Starting a call center is easier than it used to be, thanks to technology. But many fail to scale or meet customer expectations due to poor planning, high turnover, or choosing the wrong tools.
According to Insignia, call centers face an average annual staff turnover rate of 30% to 45%, making employee retention a major challenge in the industry.
To start a call center and set up a successful operation, you first have to understand your target market, choose the right technology, maintain legal compliance, allocate budget, focus on KPIs, and more.
In this guide, we will provide a step-by-step guide on how to start a call center and discuss some of the practical tips for growing success.
✨ Key Takeaways
- Define your purpose and goals clearly before starting.
- Allocate budget for software, hardware, training, and hidden costs.
- Choose between on-premise, cloud, or hybrid setups based on infrastructure.
- Foster a healthy work culture with flexibility and recognition.
- Track performance using metrics like AHT, ASA, FCR, CSAT, etc.
Step-by-step guide to start a call center
Anyone can start a call center, but setting it up properly with a strategic plan directly impacts customer satisfaction, operational efficiency, brand reputation, and employee engagement.
So if you are willing to start a well-managed call center with positive customer experience and a cost-effective solution, follow these steps:
Step 1: Define your call center’s purpose and objectives
First of all, you need to understand why you want to establish your call center. What are your visions, and with so many call centers available, why are you specifically trying to start your own call center?
For this, set a specific and realistic goal that you are willing to achieve after having your call center. Try to divide larger goals into smaller ones with separate milestones and define particular KPIs to track your progress.
The major purposes of a call center in the first place are:
- To handle a wide range of inquiries, complaints, and requests.
- Support various business operations like sales, technical support, customer service, and appointment scheduling.
- Build and maintain positive customer relationships through effective interaction and problem-solving techniques.
- Gather valuable customer feedback and data that can be used to improve products, services, and overall business strategies.
Similarly, the primary objectives of starting a call center are:
- High-quality customer service: The end goal is to provide efficient and accurate responses to customer inquiries.
- First call resolution (FCR): An attempt to minimize the follow-up calls by resolving issues on the first interaction.
- Customer satisfaction: Ensuring customers have positive experiences and feel valued to increase loyalty and advocacy.
- Efficiency and productivity: Optimizing call center operations to handle a high volume of calls effectively and reduce average handling times.
- Agent development: Invest in training and resources so agents can deliver exceptional service and achieve performance goals.
- Cost management: Control of operational costs while maintaining high service standards.
- Achieving business goals: Supporting the overall business objectives by providing excellent customer service and contributing to sales, lead generation, or other key performance indicators.
Step 2: Decide on the call center type
Once the objectives are clear, determine which type of call center is the best fit for your business. Call centers are of many types based on call direction and the location model. Let’s have a look at it in brief:
Call centers based on call direction
Based on the call direction, a call center is usually of 3 types: inbound, outbound, and blended.
- Inbound: An inbound call center is a customer service activity that handles incoming calls from customers or potential customers. These call centers usually resolve issues and answer inquiries initiated by the customer.
- Outbound: An outbound call center is a business activity where agents make outgoing calls to customers and prospects. These calls can be for various purposes, including sales, customer service, market research, or collections. Here, call centers initiate the call to individuals.
- Blended: A blended call center is a contact center that handles both inbound and outbound calls, allowing agents to switch between receiving customer inquiries and making proactive calls for sales, follow-ups, or surveys. This approach aims to optimize agent productivity and improve overall customer experience with maximum agent utilization and less downtime.
Based on the location model:
On the basis of the location model, call centers are basically categorized into 3 types: on-site, remote, and virtual.
- On-site: On-site call centers are the traditional model where the customer care agents work from a central office location in the same physical space. This model involves direct supervision and collaboration among agents, hence making it easier to maintain consistency in processes and service standards. However, the downside of this model is that it has high overhead costs (rent, utilities, etc.) and is less flexible for agents.
- Remote: Remote call centers operate with agents working from various locations outside an office. This model relies on technology to connect agents with the call center systems and other team members. It offers more flexibility and potentially reduces costs. However, in this setup, IT faces potential interaction challenges, requires robust technology infrastructure, and less direct supervision.
