Cost Per Call Calculator

| Added in Business Finance

What is Cost Per Call and Why Should You Care?

Ever wondered how much it actually costs every time someone picks up the phone to call your business or customer service line? That's where the Cost Per Call (CPC) comes into play. Knowing your Cost Per Call is crucial for businesses looking to optimize their resources, manage expenses, and improve overall efficiency. Think of it as a thermometer for the health of your call operations.

When you can put a dollar amount on each call, you gain insightful data that helps in decision-making. Better cost management leads to more effective budgeting, which in turn can boost your bottom line.

How to Calculate Cost Per Call

Calculating the Cost Per Call is straightforward. Here's how you do it:

  1. Determine the Total Cost ($): This includes all costs associated with your call operations. We're talking salaries, utilities, software, rent - you name it.

  2. Determine the Number of Calls: This is the total number of calls handled in a given period.

  3. Plug Into the Formula:

[\text{Cost Per Call} = \frac{\text{Total Cost}}{\text{Number of Calls}}]

Where:

  • Total Cost is the all-inclusive cost related to handling calls
  • Number of Calls is the count of calls during the period

Calculation Example

Let's go through an example. Imagine you run a support center, and you've tallied up some numbers:

  • Total Cost: $1,200
  • Number of Calls: 40

First, let's pop these numbers into our formula:

[\text{Cost Per Call} = \frac{1200}{40} = 30]

Your Cost Per Call is $30 per call.

Why It Matters: With this number, you can figure out if you're overspending or if there are efficiencies to be gained. For example, if your cost per call is $30, but your competitors manage the same for $20, you've got some digging and optimizing to do.

Bonus Tips

  • Consider Hidden Costs: Ensure no cost is left unaccounted for. Sometimes those sneaky hidden costs like equipment maintenance and third-party vendor fees can add up.

  • Keep Historical Data: Keeping track of historical data can provide trends that are useful for future planning and budget allocation.

  • Monitor Regularly: Keep an eye on these metrics monthly or quarterly. This helps you adapt and stay ahead of the curve.

Frequently Asked Questions

A good cost per call varies by industry and call complexity. For simple customer service calls, $5-$15 is typical. For technical support or sales calls, $20-$50 may be acceptable. Compare your CPC to industry benchmarks and competitors.

Include all costs related to handling calls such as salaries, benefits, utilities, software licenses, rent, equipment, training, and any third-party vendor fees. Hidden costs like equipment maintenance can add up significantly.

Calculate cost per call monthly or quarterly to track trends and identify opportunities for improvement. Regular monitoring helps you adapt and optimize your call operations before costs become problematic.

You can reduce cost per call by implementing self-service options, improving first-call resolution rates, optimizing staffing schedules, investing in agent training, and using technology to automate routine tasks.