with duct tape. Eventually, it breaks. So that’s point one: get your processes optimized. What’s the next big conversation you’re having with companies trying to scale?
Jose Herrera: The second big one is about people—specifically, hiring the right talent.
Gabe Larsen: This one never gets old. Even with all the AI talk, I still believe people are at the heart of great customer service. What are some of your tips for hiring and structuring teams?
Jose Herrera: First, we align hiring with the specific tasks agents will handle. But more importantly, we look for people who are passionate about the brand. If someone isn’t excited about your product, they won’t deliver great service. So we try to match agents with companies where they align with the mission and values. They really become an extension of the client’s team.
Gabe Larsen: That’s such an underrated insight especially in e-commerce. You can’t fake product passion. When someone genuinely loves the product, the customer experience is night and day better. How do you think about structuring roles within the team?
Jose Herrera: We encourage clients to define roles clearly by tiers—tier 1 for general inquiries, tier 2 for more complex issues, and potentially a VIP or escalations team. That last team often has product expertise and upselling skills to resolve issues with empathy. Thinking through these layers helps build a more scalable and efficient team.
Gabe Larsen: If a company’s scaling fast, what structure do you typically see? Is it tiered support? Product specialization? How do you recommend approaching it?
Jose Herrera: We usually start with tier 1, then build up from there. We like to promote from within—agents who start at tier 1 can move up to tier 2 or 3. We also look at ratios—not just for team leads or managers, but also quality and training roles. Continuous coaching and upskilling are essential, so we make sure each team has a dedicated trainer.
Gabe Larsen: That’s great. Where do you land on trainer ratios?
Jose Herrera: It depends on the complexity of the product. For general e-commerce, one trainer for every 15–20 agents is usually fine. For more complex industries like healthcare or finance, we recommend closer to 1:10 or even 1:15.
Gabe Larsen: What about management ratios?
Jose Herrera: Typically one manager for every 10 to 12 agents. That allows for a solid level of personalization and support.
Gabe Larsen: When should a company introduce a tier 2 or tier 3 structure?
Jose Herrera: Usually when more complex issues start surfacing—things that take longer to resolve but are still important. That’s when you know it’s time to add a new tier.
Gabe Larsen: So, tier 1 handles five-minute issues, tier 2 takes care of the five-to-fifteen-minute range, and tier 3 deals with anything more technical or time-consuming?
Jose Herrera: Exactly. Tier 2 might handle account issues, billing disputes, or bugs. Tier 3 is for product experts—either internal specialists or people serving VIP customers who expect white-glove treatment. We’re seeing more demand for that tier 3 level, especially in competitive e-commerce environments.
Gabe Larsen: Got it. What’s another key consideration when scaling?
Jose Herrera: The biggest topic right now is AI - specifically, figuring out where it fits within your CX strategy. There’s a lot of noise about AI replacing humans, but I strongly believe in the importance of human connection. What we’re seeing is that AI helps agents become more efficient, but it also creates more work than people realize.
Gabe Larsen: Say more about that. Why do you think AI is creating more work?
Jose Herrera: AI helps us personalize interactions and analyze customer history faster, but agents still need to refine responses to ensure they feel authentic. Predictive analytics can flag churn risks, but then someone has to follow up. QA is a great example—we used to audit just a sample of tickets. Now AI can review them all, which is great, but it results in more flagged tickets and more coaching sessions. So yes, AI creates efficiencies, but it also demands more oversight, training, and refinement.
Gabe Larsen: That’s such a good callout. AI creates new opportunities but also more to manage. You mentioned several use cases. Where are you seeing the most value right now?
Jose Herrera: Agent assist tools are providing real value: summarizing conversations, suggesting responses, and improving workflows, especially for digital channels. Voice is still more complex, and we’re not quite there yet with AI in that space. But the Copilot-style tools are definitely where we see things headed.
Gabe Larsen: Any final thoughts or one tip you’d leave for someone trying to scale their CX org?
Jose Herrera: Don’t overlook culture and retention. Invest in career growth, training, and employee engagement. Keeping your top talent and maintaining that human connection is essential for delivering a great customer experience. Never forget that your people are at the heart of it all.
Closing thoughts
Hearing from top industry experts like Jose is a great way to guide your team’s success. Looking to scale your customer service team with AI-powered tools? Consider first how your team will adopt them and the impact they might have so you can get the implementation right. Check out our AI Agent Reality Check report for a pulse check from CX leaders.
Ready to explore how Kustomer can help your CX organization scale? Talk to our team today!
