Q
Problem solve Get help with specific problems with your technologies, process and projects.

# Measuring cost per call

## One reader asks, "Should I be worried if my cost per call has risen \$0.51 in two months?" Lori Bocklund explains the calculation behind cost per call.

"Cost per call" -- what is this a true measurement of? Should I be worried if my cost per call has risen \$0.51 in two months?
Cost per call (CPC) is one of several key performance indicators (KPIs) call centers use today. It is certainly a measurement of efficiency, but can reflect other things as well. It can't be viewed in a vacuum. Rather, you need to consider it in the context of your business goals, and your initiatives based on those goals. For example, a company with a big push to grow revenue per customer may happily see cost per call increase if corresponding measures of revenue per call or per customer are increasing at a greater rate. Using CRM tools and processes, the customer service reps (CSRs) may be spending more time with customers to up-sell, cross-sell, and optimize the relationship.

Having said that, an increase of \$0.51 in two months could be significant, and could be bad. You need to first check that the calculation has not changed. There is no single "right" way to calculate CPC, so make sure the same factors are being included (labor - loaded or unloaded, network, real estate, utilities, IT, and other overhead are all possibilities) and the same formula is being used as before. Then, do a root cause analysis to determine where the increases are occurring.

As part of the process, assess the reasons for the change, and whether they appear to be a temporary anomaly or some sort of trend that you need to reverse. An example would be if you have many new hires/trainees and they're still getting settled in, you probably need not panic. If you have a significant drop in call volume and you haven't decreased any of your fixed costs, that alone may account for the change. Make a plan to either address issues or monitor key elements as a result of your analysis.

This was last published in April 2004

#### Have a question for an expert?

Get answers from a TechTarget expert on whatever's puzzling you.

You will be able to add details on the next page.

#### Start the conversation

Send me notifications when other members comment.

## SearchContentManagement

• ### Alfresco cloud migration service moves content off premises

With new cloud migration services, Alfresco promises to move content from IBM, SharePoint, Documentum and other legacy ECM ...

• ### Using AI in content creation can streamline publishing

Companies using AI in content creation can generate short-form material automatically, which frees up humans to handle more ...

• ### New Contentful CMS targets content delivery for retailers

Contentful's content infrastructure is a CMS that intends to bring more flexibility and benefits than a traditional or headless ...

## SearchUnifiedCommunications

• ### Slack resets passwords possibly compromised in 2015 hack

Slack has reset passwords for 1% of users after uncovering new information regarding a 2015 hack of its systems.

• ### Private channels slated to launch in Microsoft Teams this fall

Private channels are scheduled to launch in Microsoft Teams this fall. The feature is the most demanded by far on the Teams user ...

• ### Stand-alone vs. integrated collaboration: 3 factors to consider

Moving from legacy communications is no small task. Three factors must be considered to ensure successful adoption of new ...

## SearchDataManagement

• ### Snowflake product VP expounds on data warehouse for the cloud

In this Q&A, Christian Kleinerman, vice president of product development at cloud data warehouse vendor Snowflake, talks about ...

• ### RavenDB Cloud automates database management

RavenDB's managed cloud database service, RavenDB Cloud, intends to automate security processes, reduce overhead and cater to ...

• ### Big data containers gain wider appeal in system deployments

This handbook examines the use of Docker containers in Kubernetes clusters to run big data systems and offers insight on ...

## SearchEnterpriseAI

• ### Enterprise consumer relationships are building trust in AI

Transparency is an increasingly important component of consumer trust. If you want to win over consumers whose data is being ...

• ### AI in financial services helps speed consumer interaction

By using AI in finance, financial organizations are able to speed processes that otherwise would require more manual input from ...

• ### How AI in physical security makes public places safer

Deep learning-based tools are increasingly finding a home in physical security to enhance the protection of real-world assets and...

## SearchERP

• ### Screen maker uses financial analytics to foresee future

Polydeck Screen Corp., a company that provides screen media solutions, adopts cloud-based management software that enables it ...