- Virtual: Virtual call centers are a specific type of virtual call center that uses cloud-based software and technologies to enable a geographically distributed workforce. It uses an internet connection to connect agents and let them access tools and applications via the cloud, which is excellent for maintaining scalability and flexibility. But it requires reliable internet connectivity, potential security concerns, and can be challenging to maintain a strong sense of team cohesion.
Step 3: Establish a budget
To start a call center in an evolving technological environment, you require careful consideration of all the associated costs. Let’s discuss some of the major areas to cover potential costs and allocate the budget.
1. Office & hardware
If you are willing to build a physical call center, the space becomes a significant investment. The initial investment includes the cost of physical workspace and the necessary hardware requirements. Also, factors like utilities, maintenance, upgrades, and hardware replacements are the ongoing costs.
You will basically need:
- Office lease or rent: Cost varies based on location and size.
- Workstations: Chairs, desks, dividers, and basic furniture.
- Computers and headsets: Every agent needs a reliable system and a noise-canceling headset.
- Networking hardware: Routers, modems, LAN setup, and backup internet lines.
- Power backup: UPS systems or generators to avoid downtime.
Even in a hybrid or remote model, some of this hardware may be required for central operations or for equipping remote staff.
2. Software licensing
You should know the type of software you need for the smooth operation of your cloud call center within your budget. Software comes in various licensing models (e.g., single-user, subscription-based, enterprise-wide). Whether you choose cloud-based or on-premise software, you will need these for smooth operation:
- Call center software: To manage calls, routing, and agent performance.
- CRM software: To track customer details, histories, and interactions.
- Workforce management tools: For scheduling, forecasting, and tracking productivity.
- Analytics & reporting tools: To measure KPIs and make informed decisions.
- Security software: Firewalls, antivirus, and access control systems.
3. Training and support
A well-trained team is the core of success for any call center technology. Consider the costs of:
- Initial onboarding: Materials, instructor time, and dedicated sessions for new agents.
- Ongoing training: Regular refreshers, skills upgrades, and product updates.
- Support materials: Call scripts, process guides, knowledge bases, and software manuals.
- Mentorship and coaching programs: To improve agent confidence and reduce turnover.
4. Additional hidden costs
The cost always exceeds if you miss the additional and hidden fees. These are miscellaneous, but worth considering when you are willing to start a call center. These costs include:
- Internet bills: Business-grade connections, sometimes with backups.
- Maintenance: Routine equipment servicing or replacements.
- IT support: For troubleshooting system or software issues.
- Software updates and integrations: To keep tools current or link systems together.
- Compliance costs: If you operate under specific regulations (e.g., GDPR, HIPAA), you may need additional tools or audits.
- Unexpected costs: Sudden outages, repairs, or growth-related upgrades.
Step 4: Choose the right call center software provider
Choosing the right call center software involves several considerations. Let’s discuss them in brief:
1. On-premise vs. cloud-based vs. hosted
- On-premise: The software is installed and run on the servers owned by the company. It required upfront investment in hardware, software licences, and IT staff for maintenance.
- Cloud-based: Cloud-based software is hosted by a third-party provider and is accessed over the internet. It reduces the upfront cost and makes scaling and remote access easier.
- Hosted: A hosted software is similar to cloud-based software, but it is specially designed for call centers and is managed by a third-party provider.
Here’s a quick comparison:
| On-Premise | Cloud-Based | Hosted |
| Installed and run from your own servers, within your office | Fully web-based; accessed via the internet with no local setup | A third party owns the software and runs it on their servers. You access it remotely |
| Full control over infrastructure and security | Fast setup, low upfront costs, and flexible access | Mix of control and convenience, more flexibility than on-premise, less than full cloud |
| Higher costs for hardware, maintenance, and upgrades | Scales easily with your team size and call volume | Moderate scalability with fewer technical headaches |
| Best for large companies with dedicated IT teams | Ideal for startups, remote teams, or businesses that want to scale quickly | Good for companies that want some control without managing everything in-house |
2. Must-have inbound & outbound features
Inbound contact center solution features:
- IVR (Interactive Voice Response): IVR phone tree allows callers to choose where they want to be directed using a simple menu and reduces the load of agents. You can also look for multi-level IVR for better results.
