Cost per Contact is a metric used in the Customer Support Center to assess the efficiency of the center's operations. It is calculated by dividing the total annual operating expense of the center by the annual inbound contact volume. The operating expenses include various elements such as employee salaries, overtime pay, benefits, incentive compensation, contractor expenses, facilities costs, telecom expenses, desktop computing, software licensing, training, travel, office supplies, and miscellaneous expenses. The inbound contact volume includes interactions from various sources, including live voice calls, voicemail, email, web chat, and other channels.
Why it is very Important:
Cost per Contact is considered one of the most crucial metrics for Customer Support Centers. It serves as a key indicator of how efficiently the center is conducting its business. While a higher-than-average cost per contact may not be a concern if accompanied by higher quality levels, a low cost per contact is not necessarily favorable if achieved at the expense of call quality or service levels. Therefore, tracking and trending Cost per Inbound Contact on a monthly basis is essential for optimizing operational efficiency and maintaining a balance between cost and service quality.
Key Correlations with other Metrics:
Cost per Inbound Contact is strongly correlated with several other contact center metrics, including:
Agent Utilization: Agent Utilization measures the percentage of time agents are actively engaged in handling customer interactions. A high cost per contact may indicate underutilized agents or inefficient resource allocation.
First Contact Resolution Rate: The First Contact Resolution Rate assesses the contact center's ability to resolve customer issues during the first interaction. A correlation with Cost per Contact can highlight the impact of resolution efficiency on overall operational costs.
Average Handle Time: Average Handle Time measures the average duration it takes for agents to handle customer interactions. Cost per Contact may be influenced by how efficiently agents manage their time during customer interactions. assistance.
Average Speed of Answer: The Average Speed of Answer measures the average time a customer has to wait before connecting with an agent. Cost per Contact may be impacted by the efficiency of managing call queues and reducing wait times.
Take Way:
Cost per Inbound Contact provides a comprehensive overview of the financial efficiency of a Customer Support center. By understanding its correlations with other key metrics, Customer Support center managers & Team Leaders can make informed decisions to optimize costs while maintaining or improving service quality, ultimately enhancing the overall customer experience. Regular monitoring and analysis of this metric are integral to achieving a balanced and effective Customer support center operation.
On-demand Training Programs Available for Customer Support Employees:
Customer Support Agent Foundation Course
Customer Support Team Leader Mastery Certification
Customer Support Business Planning for Leaders
Customer Support Technology & Finance
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