How to Measure and Boost the ROI of Your Call Center

Sophia Williams
June 13, 2023
 Mins Read


The impact of Return on investment (ROI) on the sustenance of call center operations is huge. ROI analysis helps evaluate the financial performance and effectiveness of call center operations. By measuring key performance indicators (KPIs) such as revenue generated, cost per call, and customer satisfaction, ROI calculations provide insights into the profitability and efficiency of a call center. 

Positive ROI demonstrates the effectiveness of the call center in generating revenue, reducing costs, and improving customer satisfaction. This, in turn, justifies investments in technology, training, and process improvements. ROI analysis guides strategic decision-making, resource allocation, and continuous improvement efforts to optimize call center performance and maximize its contribution to the overall business success.

This blog will explore key metrics and techniques to measure the effectiveness of your call center operations and determine their ROI. Additionally, we'll uncover actionable tips and strategies to optimize your call center's performance.

What Research Says on Call Center ROI?

  • According to Retail Customer Experience, with better customer experience, brands bring 5.7 times more revenue than competitors.
  • According to PR News Wire, improved customer experience helps uplift 84% of revenue.
  • According to Bain & Company, a 5% increase in customer retention can help increase 25% profit for businesses.

Call Center ROI and Its Components

ROI in a call center can be calculated by dividing the total revenue generated by the call center by the cost of operating the call center. The revenue generated can include sales made on calls, customer retention, and customer satisfaction ratings. The cost of operating the call center can include the cost of labor, technology, and facilities.

In the context of call centers, ROI encompasses several key components that contribute to its calculation and assessment.

  1. Cost of Operations: This component includes all expenses related to running a call center, such as infrastructure, technology, equipment, utilities, and employee salaries. It is essential to track and optimize these costs to maximize ROI.
  2. Customer Satisfaction: A significant factor in ROI is the level of customer satisfaction achieved through call center interactions. Happy and loyal customers lead to repeat business, increased referrals, and reduced churn rates, positively impacting the return on investment.
  3. Service Level Metrics: Call centers rely on various performance indicators, such as average handle time, first call resolution, and call abandonment rate. Monitoring and improving these metrics directly impact ROI by enhancing operational efficiency and reducing costs.
  4. Employee Productivity: The performance and productivity of call center agents directly influence ROI. Factors such as training, agent utilization, average handling time, and call quality all play a crucial role in determining the overall efficiency of the workforce and subsequently impacting ROI.
  5. Technology and Automation: Investing in advanced call center technologies and automation tools can lead to improved efficiency, reduced costs, and enhanced customer experiences. Leveraging these components effectively contributes to a higher ROI.
Call Center ROI and Its Components

Common Methodologies for Calculating Call Center ROI 

Calculating ROI in a call center involves various methodologies and approaches. Here are some commonly used methods:

  1. Cost-Benefit Analysis: This method compares the cost of operating the call center with the benefits generated. Costs include infrastructure, technology, staffing, training, and maintenance, while benefits may include increased sales, improved customer satisfaction, reduced churn, and cost savings. The ROI is calculated by subtracting the total costs from the total benefits and dividing the result by the total costs.
  2. Customer Lifetime Value (CLV): CLV is a method that measures the net profit a call center is expecting to earn from a customer throughout their entire relationship with the company. The ROI can be calculated by estimating the revenue generated from customers acquired or retained through call center activities and subtracting the associated costs.
  3. Return on Customer Investment (ROCI): ROCI assesses the effectiveness of call center investments in acquiring, retaining, and developing customer relationships. It measures the profitability and value generated from these investments by considering customer revenue, cost per contact, and customer retention rates.
  4. Incremental Revenue Analysis: This method compares the revenue generated before and after implementing specific call centers initiatives, such as technology upgrades, process improvements, or training programs. The difference in revenue, minus the associated costs, is divided by the costs to calculate the ROI.
  5. Employee Productivity Analysis: This approach focuses on measuring the productivity and efficiency of call center agents. It considers factors such as average handling time, call volumes, customer satisfaction ratings, and agent utilization. The ROI can be determined by quantifying the improvements in agent performance and relating them to the associated costs.
  6. Balanced Scorecard: A balanced scorecard is a comprehensive approach considering multiple performance metrics and perspectives, including financial, customer, operational, and employee aspects. It provides a holistic view of the call center's performance and impact on overall ROI.