- Call routing: Call routing is a feature that automatically directs the call to the right department or agent based on the caller’s input and agent availability.
- Call queuing: Call queuing places your inbound call in a virtual queue when your agents are busy.
- Real-time monitoring and reporting: Using features like call analytics and live call monitoring, you can get comprehensive call center metrics in real time.
- Call intercept: You can use call intercept; you can quickly take over the call entirely to resolve the issue before it becomes a serious problem and prove that you have your team’s back.
Outbound contact center solution features:
- Auto Dialer: Auto dialers, like a power dialer, automatically dial numbers from the uploaded contact list.
- Click-to-call: Agents can place calls directly from the CRM or dashboard without having to dial numbers manually.
- Call recording: Call recording records every call for further analysis and review.
- Lead management tools: Keep track of leads, follow-ups, and customer notes in one place so nothing falls through the cracks.
3. Advanced AI and omnichannel capabilities
- AI-powered chatbots: Customer interactions can be automated through an AI text message responder to improve efficiency and reduce costs.
- Omnichannel support: Integrates channels like voice, chat, email, and social media in one place for a better customer experience.
- Real-time transcription: Instantly makes call notes to improve teamwork and reduce confusion, which further helps in post-call analysis.
Step 5: Get call center hardware and equipment
The equipment you need to start a call center depends on the type of infrastructure you choose.
For on-site call centers
To run your call center in a physical location, you need to take care of hardware and equipment. Here’s what you’ll need:
- Desk phones & headsets: Each agent will need a reliable business phone or VoIP phone numbers and a noise-canceling headset for clear conversations.
- PBX system: A private branch exchange (PBX) manages incoming and outgoing calls within your local network.
- Servers & networking equipment: To store call data, manage internal systems, and keep your setup running smoothly.
- Computers & monitors: Agents require them to access CRM tools, call scripts, and log call outcomes.
- Power backup & cooling systems: They help to prevent downtime and protect sensitive equipment during outages or hardware strain.
For cloud-based call centers
Cloud call centers require less equipment comparatively, so that you can focus on the reliability and connectivity with customers. For this, you need:
- Laptops or desktops: Each agent needs a computer that supports your call center software and browser-based tools.
- VoIP headsets: USB or Bluetooth headsets with built-in microphones make it easy to take calls through a browser or app.
- High-speed internet: A stable internet connection for voice clarity and real-time data sync.
- Optional softphones: Some teams may use softphone apps for better control and mobility.
- Router with QoS settings: Quality of Service (QoS) helps prioritize call traffic and reduce drops or lags during peak times.
Step 6: Determine your staffing needs
Calculate how many people you need to meet customer expectations without wasting resources. Contact centers use the Erlang C method to forecast staff based on call volume, handle time, service goals, occupancy, and shrinkage.
To hire for a startup, you need:
- Call center agents: These are your front-line staff. Their count comes from the formula: Number of agents needed in a call center = expected call volume × average handle time (AHT) / available agent time.
- Team leader/supervisor: They guide agents, handle escalations, track performance, and provide coaching support. A typical ratio is about 1 supervisor per 10 to 15 agents.
- Call center manager: They oversee all operations, staffing forecasts, and quality. They make sure targets are met and run daily operations smoothly.
- Technical support specialist: They handle hardware, software, and network issues. It is essential if you rely on VoIP, CRM, or other AI tools.
- Quality assurance (QA) specialist: They listen to calls, review recordings, provide feedback, and help uphold standards.
- Trainer: They handle onboarding and ongoing training with new agents, tools, scripts, and process updates.
- Recruiter: They manage hiring and onboarding and are valuable if your center plans to grow quickly.
Step 7: Hire the right team
Finding the right people is essential in the call center. The staff and agents should be able to work calmly with each customer, even under pressure or during non-stop calling hours. Hiring well at this stage sets the foundation for excellent service and smooth operations.
