Cost Per Case (CPC) is the average cost incurred for each support contact or case handled by a support team. This metric includes both fixed costs (such as office space and technology expenses) and variable costs (such as scheduled labor and unscheduled overtime). It is sometimes referred to as "cost per contact."
How to Calculate Cost Per Case
To calculate the cost per case you can use the following formula:
For example, if the total cost of handling all cases in a month is $50,000 and there are 200 cases, the cost per case would be:
Why Cost Per Case Matters
Understanding CPC is crucial for several reasons:
Budgeting and Financial Planning: Helps in accurately forecasting and managing support costs.
Performance Measurement: Provides insights into the efficiency and effectiveness of the support team.
Cost Control: Identifies areas where costs can be reduced without compromising service quality.
Factors Influencing Cost Per Case
Several factors can impact CPC:
Case Complexity: More complex cases may require more time and resources.
Support Team Efficiency: The productivity and skill level of the support team.
Technology and Tools: The efficiency of the tools and systems used to handle cases.
Volume of Cases: Higher volumes can lead to economies of scale, reducing the average cost per case.
Strategies to Improve Cost Per Case
To reduce CPC, consider the following strategies:
Optimize Processes: Streamline workflows to handle cases more efficiently.
Invest in Training: Enhance the skills of the support team to improve productivity.
Leverage Technology: Use advanced tools and automation to reduce manual effort.
Monitor and Analyze: Regularly review CPC data to identify trends and areas for improvement.
Related Terms
Cost Per Contact: Another term for Cost Per Case, emphasizing the cost associated with each customer interaction.
First Call Resolution (FCR): A metric that measures the percentage of cases resolved on the first contact.
Average Handle Time (AHT): The average time taken to handle a case from start to finish.
Conclusion
Cost Per Case is a vital metric for managing and optimizing the efficiency of support operations. By understanding and controlling CPC, organizations can improve their support services while maintaining cost-effectiveness.
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