What is Cost per Call?

Cost per call is calculated by dividing the total operating costs of a contact centre by the number of calls handled within a specific period.
Operating costs can include agent salaries, technology expenses, telecommunications fees, software licensing, training, rent, and overheads.

Formula:
Total Contact Centre Operating Costs ÷ Total Number of Calls Handled = Cost per Call

For example, if a contact centre spends £120,000 in a month to handle 40,000 calls, the cost per call would be £3.00.
This figure provides insight into how efficiently the centre uses its resources and helps managers identify areas where cost reductions or productivity improvements can be made.

In customer service and call centre environments, cost per call is influenced by factors such as:

Average Handle Time (AHT) and agent productivity.
Workforce scheduling and shrinkage.
Technology efficiency (automation, IVR, AI, etc.).
Call volume fluctuations and occupancy rates.

While reducing cost per call is a common goal, it should never come at the expense of service quality or customer satisfaction.
The most effective contact centres find a balance between operational efficiency and customer experience outcomes.

Why Cost per Call Matters

Cost per call provides valuable visibility into the financial performance of contact centre operations.
It helps managers make data-driven decisions about staffing, technology investment, and process optimisation
while ensuring that customer service standards remain high.

Related Terms:

Back to the Glossary