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Table of Contents
Introduction
Nothing is more crucial to running an effective customer support system than managing rates and pricing. Without timely paychecks and worthwhile incentive systems for exceptional workers, employee motivation drops rapidly, and subsequently, call center attrition increases.
Before establishing or revamping your call center, you first have to consider your pricing model and the functions of your call center. Your call center pricing model, rates, and the roles of different call center departments are all interrelated — it’s important to break down the various aspects of running a call center to determine pricing. Not all companies use the same call centers, nor do they all need every service.
Ready to build your call center from the ground up, or look at different ways to restructure your call center? Learn the different factors that determine call center rates and pricing here.
Key takeaways
- Outsourcing savings: Outsourcing your call center can help control costs, especially for businesses that need staffing flexibility.
- Inbound vs. outbound cost differences: Pricing varies between inbound and outbound services. Each serves different business needs and impacts budgets in different ways.
- Many factors affect call center pricing: Location, staff experience, and hours of operation are some of the biggest drivers of call center rates and pricing. Other indirect costs like compliance, overheads, and training also affect your total budget.
- Software costs: Investing in the right call center software improves the customer experience but can increase costs.
Types of call centers & contact centers
Before even considering pricing, you must decide what type of communication you need with your customers, and how to best execute those specific communication modes.
Ask yourself these questions to get started:
- How do you want the customer to reach you?
- Can a centralized call center staff effectively handle all inquiries?
- Do you need services other than customer support?
Most customer support calls are handled over the phone. But in today’s world, technology such as chatbots, FAQs, accounts, and help desks can lighten the burden.
Alternative communication channels also help customer support staff during peak hours and give your team diverse material for review, broadening their perspective when helping customers. How you approach structuring your contact center depends on the size of your business and what it sells.
A small- or medium-sized eCommerce business likely doesn’t need the same personnel as a similar-sized tech startup. While an eCommerce business would probably have dedicated support handling communications related to product tracking and inquiries, a tech company wouldn’t likely need this.
Once you identify what role a call/contact center will have within business operations, it’s time to figure out which type is most effective.
In-house call centers versus outsourced call centers
The debate between in-house and outsourced call centers is widespread for companies as they grow.
An in-house call center is managed by a company’s employees, which means there is a dedicated team of internal employees directly answering customer calls.
Outsourced call centers are run by a separate company from the one needing call services. Outsourcing can be used for one department, people in specific locations, or company-wide.
As businesses develop, their needs diversify, and roles become specialized to maximize efficiency. Many laws, regulations, and employment practices in the United States set strict standards for businesses to withhold. Due to this, many companies choose to outsource their call center.
In general, outsourcing is less expensive than hiring an in-house team, regardless of where you live. In-house teams are manageable for small or local businesses, but they should also develop other communication channels to alleviate some of the burden from their call center functions.
Multichannel contact centers versus omnichannel contact centers
The next step up from running a call center is a contact center. Contact centers are a dedicated team of outsourced or in-house employees that manage multiple consumer and client communication types—not just calls and voicemails.
What’s unique about contact centers is they also handle email, web chat, social media, and SMS communication. Plus, they use customer relationship management (CRM) tools and customer satisfaction and engagement analytics software to resolve customer concerns.
Regardless of the type of contact center (multichannel contact center or omnichannel contact center), all contact centers handle inbound and outbound voice calls. The primary difference between the two contact centers is that omnichannel contact centers use cloud-based software and other comprehensive software tools to process customer inquiries.
With cloud-based software at their fingertips, omnichannel contact centers can quickly process and display customer information to their employees, understanding the customer’s history, previous issues, and background. On the topic of streamlining, omnichannel contact centers save on costs over multichannel contact centers by optimizing and emphasizing key performance indicators (KPIs).
Outbound services versus inbound services
Lastly, when deciding which call center is the right option for your business, consider what call center services are necessary.
All outsourced call centers break down their services into two categories: outbound and inbound.
Outbound services center around lead generation through information gathering and client management. Surveying, up-selling, cross-selling, telemarketing, and customer loyalty programs are some of the many things you can do with an outbound-focused call center.
On the other hand, inbound services are meant to cut down on call volume by directly answering customer calls about products, orders, service quality, and additional technical support. Help desks, customer service, order taking, and answering services are some of the most common inbound call center functions.
Many companies outsource call centers to handle both inbound and outbound communications. However, the same team shouldn’t be managing both services, and agents should only work within one department to maximize efficiency.
Average outsourced call center cost
Outsourcing your call center services can be a cost-effective way to support your business, but pricing varies depending on the type of service. Two main categories — inbound and outbound call center services — include different functions that affect call center pricing in different ways.