Best Practices for Maximizing Call Center ROI

Identifying Gaps in Call Center Operations

Identifying gaps in call center operations is crucial for improving the organization's return on investment (ROI). A call center plays a vital role in customer support, sales, and support, and any inefficiencies can result in lost revenue and dissatisfied customers. By identifying and addressing these gaps, a company can enhance its operations, optimize resource allocation, and improve its ROI.

To begin, analyzing call center metrics is essential. This involves examining key performance indicators (KPIs) such as average call handling time, first call resolution rate, and customer satisfaction scores. Performance gaps can be identified by comparing these metrics to industry benchmarks and organizational goals.

Furthermore, conducting customer surveys or soliciting feedback can provide valuable insights into areas where the call center may fall short. Understanding customer pain points and areas of dissatisfaction can help pinpoint specific operational gaps.

In addition, leveraging technology can play a significant role in identifying gaps. Call recording and monitoring tools can be used to assess agent performance, identify training needs, and detect patterns of customer complaints or issues. Speech analytics software can analyze customer interactions to uncover trends and identify areas for improvement.

Lastly, involving frontline staff and supervisors in the identification process can yield valuable insights. They have firsthand experience and can provide valuable feedback on potential gaps, bottlenecks, or areas where processes can be streamlined.

Create Better CX

The impact of Customer Experience (CX) on improving Return on Investment (ROI) in call centers is a critical consideration for businesses seeking to optimize their operations and drive financial success. Call centers play a crucial role in customer interactions, making it crucial to prioritize CX as a best practice for maximizing ROI.

A research study by Bain & Company found that increasing customer retention rates by 5% can lead to profit increases of 25% to 95% due to additional sales.

Firstly, a positive CX in call centers leads to higher customer satisfaction. Callers are more likely to be satisfied with the solution provided. When they have a smooth and efficient experience, with minimal wait times and effective issue resolution. Satisfied customers are more likely to continue the business with the company and tend to spend more and refer others, thereby increasing sales and revenue.

Secondly, a superior CX in call centers reduces customer churn. Customers who have positive experiences and receive excellent support during their interactions are less likely to switch to competitors. Retaining customers is cost-effective compared to acquiring new ones, as it eliminates the need for additional marketing and acquisition expenses. Consequently, reducing customer churn through improved CX directly contributes to improving ROI.

Moreover, focusing on CX in call centers enhances operational efficiency. By leveraging technologies such as interactive voice response (IVR) systems, intelligent routing, and customer data integration, call centers can streamline processes, reduce call handling times, and improve agent productivity. These improvements lead to cost savings, such as reduced labor costs and increased call capacity, ultimately driving better ROI.

Additionally, by capturing and analyzing customer feedback and call data, call centers can identify areas for improvement and implement targeted training and process enhancements. By addressing specific pain points and improving the skills of call center agents, businesses can enhance the overall CX, resulting in higher customer satisfaction and loyalty, which in turn boosts ROI.

Data-driven Decision-making

Data-driven decision-making is a powerful strategy to enhance call centers' return on investment (ROI). By leveraging the vast amount of data available within call center operations, organizations can make informed decisions that optimize resources, improve performance, and ultimately increase profitability.

One of the key areas where data-driven decision-making can have a transformative impact is workforce management. By analyzing historical call data, call centers can accurately forecast call volumes and patterns, efficiently scheduling agents based on anticipated demand. This optimization of staffing levels minimizes idle time and reduces customer wait times, leading to improved customer satisfaction and higher ROI.

Moreover, analyzing customer interactions through data-driven techniques such as speech analytics and sentiment analysis provides valuable insights into customer needs, preferences, and pain points. By understanding these patterns, call centers can tailor their business offerings, training programs, and product offerings to meet customer expectations better. This targeted approach increases customer loyalty, reduces customer churn, and boosts ROI.

Data-driven decision-making can also help eliminate process bottlenecks and areas for improvement. Analyzing call handling metrics, such as average handle time and first call resolution rates, allows organizations to pinpoint inefficiencies and implement targeted process improvements. By streamlining operations, call centers can reduce costs, enhance agent productivity, and achieve higher ROI.

