Call Center Cost Savings: 11 Best Ways to Reduce Call Center Expenses

  • Last Updated: 26 Mar 24
  • 13 min read
Call Center Cost Savings: 11 Best Ways to Cut Call Center Expenses

Are you looking for proven methods to reduce your call center’s operational costs without compromising customer satisfaction? 😊

In the fast-paced business world, all centers have evolved from traditional cost centers to critical components in delivering exceptional customer service. 

However, it’s increasingly challenging to manage the high operating costs while ensuring top-notch service. It is especially critical in a time of financial uncertainty and the demand for efficiency. 

In this blog post, you will learn about  11 innovative call center cost savings that will help your business survive and grow.🤗

Whether you’re trying to spend less money or want to be better than your competitors, these strategies💡 can help you find a balance between saving money and providing excellent customer service.

🗝️ Key Highlights

  • Call center cost savings are crucial for improving profitability and efficiency while maintaining high-quality customer service.
  • Implementing workforce management software, Optimizing call routing strategy, adopting AI and automation, improving agent training and development, and adopting cloud-based contact center solutions are actionable ways to reduce call center costs.
  • Implementing advanced call routing strategies, such as Skills-Based, Predictive Behavioral, and IVR-based routing, can significantly enhance efficiency and reduce costs.
  • Concentrating on optimizing the right call center metrics is one of the best call center cost reduction techniques.
  • KrispCall’s cloud-based platform streamlines call center operations, reduces hardware costs, and offers advanced call analytics for data-driven decision-making.

Let’s get started.🚀

11 Effective Strategies for Reducing Your Call Center Expenses

Call centers are key to maintaining satisfaction levels and fostering lasting relationships. However, managing a call center comes with its own set of challenges, especially when it comes to controlling costs without compromising quality. 

Effective Strategies for Reducing Your Call Center Expenses

Cutting costs in call centers can be made easier once you know where to focus. You need to put effective and proven strategies to reduce your call center expenditure and maintain smooth call flow in your call center.🌟

 Let’s explore the best strategies for managing call center cost savings in an effective manner.

1. Optimize your call routing strategy

Optimizing your call routing system is one of the most effective ways to reduce costs while enhancing the customer experience. Manual call routing may seem simpler and less reliant on technology, but it can actually be quite costly for call centers. So, it is crucial to optimize the call routing mechanism.

Optimize your call routing strategy

Call routing directs inbound calls to the most suitable people or teams. It ensures quick and efficient answers to customer questions and increases the likelihood of future returns.

Essential Call Routing Types for Call Center Cost Reduction

  • Skills-Based Routing: Matches callers with agents based on their skills and expertise.
  • Predictive Behavioral Routing: Uses data from past interactions to predict caller needs and assign them to suitable agents.
  • Geographic Routing: Directs calls to agents based on the caller’s location for local expertise.
  • Time-Based Routing: Routes calls based on the time of day or week to optimize staffing.
  • IVR-Based Routing: Utilizes Interactive Voice Response technology to gather caller information and route calls efficiently. 

Software like KrispCall and RingCentral have IVR features that interact with callers using automated call routing systems. This reduces manual effort and improves call center efficiency.

You can easily reduce average handle time, boost Customer Satisfaction Scores, and improve First Call Resolution rates by optimizing the call routing strategy. 

👋 Take a look at: The Ultimate Guide: Call Center Optimization

2. Adopt AI and Automation into your Strategy

Modern call center platforms are increasingly adopting AI and automation. AI and Automation play a crucial role in optimizing agent workflows and reducing repetitive tasks, leading to significant cost savings in call centers. 

Implementing AI-powered tools such as virtual assistants, top-notch analytics tools, and chatbots can reduce staffing and infrastructure costs and improve the efficiency of handling routine tasks. By automating repetitive processes, you can also boost overall operational efficiency and minimize human error.

According to statistics published by Outgrow, 56% of consumers prefer using chatbots over calling customer support because they provide quick answers to simple questions.

Excellent AI and automation you can use for call center cost savings:

  • Auto dialer software is one of the most powerful automation tools for outbound call centers, mainly when the team focuses primarily on reaching prospects through outbound calls.
  • Another exceptional tool is virtual receptionist software, which automates businesses’ incoming call handling by providing professional greetings, customizable messages, and efficient call routing to various departments.
  • Power Dialer automates calls, tracks, records, compiles contacts, integrates CRM, creates campaigns, routes calls, and generates reports for AI-based decisions.
  • A predictive dialer is another top-notch feature that automatically dials multiple numbers and connects answered calls to available agents.

3. Utilize Speech Analytics to Drive Call Center Cost Savings

Speech analytics software represents a transformative solution for contact centers that aim to optimize operations and reduce expenses. These tools can transcribe and analyze call content in real-time by utilizing artificial intelligence in call centers (AI), natural language processing (NLP), and machine learning (ML).

