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Cost per Contact

What is Cost per Contact?


Cost per contact is the cost it takes to handle one call. It’s the sum of all costs involved in running a contact center divided by the total number of contacts handled.


This includes costs associated with:

  • Labor: This includes salaries and additional benefits offered to agents, supervisors, and other individuals who directly support the call center.
  • Recruitment: Total cost of recruiting, onboarding, and training new employees.
  • Telephony: Cost of your phone system.
  • Software: Software licensing for tools like workforce management and CRMs.


Additionally, you also need to consider fixed costs like office space rent and maintenance, internet charges, and refreshments.


Here’s the formula:

Cost per Contact = (Labor Cost + Recruitment Cost + Cost of Tools + Other Operational Costs) / Total Number of Calls Handled


Once you collect all cost-related data, you can easily spot areas to cut down costs while ensuring quality customer service.


To reduce cost per contact, you could:

  • Optimize the IVR (Interactive Voice Response) so that it provides short and relevant menu options.
  • Program IVR to disconnect the caller until there is an agent available to speak with them.
  • Utilize skill-based routing to provide the best-suited agent for a quick resolution.
  • Use call center workforce optimization tools like Talkdesk and Playvox.
  • Provide self-service options such as customer self-service portals and live chatbots.


You could also take some proactive measures such as:

  • Ensure that during onboarding, agents receive quality training to handle calls in minimal average handling time.
  • Schedule your agents efficiently while considering peak call times and agents’ adherence level.
  • Use real-time call monitoring to provide constructive feedback or help out agents solve complex issues.

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