Control Over Call Center Costs 

Managing call center costs is crucial for optimizing Return on Investment (ROI) and ensuring the profitability of call center operations. By implementing effective cost management strategies, organizations can improve their ROI while maintaining high-quality customer support. Here are some key considerations to enhance call center ROI through cost optimization.

Firstly, analyzing and understanding the call center's cost structure is essential. This includes identifying fixed and variable costs, such as infrastructure, technology, labor, training, and maintenance. Organizations can pinpoint areas where cost-saving measures can be implemented by categorizing and prioritizing these expenses.

One effective strategy is to leverage technology and automation. Implementing advanced call center software, such as interactive voice response (IVR) systems and chatbots, can handle routine customer inquiries, reducing the need for human agents and lowering labor costs. Additionally, workforce management tools can help optimize staff scheduling and improve agent productivity, resulting in better cost efficiency.

Investing in agent training and development is another important aspect. Well-trained agents can handle calls more efficiently, reducing call duration and enhancing customer satisfaction. Continuous training programs can also reduce agent turnover, minimizing recruitment and training costs in the long run.

Regular monitoring and analysis of key performance indicators (KPIs) are essential to identify areas for improvement. Call center managers can identify bottlenecks and implement targeted cost-saving initiatives by tracking metrics such as average handle time, service level, first-call resolution, and customer satisfaction.

Lastly, effective resource allocation is crucial. By aligning staffing levels with call volume patterns, call centers can avoid overstaffing during low-demand periods, minimizing unnecessary costs. Leveraging flexible workforce options, such as remote agents or hiring a partner, can save costs while maintaining service quality.

Optimizing call center costs is a vital step toward maximizing ROI. By leveraging technology, investing in agent training, monitoring KPIs, and adopting efficient resource allocation strategies, organizations can enhance their call center's cost efficiency while delivering exceptional customer experiences.

According to a Deloitte survey, businesses can achieve cost savings of up to 60% by hiring a partner for call center operations.

Tools and Software for Tracking and Reporting ROI Metrics

Several tools and software are available to track and report ROI metrics in a call center. Here are some popular options:

Customer Relationship Management (CRM) Systems

CRM platforms, such as Salesforce, Microsoft Dynamics 365, and Zoho CRM, offer features to track customer interactions, sales data, and customer satisfaction metrics. These systems allow call center managers to analyze customer-related ROI metrics and generate reports.

Call Center Analytics Software

There are specialized analytics solutions designed specifically for call centers. Examples include Genesys PureAnalytics, NICE Analytics, and Talkdesk Analytics. These tools collect and analyze call center data, including call volumes, wait times, agent performance, and customer feedback, enabling comprehensive ROI reporting.

Business Intelligence (BI) Tools

BI tools like Tableau, Power BI, and QlikView enable call centers to create customizable dashboards and reports. These tools integrate data from various sources, including call center systems and databases, to provide insights into ROI metrics and performance indicators.

Performance Management Systems

Performance management software, such as Calabrio ONE, Verint Monet, and Aspect Workforce Optimization, offers features to track and report on call center agent performance. These systems collect data on metrics like average handle time, first call resolution, and adherence to schedules, providing insights into the ROI of workforce management.

Survey and Feedback Tools

Tools like SurveyMonkey, Qualtrics, and Medallia capture customer feedback and satisfaction data. By collecting feedback after customer interactions, call centers can assess the impact of their solutions on customer satisfaction and loyalty, contributing to ROI measurement.

Excel or Google Sheets

For smaller call centers or those with limited resources, spreadsheet applications like Microsoft Excel or Google Sheets can manually track and calculate ROI metrics. These tools provide flexibility in creating customized reports and performing calculations based on available data.

According to a study by New Voice Media, 67% of customers have switched to a competitor due to poor customer support.


Delegating the call center function to a trusted partner can help businesses control their ROI in several ways. Firstly, partnering with a specialized call center provider allows businesses to leverage their expertise and resources, resulting in efficient operations and cost savings. It also reduces the need for upfront investments in infrastructure, technology, and human resources, ensuring a better return on investment. Further, call center partners often have established processes, training programs, and quality assurance measures in place, leading to improved customer satisfaction and retention. 

Invensis’ leverages its experience and expertise in call center support to boost ROI of call centers. We offer comprehensive solutions to optimize operational efficiency leading to reduced costs, and improved revenue. Our focus on delivering measurable results, will enable you to achieve higher ROI. Contact us now to know more.

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