It can analyze speech patterns, call content, and customer-agent interactions to identify issues causing operational inefficiencies, such as high call volumes, repeat inquiries, escalations, and customer dissatisfaction.

Moreover, these analytics platforms offer valuable insights into agent performance. They highlight areas for improvement and customize training to address specific gaps. 

Speech analytics can also be a crucial compliance tool. These systems use advanced keywords and phrase detection to detect possible compliance breaches during interactions. It lowers the chance of facing regulatory penalties and fines while shielding the organization from potential damage to its reputation caused by non-compliance.

👋 Take a look at: Drive Growth with In-depth Conversation Analysis

4. Improve Agent Training and Development

Investing in agent training and development may initially appear costly. However, in the long term, it proves to be a cost-saving approach. You can increase first-call resolution rates, reduce average call handle times, minimize the need for additional staff, and decrease employee turnover by making agents trained well. 

Continuous training also helps staff stay updated with industry best practices and boosts customer satisfaction.

In outbound call centers, where agents mainly focus on cold calling, it’s essential to train them in the best cold-calling techniques and effective objection-handling strategies. This training can significantly improve cold-calling success rates and reduce the cost per call.

So, improving agent training is pivotal and plays a major factor in call center cost savings.

5. Adopt Cloud-based Contact Center Solutions

Cloud-based Contact Center Platforms are one of the best strategies for call center cost savings. Adopting cloud-based contact center solutions reduces call center costs by eliminating the need for extensive on-premises infrastructure, lowering maintenance expenses, and offering scalable services that can quickly adjust to changing call volumes.

This flexibility and efficiency lead to significant savings on both operational and capital expenditures.

According to Otava, Companies can save between 15% to 40% on infrastructure costs by transitioning to cloud-based solutions.

Among the many cloud-based call center software options available, KrispCall stands out as an excellent platform. It offers 24/7 customer support, 99.99% uptime reliability, a call center wallboard, and advanced features like auto-attendant, virtual receptionist, auto-dialer, voicemail transcription, automatic call distribution, and more to help manage call center costs effectively.

6. Implement Workforce Management Software

Another best way to reduce call center expenses is to implement workforce management software. Employees are the major contributors to call center costs, so call centers should efficiently optimize workforce management practices. 

Workforce management software and effective scheduling systems help reduce call center costs by forecasting call volumes, optimizing staffing levels, matching agent skills with call types, minimizing idle time, and improving productivity through streamlined operations. Thus, the problem of overstaffing or understaffing in the call center can be easily avoided.

Additionally, it can track performance metrics and identify improvement areas, helping to reduce labor costs while maintaining or improving service quality.

7. Utilize Multichannel Support

Utilizing multichannel support involves offering customer service through various platforms beyond traditional phone calls, such as email, live chat, social media, and self-service options. This approach can significantly reduce call center expenses by diverting traffic to more cost-effective digital channels. 

You can allow customers to choose their preferred method of communication. Businesses can handle multiple inquiries simultaneously, especially with automated systems, which reduces costs.

Additionally, Self-service options in call centers can significantly reduce the number of inquiries that require direct agent intervention. These options empower customers to find solutions independently.

😊 Also read: Boost Efficiency with Call Center Automation

8. Evaluate and minimize call center attrition

High attrition rates can significantly impact call center costs, as recruiting, hiring, and training new agents can be expensive. You need to analyze the causes of attrition within your call center and implement targeted strategies to address them. This helps to improve employee retention and reduce turnover-related expenses.

It helps to reduce costs in several ways. 

  • First, it lowers recruitment and training costs. Retaining existing agents means spending less on recruiting and training new ones, saving time and money. 
  • Second, it leads to increased productivity. Stable teams result in higher productivity as agents become more experienced and efficient in handling customer queries. 
  • Third, it improves customer satisfaction. Experienced agents familiar with customer needs and processes can provide better service.  

9. Explore opportunities for Outsourcing

Another call center cost-saving approach is to find opportunities for outsourcing. You can work with a reliable outsourcing partner that will give you access to skilled and experienced agents. This can be more cost-effective than recruiting and training an in-house team. 

This approach enhances operational scalability and helps businesses to efficiently adjust their workforce size in response to shifting demand. It also helps them do so without incurring fixed costs.

One of outsourcing’s main benefits is the opportunity to leverage economies of scale, which can lead to a significant reduction in per-contact costs. Additionally, outsourcing can help lower labor expenses, as outsourced centers often operate in regions with lower wage expectations.

Furthermore, outsourcing firms often bring specialized knowledge and advanced technology. It provides a level of service that may be difficult to achieve in-house without significant investment.

10. Perform Regular Cost-benefit Analysis

Performing regular cost-benefit analyses of your call center activities is a strategic approach to identifying potential cost reductions and operational improvements. This analytical process involves assessing the return on investment (ROI) for various technologies, methods, and approaches. It helps you make informed decisions about where to focus investments for optimal cost efficiency.