Inbound call center cost
Inbound call centers help customers who reach out with questions, orders, or support needs. These agents focus on customer service and are trained to know about your products or services. Call center costs for inbound support often reflect the expertise needed to provide quick, helpful responses that keep customers satisfied.
Outbound call center cost
Outbound call centers handle outreach, like reaching out to new leads, following up on surveys, or running promotional campaigns. Outbound call center pricing can vary based on the complexity of your goals and the type of customers you’re reaching out to. These agents have skills in building connections and sparking interest, making outbound services a great choice if you want to expand your reach.
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15 factors that influence how much a call center costs
Whether you choose an in-house setup or an outsourced team, several factors can impact call center rates and pricing. These include the more visible expenses, like staffing and software, and indirect costs, like training and compliance with industry standards. Knowing the details can help you find a call center pricing model that works for both your budget and your business goals. Here’s a closer look at what to consider as you estimate call center costs.
1 . Location
The location of a call center is the most significant factor in determining how expensive it is to manage. Workers in the United States, Australia, and Western Europe have a higher standard of living, higher education, and more of a grasp of English communications. However, due to this, it is more expensive to run a call center in those places.
Outsourced call centers are the cheapest in India, Pakistan, Latin America, and East Asia (more specifically, the Philippines), where English is taught to a proficient level at schools.
Call center pricing models are frequently dependent on location:
- Onshore call centers cost about $28–$38* hourly per agent.
- Nearshore call centers cost about $13–$18* hourly per agent.
- Offshore call centers cost about $9–$17* hourly per agent.
*Please note that these figures are generalized and may vary depending on what services you need and a variety of other factors.
2. Pay structure
Do you plan on paying your employees hourly or a set salary? Call centers turn over many employees, so there is a valid case to be made for paying staff either way.
3. Bonuses
At many call centers, employees are paid extra while working during surge hours or for overtime. Bonuses incentivize employees to take additional steps and carefully consider customers’ needs.
4. Insurance and other perks
Consider giving employees health insurance to engender loyalty via stability and security. You can’t get back the time an employee spends lingering over an illness or injury, and long-term sickness negatively impacts call center productivity.
5. Total number of staff
Call centers lose potential customers when they miss out on calls — and therefore lose money. You should also consider when staff members are working and use analytics software to have as many employees working at peak times as possible.
6. Experience of employees
Depending on the role of your business and what you need the call center to do, pricing can vary drastically. Employee experience also influences the number of missed/dropped calls, and the reasons those calls ultimately fail.
7. Tools available
Call centers have many call management tools to help them process information and handle incoming calls. Call center rates depend on the quality and pricing of these tools.
8. Hours of operation
It is more expensive to run a call center during peak times when there are the most incoming calls. 24/7 and non-remote call centers have to deal with utility costs and other fees.
9. Languages spoken by employees
If your customers speak more than one language, your employees must be trained to speak multiple languages and should be paid more for their developed skill sets.
10. Training costs
Employees aren’t perfect, and as a business’s needs, product lines, and brand identity change, so must call centers. Training costs are unavoidable, especially for correcting issues and optimizing communication approaches.
11. Cost of integrating new employees
Call centers go through personnel quickly — so it is absolutely vital to integrate employees efficiently. Employees with more experience cost less to integrate, but require higher pay.
12. Compliance
Keeping up with industry regulations is crucial, especially if your team handles sensitive customer information. Compliance costs, including audits, monitoring, and reporting, can add to call center pricing but are essential for protecting your customers and business.
13. Overheads
Overhead costs like utilities, rent, and general facility expenses vary depending on your call center’s location. Locations with higher overhead typically lead to higher service fees for both in-house and outsourced call center pricing.
14. Facilities
If your call center has a big team or operates around the clock, you’ll need secure workspaces, maintenance, and strong IT support to keep things running smoothly. These facility costs are part of hosted call center pricing and can vary based on your needs and location.
15. Outsourcing
Pricing for outbound or inbound call center service support will depend on the skills and level of service you need. Choosing a good outsourcing partner gives you flexibility and scalability while helping you stay within your budget.
Typical costs of call center software
Good software is the backbone of a well-run call center, and the prices vary depending on what you need and the size of your center. Here are some additional factors that can impact the cost.
- Subscription fees
Most call center software providers charge monthly or annual fees based on the number of users and the features you choose. Basic call center pricing usually includes essential tools, while advanced packages increase rates. - Development and ongoing support costs
Some companies need custom-built software, which includes development costs and additional fees for ongoing support. These fees can impact the call center pricing model you choose. - Data transfer and API fees
If your software integrates with other systems or uses real-time data transfer, API fees or additional costs for data security may apply. These expenses are part of hosted call center pricing and help ensure your software is secure and compliant.
Emphasize customer experience and retention with Global Response
Looking to start an omnichannel contact center for your company? Contact Global Response to receive a free quote and learn more about how we can help your business.
