Economics of call centers

Look at the numbers from ATT’s point of view. They have some 60 million customers, and the average customer calls with a question or complaint six to eight times per year. The average call costs about $1 per minute to handle, and lasts four to five minutes. That means that ATT, according to industry averages, must spend around $2 billion per year on call centers.

I got these estimates from P.V. Kannan, CEO of 24/7 Customer, a call center company based in Campbell, Ca.

The question it raises, which confronts lots of companies, is this: What’s the economic case for mistreating customers? The downside can be an explosion of call center traffic. That has a cost, which can be projected. It can also create a storm of bad publicity in blogs, Twitter, social networks, and in some cases the mainstream press.

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