Understanding Call Center Cost Per Call (and Why You’re Measuring It Wrong)

TL;DR: Understanding call center cost per call highlights budget control but can overlook crucial areas like agent satisfaction and customer loyalty. Focus beyond just cost by integrating modern solutions to balance efficiency with quality service.

Your Cost Per Call Might Be Lying to You

What is Cost per Call (CPC)?

Call Center Cost Per Call (CPC) is one of the most tracked metrics in customer support. It’s easy to calculate (total cost/# of calls), quick to benchmark, and gives an impression of efficiency. But here’s the catch: optimizing for a lower CPC doesn’t always mean your support operations are getting better.

In fact, focusing too narrowly on reducing CPC can backfire—hurting agent morale, customer satisfaction, and even increasing churn. Let’s break down what CPC really measures, where it falls short, and how modern CX leaders are moving beyond it.

The Illusion of Simplicity

Cost per call is often seen as the ultimate measure of call center efficiency. It highlights how much each customer interaction costs, seemingly providing a clear picture of performance. But is it really that simple?

The Argument for Cost Control

Supporters claim that low cost per call indicates better budget control and a leaner operation. Benchmarks suggest costs range from 2.70 to 5.60 dollars or 3 to 7 dollars, encouraging teams to streamline workflows and minimize wasted time.

The Risk of Oversimplification

Critics argue that focusing solely on cost per call can mislead, especially for industries aiming to build trust and loyalty. Prioritizing this metric might underfund crucial areas like agent coaching and high-quality support software, potentially increasing turnover and decreasing customer satisfaction.

Quality vs. Quantity

High-quality calls may take longer and cost more but often result in happier, loyal clients. An agent who spends extra time resolving concerns can forge lasting connections, leading to repeat business. Cutting costs per call might eliminate these valuable gains.

Rethinking Cost per Call

Cost per call offers a quick snapshot but isn’t a complete measure of your team’s performance. Balancing cost with agent well-being and customer satisfaction ensures long-term success, keeping your contact center strong and your customers happy.

The Hidden Expenses Costing You

But Cost per Call isn’t just about the agent’s time. Things like agent compensation or outdated hardware might initially reduce call center costs, but can increase turnover and hurt customer satisfaction. Here are some hidden expenses that could undermine your budget:

• Undercompensated Staff: Low wages may save money short-term but increase turnover, leading to higher hiring and training costs.
• Outdated Equipment: Having agents access multiple, complex systems can extend call times, increase operational expenses, and hurt customer satisfaction.
• Ballooning OpEx: To compensate for these long handle times, ongoing costs like salaries and software licenses can snowball if not managed.
• Office Space Costs: Large or inefficient spaces increase rent and maintenance costs, raising your overall expenses.
• Impact on Customer Experience: System issues or unprepared agents can frustrate customers, increasing repeat calls and costs.

Traditional Metrics vs. Modern Solutions

Many teams rely on Cost per Call as a primary success measure, but this can overlook customer sentiment and agent effectiveness. Modern solutions offer a more comprehensive view.

Cost-Focused Approach

A cost-driven model minimizes call time and expenses, but may lead to frustration and repeated interactions, undermining customer satisfaction and agent morale.

Beyond Cost: Modern Solutions

Today’s platforms integrate customer sentiment, agent quality scores, and real-time coaching. For example, Calendly’s 23% cost reduction shows how modern tools can optimize efficiency without sacrificing satisfaction.

Why It Matters

Focusing on one cost figure can miss deeper insights. By measuring sentiment and coaching agents, contact centers can enhance relationships and performance, reducing turnover and boosting loyalty.

Comparison of Traditional vs. Modern Approaches

A Real-World Approach to Lowering Costs

Balancing budget with top-notch service is tricky when calls cost $2.70 to $5.60. Here’s how to manage costs smartly:

• Problem: High costs and repeated calls inflate expenses.
• Solution: Upgrade call center software for better first-contact resolution and use skill-based routing to direct calls efficiently.
• Tactics:

• Move to cloud-based solutions to cut infrastructure costs.
• Offer callback features to reduce abandoned calls.
• Schedule agents based on forecasts and provide self-service options.
• Automate post-call summarization and other processes to reduce agent downtime.

Result: Advanced analytics can pinpoint areas for improvement, keeping budgets controlled and agents and customers satisfied.