What is cost per call?

Cost per call (CPC) is a metric used in contact centers to measure the average cost incurred for handling a single customer interaction or phone call. It is a critical financial and operational indicator that helps contact center managers and organizations assess the efficiency and cost-effectiveness of their customer service operations.

To calculate the cost per call, you typically divide the total expenses associated with running the contact center by the total number of calls or customer interactions handled during a specific period. This calculation takes into account various direct and indirect costs, including:

1. Labor Costs: These include salaries, wages, and benefits for customer service representatives (CSRs), supervisors, and other contact center staff involved in handling calls.

2. Technology Costs: Expenses related to contact center infrastructure, including hardware, software, telephony systems, and customer relationship management (CRM) tools.

3. Overhead Costs: Indirect costs such as rent, utilities, office space, and administrative expenses that support the contact center’s operations.

4. Training and Development Costs: Costs associated with training and ongoing development of CSRs and other staff members.

5. Maintenance and Support Costs: Expenses for maintaining and supporting the technology and equipment used in the contact center.

6. Outsourcing Costs: If a portion of the contact center’s operations is outsourced to third-party providers, the fees paid to these providers would be factored into the cost per call.

7. Other Miscellaneous Costs: Any additional costs related to contact center operations that are not covered by the above categories.

The cost per call metric is essential for contact centers and organizations for several reasons:

1. Cost Control: It helps organizations identify areas where cost savings can be achieved, leading to more cost-efficient operations.

2. Performance Measurement: Cost per call is a key performance indicator (KPI) used to evaluate the financial performance and productivity of the contact center.

3. Budgeting and Planning: It assists in budgeting and forecasting for contact center operations and allows organizations to allocate resources effectively.

4. Benchmarking: Comparing the cost per call to industry benchmarks or competitors can provide insights into the competitiveness of the contact center.

Efforts to reduce the cost per call often focus on improving processes, optimizing resource allocation, and enhancing technology to increase efficiency without compromising the quality of customer service.

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