How to Calculate and Reduce Cost Per Call in a Call Center?

The cost per call is the total expense of each inbound or outbound call handled by the agents in a call center. It is an important metric for evaluating a call center's cost-effectiveness and operational efficiency.
 

Calculating and tracking cost per call allows a call center to understand the expenses associated with each call. It enables them to estimate future expenses and help make informed decisions about budget planning and resource allocation.

The industry benchmark expects a call center’s average cost per call to range between $2.70 and $ 5.60. However, due to evolving calling costs, the actual cost can vary based on call duration, service provider, agent skill level, and economies of scale.

For example, a small company prioritizing deep customer relationships invests in skilled agents and customized solutions, leading to a higher than average cost per call. On the other hand, a company that handles simple customer queries requires agents with minimal specialized skills and could have lower than average cost per call.

To calculate the cost per call, divide the total cost of the call center over a specific period by the total number of incoming and outgoing calls handled during the same period. You can calculate the cost weekly, monthly, or yearly per your preferences or requirements.

Mathematically,
 

Where, 

• The total call center means the operating expenses, including agents' salaries, infrastructure, maintenance, etc.
• The total number of calls handled represents all calls, including answered, transferred, terminated, or any calls involving call center agents.

The cost per call for a call center depends on factors such as agents' wages, the technology used, call volume, and economies of scale.

A call center needs to hire and pay employees to handle calls, incurring expenses for recruitment and training. If the employee turnover rate increases, the company must repeat the process, which impacts its overall operating cost.

The higher the call volume, the more agents and infrastructure the call center requires. You must upgrade the equipment and invest more to maintain quality and capacity.

Each call attended in the call center is billed by the minute or second. A longer call means more resources are consumed, increasing overall operating expenses.

Outdated technology requires frequent maintenance and inefficiencies, leading to higher expenses. On the other hand, modern technology comes with automation and self-service options, which increase the agent's productivity and reduce call handling costs.

Well-trained and skilled agents can handle calls more efficiently. They are capable of effectively addressing customers' issues, leading to shorter call durations and fewer callbacks.

If a call center operates on cloud-based call software, it must pay recurring fees for each service it uses. Subscription costs vary depending on the features a business requires—plans with basic functionality are cheaper, while those with advanced tiers cost more.

Adopting cloud-based technology helps lower costs by eliminating upfront hardware expenses and allowing you to pay only for the services you use. You can utilize AI-powered automation to reduce costs further as it handles repetitive tasks like call routing, data entry, and answering routine queries.

Additionally, investing in agent training helps them handle calls faster and professionally, reducing average handling time (AHT) and improving first call resolution (FCR), which lowers cost per call.

Cloud-based technology is managed and hosted online, eliminating the need for costly on-premises hardware, software, or IT infrastructure.

Moreover, it offers a pay-as-you-go pricing, allowing call centers to incur costs for only those services they actually use. This flexibility lets you optimize your call center operational cost and avoid overpaying for unused capacity.

Utilizing AI tools like chatbots and virtual assistance automates the common tasks and queries, reducing the cost of additional staffing. These technologies handle general questions, update data, and analyze customers' sentiments, empowering support teams to resolve complex issues with fewer resources.

An advanced call routing efficiently routes calls to the best-fitted agent, leading to fewer transfers and callbacks, which minimizes the cost per call. Initially, connecting callers to the right agent decreases the call handling time, which ultimately lowers calling costs.

Providing self-service tools like FAQs, knowledge bases, and chatbots, customers can find answers and resolve issues without speaking to a live agent. It decreases the volume of calls requiring human intervention and associated costs.

A structured training program creates confident, efficient agents. They need less supervisor support and make fewer mistakes, which reduces repeat calls, contributing to long-term cost savings.

Utilizing advanced workforce management tools, businesses can ensure that staffing levels are aligned with call volumes. Forecasting the peak hours, WFM tools enable call centers to create efficient schedules that align staffing levels with demand, minimizing idle time.

Evaluating call cost represents how effectively your business is handling customer interaction. Each resource or service you use to interact with the client influences the call center cost per call. Despite these factors, using the right customer service solution, modern technology, and skilled manpower helps businesses maximize their resources and reduce call costs.
 

The average cost per call at the call center ranges between $2.70-$5.60.

Call center cost per call is calculated by dividing total call center costs by the total number of calls handled in the specific time period.