Such analyses are crucial for understanding how call center operations impact customer satisfaction and loyalty. Analyzing costs and benefits helps to identify immediate cost-saving opportunities and ensures that long-term investments are aligned with strategic goals. This approach maintains sustained quality and service without sacrificing cost-effectiveness.😀

👋 Take a look at: Get Ahead in Business with VoIP’s ROI Advantage

11. Concentrate on optimizing Right Call Center Metrics

Analyzing key performance indicators (KPIs) can improve call center metrics. These include average handle time (AHT), first call resolution (FCR), contact center analytics, agent occupancy rate, customer satisfaction scores (CSAT), and net promoter score (NPS).

Concentrate on optimizing Right Call Center Metrics

When you focus on and regularly monitor these specific metrics, your call centers can identify areas for improvement, implement targeted strategies, and make data-driven decisions to reduce costs and achieve operational excellence.

Tracking customer satisfaction scores, service level agreements (SLAs), and customer churn rates can help you proactively address issues, optimize processes, and allocate resources more effectively. Over time, this will lead to significant cost reductions.

Reduce Hardware Costs with the KrispCall Cloud Call Center Platform

KrispCall is a cloud-based communication platform designed to streamline call center operations and significantly help save costs for call centers.

By using KrispCall’s advanced and top-notch features, call centers can optimize their workforce management, implement efficient call routing, and embrace the flexibility of remote work. 😊

KrispCall Best Platform for Call Center Cost Savings

The platform’s cloud infrastructure minimizes the need for expensive on-premise hardware and reduces maintenance costs. It allows easy scalability to adjust fluctuating call volumes. 

Furthermore, KrispCall’s advanced call analytics offer valuable insights into call patterns and agent performance. This helps managers make data-driven decisions, boosts their efficiency, and reduces unnecessary expenses.

By integrating these advanced features, KrispCall presents a comprehensive solution for call centers aiming to reduce operational costs while maintaining or improving service quality.

Wrapping Up

Achieving the right balance between cost efficiency and customer satisfaction in call center operations requires strategic planning and innovative thinking

The strategies we discussed in this blog give your businesses a clear plan for improving your call centers without sacrificing quality.

Call Center Cost Savings strategies include using AI and automation, adopting cloud-based solutions, implementing workforce management software, focusing on key performance metrics, and exploring outsourcing opportunities.😊

Platforms like KrispCall demonstrate how technology can be used to achieve these goals. They offer a range of advanced features that support efficient call center management and cost reduction.

By using these ideas, call centers can not only save money but also stand out in a competitive world by giving great customer service. 

Sign up now to get a free KrispCall demo and start saving costs efficiently in your call center.🌟


What is the Cost per Call?

Cost per Call is the average expense incurred for handling each individual phone call within a specific timeframe.

What is the Call Center Cost Breakdown?

Call Center Cost Breakdown is the division of cost that details the various expenses involved in running a call center, including personnel salaries, technology and infrastructure, telecommunications, facility overheads, software licenses and subscriptions, and more.

How to Calculate Cost Per Call?

You can calculate the cost per call by:

Total Call Center Costs ÷ Total Calls Answered = Average Cost Per Call

For instance, if your business spent $100,000 on call center operations in a month and managed to answer 25,000 calls, the calculation would be as follows:

100,000 ÷ 25,000 = $4.00 average cost per call

How to save money in a call center? 

You can save money in a call center by : 

  • Implementing workforce optimization tools.
  • Adopting cloud-based technologies.
  • Utilizing artificial intelligence and automation.
  • Improving agent training programs.
  • Analyzing and reducing unnecessary calls.

What are the cost reduction ideas in BPO?

The cost reduction ideas in business process outsourcing are:

  • Outsource to Cost-effective Locations.
  • Invest in Training and Quality Assurance.
  • Adopt Cloud Computing.
  • Negotiate Better Terms with Vendors.
  • Implement Telecommuting.
  • Focus on Customer Satisfaction.
  • Analyze and Reduce Turnover Rates.
  • Form Strategic Partnerships and Collaborations.
  • Use Data Analytics.
Arun Chaudhary

Arun is SEO Analyst at KrispCall. He has written in extensively in the field of cloud telephony and call center solutions.

Related Blogs

What is Conversation Analytics: Its Benefits, Use Cases

There’s no doubt that, when it comes to customer data, nothing generates more – or..

08 Feb 24
17 min read
5 Essential Training Required for a Call Center Agent

For instance, you are a customer, and you bought products from a company. After some..

17 Dec 23
14 min read
Benefits of Predictive Dialer for Your Call Center

Cold calling campaigns are common in call centers and are used for lead nurturing, market..

07 Nov 23
19 min read