It can be difficult to measure the cost per call metric in large contact centres due to its sheer complexity. You will undertake a variety of operational expenses to keep the contact centre running, and as long as you are reaching your service level targets, does it really matter?
The answer is a resounding YES.
In addition to service level or performance metrics that help you boost agent productivity, topline metrics like cost per call reflect how profitable the contact centre really is, and its value to the business as a whole.
Calculating Cost Per Call
Your cost per call in an inbound organisation is the total operational spends you are undertaking to enable a single telephonic interaction. It is calculated as follows:
(Variable labour costs + fixed labour costs + outsourced labour costs + technology costs + networking infrastructure costs + facility costs + chargeback for other departments like HR, travel, accounts, etc.) ÷ total number of calls handled in the same period of spending.
Outbound contact centres might want to divide total spending against the number of leaves generated/converted to arrive at the most accurate reflection of costs incurred.
Reasons Why Cost Per Call Matters
- It helps you select the best site for an in-housecontact centre – Different locations will come with different opex indices as rent, average labour costs, energy, and other factors vary widely across locations. By calculating cost per call, you can select the most efficient location for your contact centre
- You can choose between in-house and outsourcing – Most outsourcing decisions are informed by cost per call calculations. If operational spends are too high in your in-house location (particularly for a single site organisation), outsourcing mightbe the way to go. You can also weigh the cost per call for different outsourcing vendors as a key parameter for assessment
- It will alert you to ageing infrastructure – Ageing infrastructure is a common cause for high cost per call. Lack of automation, complete reliance on live agents, and the failure to go omnichannel will drive up your per call expenses – this requires immediate intervention. Benchmark your contact centre against competitors to deploy advanced systems on time and keep costs to a minimum
- It quantifies performance for non-support business leaders – Cost per call is an essential performance KPI that needs to be shared with the larger organisation in order to budget for future contact centre investments. You can leverage this KPI tojustify investments, workforce decisions, and technology requirements.
What is a Good Cost Per Call to Aim For?
As mentioned, contact centre operating costs will vary enormously in different parts of the globe. However, it is helpful to keep in mind the component ratios and ensure that they don’t exceed the average/acceptable threshold.
Typically, your cost per call will comprise:
- 70-73% of variable labour costs (paid hourly)
- 5-7% fixed labour (monthly wages)
- 3-5% tech support
- 2-6% technology (depreciation and maintenance)
- 3-5% networking infrastructure
- 3-8% facilities (rent, utilities, maintenance)
- 5-6% miscellaneous overheads
Not only should your cost per call be optimal, but the component ratios should also be within these thresholds to ensure ROI.
