Cost per Contact

What does cost per contact mean? 

Cost per contact is a key metric in contact centers that measures the total cost incurred for each individual customer interaction or contact, regardless of the communication channel used. This metric is broader than cost per call as it encompasses all types of contacts, including phone calls, emails, chats, social media interactions and more. 

Cost per contact considers all direct and indirect costs incurred in a contact center, including: 

• Agents' salaries and benefits 
• Technology costs 
• Day-to-day operational costs 
• Training and development costs 
• Quality assurance costs 

Once the above cost components are calibrated, calculate your cost per contact using the formula: 

Importance of monitoring cost per contact 

Measuring and controlling cost per contact can help you with: 

• Comprehensive cost measurement by providing a complete view of the cost efficiency across all communication channels, not just phone calls. 
• Budgeting and forecasting by assisting in creating more accurate budgets and forecasts by considering all types of customer interactions. 
• Performance benchmarking by allowing comparison with industry benchmarks and other contact centers, helping identify areas for improvement. 
• Profitability analysis by imparting an understanding of the overall profitability of customer service operations, especially in multi-channel environments. 
• Resource allocation by ensuring that investments in different channels are cost-effective.