Call center service charges normally fall in the range of $1.15 to $0.75 per minute, averaging $0.95 per minute. Some services offer a selection between "shared" or "dedicated" agents. Your billing structure may differ based upon the type of agents you get. The client only pays for inbound calls on a per-minute basis, ranging from $0.90/minute to $1.50/minute.
"Shared Inbound" is defined as services in which a pool of agents answer calls for 1-3 dozen clients. The client then pays only for the time used on a per-minute basis.
Determining Call Center Costs
How Do Call Centers Determine Cost per Call?
A general formula for measuring the cost per call metric in inbound call centers is as follows:
Cost per call = Total cost of all calls / Total number of calls.
For outbound calls, a more suitable formula:
Cost per call = Total operational costs / Number of sales or leads.
Understanding Cost per Call
When looking at cost per call (CPC), it’s important to understand that it doesn’t describe the total amount of expenditure but how expenditure relates to the workload. CPC measures the overall efficiency, including the ratio of agents to calls. The basic formula to calculate cost per call is: total operating budget of your call center for a certain period / number of calls during the period.
Additional Factors Affecting CPC
Outlined below are additional factors that add to your cost per call apart from employee wages:
- One-time setup costs like office space infrastructure, calling hardware, servers, PRI, and telephony deposits.
- Depending on the purchase model, license subscriptions (annual/monthly) for agents and supervisors for call center management software need recurring investments from the business owner.
Determining cost per call helps identify bottlenecks and inefficiencies in call center processes. Calculating the cost per call metric can provide valuable insights that will help you while making data-driven and strategic decisions about the expansion of your contact center operations, adoption of new technologies, or any other areas. Return on investment (ROI) is the foundation of every business decision.
Additionally, cost per call can help call center managers identify opportunities for improvement, reducing costs by optimizing resource allocation and processes.
Call Center Cost Analysis
How Much Does a Call Center Cost per Agent?
On average, an outsourced call center costs $3,400 per agent per month. For four agents, that’s $163,200 per year, so outsourcing saves around $100,000 annually.
Factors That Affect Call Center Costs
- Employee wages
- Office infrastructure
- Hardware/software costs
- Service level targets
- Overhead
Additional factors that may raise costs include attrition and inefficient hiring and training practices.
Cost Reduction Strategies
- Enhancing hiring, training, and coaching
- Monitoring activities
- Improving scheduling adherence
- Increasing first call resolution rates
- Minimizing attrition
- Switching to VoIP systems
Pricing Calculation
Call centers use hourly or per-minute billing:
- Hourly rates range from $16.50-$63 per agent.
- Per minute rates range from $0.90-$1.50.
Tracking Efficiency with Metrics
CPC indicates efficiency and lower CPC means greater efficiency. It is used to optimize resource allocation, reduce call lengths, and streamline workflows. Calculating cost per call provides insights to improve operations and guide strategic decisions.