The key skills you can look for during the hiring process are:
- Communication
- Empathy
- Patience
- Active listening
- Problem-solving
- Conflict resolution
- Adaptability
Step 8: Measure performance with call center metrics and KPIs
In this step, you need to measure the performance to track the ongoing activities and address the areas of issues and improvements. Metrics and KPI (Key Performance Indicators) are the ways to measure and track performance. Let’s discuss which metrics and KPIs you need to keep an eye on.
- AHT: AHT (Average Handling Time) in a call center or customer service center is a key metric that measures the average time agents spend handling customer interactions. This time consists of talk time, hold time, and any post-call work.
You can calculate AHT using this formula: AHT = (Total talk time + Total hold time + Total after-call work time) / Total number of calls.
- ASA: ASA (Average Speed of Answer) is a KPI that measures how quickly an agent answers an incoming call after it enters the call queue. It reflects the efficiency of call handling and includes the time the call spends ringing and the time it spends waiting in the queue.
You can calculate ASA using this formula: ASA = Total waiting time for answered calls / Total number of answered calls.
- FCR: First call resolution is a KPI for call centers that measures the percentage of customer issues resolved during the first interaction with a contact center. It helps to improve the customer satisfaction rate and reduce operational costs.
You can calculate FCR using this formula: FCR = (Number of issues resolved on the first contact / Total number of customer issues) x 100%
- Abandonment Rate: Abandonment rate is the percentage of users who begin a process but fail to complete it or leave it in the middle. It helps businesses to identify the point where users encounter issues or lose interest.
- CSAT: Customer Satisfaction Score is a metric that measures the customer’s satisfaction with a product, service, or interaction. Typically, it is measured through surveys and scaled 1-5 or 1-7. It provides insights into the quality of customer interaction and overall experience to identify areas for improvement.
You can calculate CSAT using this formula: CSAT score = (Number of satisfied customers / Total number of responses) x 100
- Conversion Rate: Conversion rate is the percentage of users who complete the desired business action, such as signing up for service or purchasing a product.
You can calculate the conversion rate using this formula: Conversion rate = (Number of Conversions / Total Number of Interactions) x 100
Step 9: Build a positive call center environment
This is the last step, but it is very important to maintain the well-established workflow in the call centers.
- Flexible work hours or hybrid options: Offer flexible work hours or hybrid options to help employees balance work and life.
- Recognition and rewards: Keep the practice of recognizing achievements with rewards, as it keeps morale and shows you value their efforts.
- Supportive leadership: More than managing everything and everyone, try to be supportive of your agents so that they can feel heard and guided at every step.
- Opportunities for growth: Create opportunities for growth to encourage career development.
- Team bonding activities: Organize team bonding activities to build strong relationships.
Tips for growing success
Here are a few tips that are used to grow success in a call center:
- Focus on continuous training to keep skills sharp and updated.
- Monitor key performance metrics regularly to identify areas for improvement.
- Encourage open conversation between agents and management.
- Use customer feedback to refine processes and service quality.
- Invest in technology that boosts efficiency and supports remote work.
- Foster a positive culture that values teamwork and accountability.
- Adapt quickly to changes in customer needs and market trends.
- Set clear goals and celebrate milestones to keep the team motivated.
Final Thoughts
Starting a call center does not have to be complex. With the right strategy and provider by your side, you can easily start a call center. Although emerging technology has increased the reliance on AI and other smart options, it is not to replace but to help the agents increase the overall productivity.
Now, since you know all the necessary steps and tips to start a call center, follow these 9 steps, and you can get up and running in just a few hours without the need for long, expensive installations.
Select the right features for your business, like multi-level IVR, call routing, voice mail transcription, call barging, bulk SMS, Unified Callbox, power dialer, live call monitoring, internal message thread, auto reply to missed call, and many more for an efficient operation from day one.
Trusted providers like KrispCall make sure your call center is equipped to meet your goals, improve customer satisfaction, and scale effortlessly.
Ready to build a call center that works? Let’s make it happen. Try KrispCall today and book a free demo.
