The Average Call Center Cost Per Call (CPC) is an important number. It reveals the financial outlay for each customer. Every business wants to lower this number. A high CPC means that something isn’t working well. A low CPC means that the business is running well and making money.
To lower the average call center cost per call, you need to take a strategic approach. You need to go after the root costs, not just the symptoms. This in-depth guide explains the CPC formula in detail.
This guide provides you with proven strategies to reduce the expenses associated with operating your call center.
How to Use the Cost Per Call Formula
It’s simple to figure out the cost per call:
CPC = Total Monthly Operating Costs/Total Monthly Call Volume
Everything is included in the total operating expenses. This includes pay, benefits, supervision, technology, rent, and utilities for agents. You can lower CPC by either lowering the Total Operating Costs or raising the Total Call Volume (efficiency), or better yet, doing both at the same time.
Strategy 1: Optimizing Agent Labor Costs
The primary cost is labor. Effective management of agent time can immediately reduce the cost per call.
Lower the Average Handle Time (AHT)
The total time an agent spends on one call is called AHT. We include talk time, hold time, and post-call work. Even cutting AHT by a few seconds on thousands of calls saves a lot of money. The most important thing is to make it more efficient. Eliminate unnecessary steps. Make sure that agents can obtain information right away.
Improve First Call Resolution (FCR)
If the agent can’t resolve the problem on the first call, the customer will call back later. This means that one problem costs two or more calls. It is very important to have a high First Call Resolution (FCR). It eliminates the cost of making the same call again. Agents need to have the power and the tools to correct problems right away.
Optimize Workforce Management (WFM)
Agent schedules must match the number of calls exactly. Having too many staff members means that some of them will be sitting around doing nothing. Too few staff members can cause a lot of frustration and costly callbacks. WFM tools use data to make accurate predictions about how many calls will come in.
They make effective use of staff time. This makes the most of every hour that a paid agent works.
Strategy 2: Using Technology for Self-Service
The least expensive call is the one that never happens. Redirecting simple calls to automated channels greatly lowers the overall number of calls.
Improve Interactive Voice Response (IVR)
The IVR system needs to be easy to use and work well. Customers should be able to obtain answers to common questions, like how to verify their balance or find out when the store is open, without having to talk to a person.
Make the IVR menu make sense. Please ensure the choices are clear. This process stops agents from having to make unnecessary transfers.
Implement Effective AI Chatbots
Chatbots and self-service portals that use AI answer common questions right away. They offer help around the clock with no extra cost for each interaction. These AI tools keep simple web and phone questions from reaching the human team. They make sure that only people handle difficult, valuable conversations.
Strategy 3: Using Technology to Cut Infrastructure Costs
The costs of technology are changing. Making smart choices here will lower the total monthly operating cost.
Use Cloud-Based Solutions
Stop using expensive, outdated hardware that is on-site. Cloud-based call center solutions use a subscription model that can grow. This technique gets rid of the need for big capital investments in servers and upkeep. Cloud solutions lower the cost of your IT and infrastructure right away.
Automate the Quality Assurance (QA) Manual
A team of supervisors needs to listen to calls for QA. This costs a lot of money in labor. AI monitors every call without requiring your intervention. It points out problems with tone, issues, and compliance risks. This automation makes the QA team smaller. It gives you better information faster.
Integrating Automated Qualification
Automating the first screening of incoming calls or leads saves agents time right away. Tools like Bigly Sales use AI voice agents to qualify leads and initiate the initial follow-up. They find well-qualified leads who are ready to talk. This procedure makes sure that the valuable human sales agent only works on leads that are most likely to turn into sales. This approach makes the cost per click (CPC) for acquisition calls go down a lot.
Strategy 4: Dealing with the Real Reason for Calls
Many calls are unnecessary. They happen because of problems in a different part of the business. Getting rid of the call driver gives you the most long-term savings.
Perform Root Cause Analysis
Regularly look at call driver data. Find out the three most common reasons customers call. Is it mistakes in shipping? Are the prices difficult to understand? Is there an issue with the checkout process on the website? Thereafter, you need to work with the right department, such as operations, IT, or marketing, to correct the problem at its source. Fixing the problem eliminates the call costs for good.
Optimize Product Documentation
Make sure that product documentation and FAQs are easy to locate online and are clear and complete. People call when they can’t locate the information they need. Offering many self-help resources cuts down on calls. It gives the customer the tools they need to resolve their problems.
Summary of Cost Reduction
Reducing the average call center cost per call is achieved by a dual focus. You need to get the most out of your expensive human agents by using better metrics like FCR and AHT. You need to use self-service and cloud technology well to cut down on the need for people to become involved. This makes the service operation scalable, efficient, and profitable.
FAQs About Reducing Average Call Center Cost Per Call
Q1. What is the greatest risk when you try to lower the cost per call?
A: The greatest risk is giving up quality for speed. Agents often render inadequate service when they rush the call to meet a lower AHT goal. Such behavior makes customers frustrated and makes them call again and again. The total cost of the interaction goes up, in fact.
Q2. What effect does working from home have on the cost per call?
A: The cost per call goes down a lot when people work from home. It gets rid of extra costs like rent for the office, utilities, and maintenance. It also increases the number of talented people who are available. These changes could mean that agents in expensive cities make less money overall.
Q3. Is a low cost per call always a beneficial thing?
A: Not all the time. If your CPC is very low, it could mean that you don’t have enough staff. This leads to long wait times and many people leaving. Only when a low CPC is associated with high customer satisfaction scores can it be considered beneficial.
Q4. What is the range of Average Handle Time (AHT) that is acceptable?
A: AHT can be entirely unique depending on the industry and how complicated the call is. For simple transactions, the AHT could be between 3 and 5 minutes. Technical support calls could last anywhere from 8 to 12 minutes. Instead of strictly comparing your AHT to outside benchmarks, work on improving it over time.
Q5. How long does it take to save money after putting a new plan into action?
A: You can save money right away by using self-service deflection and better managing your workforce. You can save on labor costs in three to six months by making better use of your time and keeping employees. It usually takes one to two years to achieve the full return on investment from technology.
Q6. What do most businesses do wrong when they try to save money on their call centers?
A: A common mistake is concentrating solely on reducing Average Handle Time (AHT) without considering First Call Resolution (FCR). Agents have to hurry when you aggressively demand shorter calls. They don’t always correct the customer’s main problem. Such behavior makes customers angry and makes them call back right away. The cost of making multiple repeat calls quickly outweighs the time saved on the first, rushed call. Strategies for saving money that work: always discover a way to get things done quickly and well.
