Average Cost per Contact Call Center: All You Need to Know

Greetings, dear reader! In today’s digital age, when companies rely on customer service for survival, call centers play a crucial role in customer satisfaction. But did you know that each call or contact costs the company money? That’s right! The cost of each contact in a call center is known as the Average Cost per Contact (ACC). In this article, we’ll explore everything you need to know about Average Cost per Contact Call Center, including its definition, factors affecting it, and ways to reduce it.

Introduction

Before we dive deep into the Average Cost per Contact, let’s understand what it means. In simple terms, Average Cost per Contact is the total cost incurred in handling customer inquiries and complaints per contact. These contacts include calls, emails, chats, and social media interactions.

The cost per contact is calculated by dividing the total cost of operating the call center by the number of contacts handled during a specific time period. The ACC varies from company to company and is influenced by multiple factors such as call volume, agent productivity, customer satisfaction, and more. Let’s explore these factors in detail.

What are the factors influencing Average Cost per Contact?

There are multiple factors that influence the Average Cost per Contact in a call center. Some of the key factors are:

Factors Affecting ACC

1. Call Volume:

The number of calls received by a call center significantly impacts the ACC. High call volumes translate to more agents required to take up calls, leading to increased costs. On the other hand, low call volumes can lead to underutilized resources, affecting productivity.

2. Agent Productivity:

The productivity of agents has a direct impact on the ACC. Agents who can handle more calls with efficiency and accuracy can help reduce the cost per contact.

3. Training and Development:

Regular training and development programs can help agents improve their skills, leading to better handling of calls, ultimately reducing the ACC.

4. Systems Integration:

Integrating the call center systems with other business systems can help agents access customer information quickly, leading to faster resolution and reduced handling time, thus lowering the ACC.

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5. Customer Satisfaction:

Higher customer satisfaction leads to fewer repeat calls and complaints, effectively reducing the ACC.

6. Outsourcing:

Outsourcing calls to offshore centers can also affect the ACC due to differences in labor costs and exchange rates.

7. Call Center Location:

The location of the call center also affects the ACC due to differences in labor costs, infrastructure, and other factors.

Now that we have explored the factors influencing the Average Cost per Contact, let’s look at how to calculate it.

How is Average Cost per Contact Calculated?

Factor Calculation
Total Cost of Operating Call Center Sum of all expenses incurred during a specific time period, including salaries, rent, hardware, software, and maintenance costs.
Number of Contacts Handled Total number of calls, emails, chats, and social media interactions handled by the call center during a specific time period.
Average Cost per Contact Total Cost of Operating Call Center/Number of Contacts Handled

Now that we know how to calculate the ACC let’s take a closer look at the table above.

The ACC Table:

The table above shows the three factors involved in calculating the ACC. The first factor is the Total Cost of Operating Call Center, which is the sum of all expenses that the call center incurs during a specific period. These expenses include salaries, rent, hardware, software, and maintenance costs.

The second factor is the Number of Contacts Handled, which is the total number of calls, emails, chats, and social media interactions handled by the call center during that specific period.

The third and final factor is the Average Cost per Contact, which is calculated by dividing the Total Cost of Operating Call Center by the Number of Contacts Handled.

Ways to Reduce Average Cost per Contact:

Now that we have explored the factors influencing the ACC and how to calculate it let’s dive into some of the ways to reduce it.

Ways to Reduce ACC

1. Increase Agent Productivity:

Regular training and development programs, coupled with feedback mechanisms, can help agents improve their skills, leading to increased productivity and a reduced ACC.

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2. Implement Self-Service Options:

Offering self-service options, such as chatbots and automated voice assistants, can help customers resolve their issues without having to contact a live agent, ultimately leading to a reduced ACC.

3. Outsource Calls:

Outsourcing calls to offshore centers with lower labor costs can help reduce the ACC.

4. Analyze Data:

Analyzing data can help identify trends, leading to insights that can be leveraged to improve call center performance, ultimately reducing the ACC.

5. Optimize Call Routing:

Routing calls to the right agent based on skills and expertise can help reduce handling time, leading to a reduced ACC.

6. Improve Customer Satisfaction:

Higher customer satisfaction leads to fewer repeat calls and complaints, ultimately reducing the ACC.

7. Implement Cost-Effective Technologies:

Implementing cost-effective technologies such as cloud-based call center software can help reduce hardware and maintenance costs, leading to a reduced ACC.

Frequently Asked Questions:

FAQs

1. What is the difference between ACC and AHT?

ACC is the cost incurred in handling each contact, while AHT (Average Handling Time) is the average time taken to handle each contact.

2. What is a good ACC?

A good ACC is one that is in line with industry standards and does not adversely affect the company’s profitability.

3. How can I calculate my company’s ACC?

Divide the total cost of operating the call center by the number of contacts handled during a specific time period.

4. Can outsourcing reduce the ACC?

Yes, outsourcing calls to offshore centers can reduce ACC due to differences in labor costs and exchange rates.

5. How can I improve agent productivity?

You can improve agent productivity by providing regular training and development programs, coupled with feedback mechanisms.

6. What is the impact of customer satisfaction on ACC?

Higher customer satisfaction leads to fewer repeat calls and complaints, ultimately reducing the ACC.

7. How can I reduce hardware and maintenance costs?

You can reduce hardware and maintenance costs by implementing cost-effective technologies such as cloud-based call center software.

8. How can I optimize call routing?

You can optimize call routing by routing calls to the right agent based on skills and expertise.

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9. What is call center outsourcing?

Call center outsourcing is the process of outsourcing call center operations to a third-party service provider.

10. What are the benefits of self-service options?

Self-service options such as chatbots and automated voice assistants can help customers resolve their issues without having to contact a live agent, ultimately leading to a reduced ACC.

11. What is the impact of systems integration on ACC?

Integrating the call center systems with other business systems can help agents access customer information quickly, leading to faster resolution and reduced handling time, thus lowering the ACC.

12. How can data analysis help reduce ACC?

Analyzing data can help identify trends, leading to insights that can be leveraged to improve call cente
r performance, ultimately reducing the ACC.

13. How can chatbots help reduce ACC?

Chatbots can help customers resolve their issues without having to contact a live agent, ultimately leading to a reduced ACC.

Conclusion:

Conclusion

The Average Cost per Contact is a critical metric that determines the cost incurred in handling each customer contact in a call center. The ACC is influenced by multiple factors such as call volume, agent productivity, customer satisfaction, and more. However, reducing the ACC is possible by implementing various strategies such as training and development, outsourcing, self-service options, and more. Analyzing data and improving customer satisfaction can also help reduce the ACC.

At the end of the day, a reduced ACC benefits both the company and the customer. It leads to better customer satisfaction, productivity, and profitability. So, what are you waiting for? Implement the strategies mentioned above and reduce your Average Cost per Contact today!

Closing Statement with Disclaimer:

The information contained in this article is for general purposes only. The article is not intended to be a substitute for professional advice. The reader is advised to seek professional advice before acting on any information contained herein. The author and publisher of this article are not responsible for any damages or losses arising from the use of the information contained herein.