In today's competitive business landscape, contact centres are under immense pressure to deliver exceptional customer experiences while simultaneously operating with maximum efficiency. This balancing act can be challenging, but it's not impossible. The key lies in understanding and optimizing your operational costs, and one of the most critical, yet often misunderstood, key performance indicators (KPIs) for this is the cost per call (CPC).
This article will delve into the importance of CPC, how to calculate it accurately, and how you can leverage this metric to boost your contact centre's productivity and efficiency. We will also explore how modern solutions, such as AI-powered hybrid models, can dramatically reduce your CPC without compromising service quality.
What is Cost Per Call (CPC) and Why Does It Matter?
Cost per call is a metric that measures the total expense incurred for each call handled by a contact centre. As a leading customer experience platform, Zendesk defines CPC as a way to track "the average cost of each call handled by a call center agent." 1 This KPI is crucial because it provides a clear window into the cost-effectiveness of your operations and is a primary driver for strategic resource allocation.
Similarly, Genesys, a global leader in cloud customer experience and contact center solutions, emphasizes that the CPC metric offers a "critical view into operational effectiveness." 2 By tracking CPC, you can set performance targets, identify areas of overspending, and make data-driven decisions to improve your bottom line.
The True Cost of a Call: More Than Just Salaries
Calculating your CPC isn't as simple as dividing your total agent salaries by the number of calls. A true and accurate calculation must account for a wide range of direct, indirect, and variable costs. Voiso, a provider of contact center software, offers a comprehensive breakdown of these cost components 3:
Cost Category | Cost Drivers | Examples |
Direct Costs | Expenses directly tied to interaction handling | Agent salaries and wages, VoIP/telephony fees, software licenses (CRM, dialer) |
Indirect Costs | Expenses related to support and operational infrastructure | Supervisor and QA team salaries, training and onboarding, office rent and utilities, hardware |
Variable Costs | Expenses that fluctuate with call volume, seasonality, or other factors | Temporary or seasonal staff, multilingual support, compliance and legal oversight |
By considering all these factors, you can develop a much more accurate and insightful CPC calculation.
Beyond the Basics: A More Granular Approach to Cost Calculation
While an average CPC is a good starting point, a truly effective analysis requires a more granular approach. Not all calls are created equal. A simple password reset will have a different cost profile than a complex technical support call. Therefore, it's essential to segment your CPC by various factors, such as:
•Call Type: (e.g., sales, support, billing)
•Channel: (e.g., voice, chat, email)
•Agent Tier: (e.g., junior vs. senior agent)
•Customer Value: (e.g., standard vs. VIP customer)
This level of detail will provide you with a much deeper understanding of your cost drivers and allow you to make more targeted improvements. The industry is also seeing a shift from a simple "cost per minute" to a more outcome-focused "cost per resolution" metric, which factors in the complexity and value of each interaction.
Industry Benchmarks: How Do You Stack Up?
To gauge your performance, it's helpful to compare your CPC to industry benchmarks. According to the 2025 US Contact Center Decision-Makers' Guide from ContactBabel, a leading analyst firm in the contact centre industry, the average cost of an inbound call is $7.16. 4 This is significantly higher than other channels, with calls costing 18% more than email and 42% more than web chat.
These benchmarks highlight the importance of optimizing your voice channel and exploring more cost-effective alternatives for routine inquiries.
How to Reduce Your Cost Per Call (Without Sacrificing Quality)
Reducing your CPC doesn't have to mean cutting corners or compromising on customer service. Here are some strategic ways to lower your costs while maintaining or even improving quality:
•Invest in Agent Training: Well-trained agents are more efficient and effective, leading to shorter call times and higher first-call resolution rates.
•Optimize Your IVR: A well-designed Interactive Voice Response (IVR) system can help route calls to the right agent or department, reducing transfers and improving efficiency.
•Embrace a Remote or Hybrid Work Model: As noted by Zendesk, a remote work model can lead to significant cost savings in terms of office space and utilities. 1
•Leverage AI and Automation: This is where the most significant cost savings can be realized. AI-powered solutions can handle a large volume of routine inquiries, freeing up your human agents to focus on more complex and high-value interactions.
The Power of AI in Optimizing Contact Centre Costs
AI-powered virtual agents and hybrid contact centre models are revolutionizing the industry. Companies like Norango.ai are at the forefront of this transformation, offering a seamless blend of AI and human expertise. Their AI receptionists can handle a high volume of calls 24/7, answering questions, booking appointments, and capturing leads, all at a fraction of the cost of a human agent.
This hybrid approach allows you to achieve the best of both worlds: the efficiency and cost-effectiveness of AI for routine tasks, and the empathy and problem-solving skills of human agents for more complex issues. To see a detailed breakdown of how a hybrid model can impact your bottom line, check out this interactive cost comparison calculator.
Conclusion
In the quest for a more productive and efficient contact centre, the cost per call KPI is an indispensable tool. By understanding what it is, how to calculate it accurately, and how to optimize it, you can unlock significant cost savings and improve your overall performance. As you move forward, consider how a more granular approach to cost analysis and the strategic implementation of AI-powered solutions can help you achieve your business goals and deliver exceptional customer experiences.
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