How To Setup A Call Center? A Comprehensive Guide

The origin of call centers dates back to the 1960s when a UK-based press and mail company installed the world’s first PABX system. But it was not until the 1990s that customer support became streamlined for better efficiency.

However, the new call center setup required a substantial upfront investment, which caused a barrier for most companies.

With VOIP technology and cloud-based call center systems, the cost of setting up a call center has been significantly curbed. As a result, the call center market is expected to grow at 23.2% CAGR between 2022 to 2030. The main reason for this growth is the accelerated adoption of cloud-based and virtual call center solutions.

Expert Advice

For a successful call center setup and to get a competitive edge utilizing call center software is essential. With call center software, you can achieve the determined goals and objectives, as the software can amplify the effectiveness of the process by offering robust features. Moreover, you can save a lot on budget as hardwired equipment is not necessary to be installed

In this guide, you’ll learn a step-by-step process to set up a call center and associated costs, which is essential to know before entering the call center business. Let’s get started.

What Are The Key Features Of A Call Center?

Many features are essential while setting up a call center. Different call center setups, like outbound and inbound call centers, require different features. But some common and vital features are a must-have and must be included during each call center setup. The features are as follows.

1. IVR (Interactive Voice Response)

IVR is a feature that assists the caller in figuring out to which agent or department they want to connect. The IVR system should be such that caller of any age can easily navigate it by pressing the relevant buttons per the options mentioned in IVR. This will result in enhanced productivity and customer satisfaction.

2. Skill-based Routing

With this feature, the calls can be routed effectively, and there is little to no waste of time. Many call center solutions provider allow the integration of IVR with this feature; as a result, the caller is provided with an ample number of options before getting connected with the relevant department or agent. Moreover, there is a high chance that the caller solves the query via IVR itself and doesn’t need the assistance of a caller.

3. Call Recording

Call recording is an essential feature for any type of call center setup. With this, the quality of the calls can be accurately measured. Moreover, effective monitoring of calls can be done. In case of escalation of any matter from customers, call recordings can be posed as solid proof, and quick resolution can be brought. The main aspect for which this feature is used is for training and quality purposes.

4. Computer Telephony Integration (CTI)

Nowadays, call center processes are highly advanced, and the integration of different technology streamlines the entire process. The call center solutions provider allows users to operate the software from cell phones so that the agents can attend to calls from anywhere. But it also allows users to integrate the functions of the phone into a computer; as a result, all the call center processes can be conducted from a computer through CTI.

5. Call Transfer

Regardless of the devices used to make or receive calls, the agent must be able to transfer calls easily to another agent whenever required. E.g., if an agent cannot provide a proper resolution to the customer or convince him/her, then at that point, the agent should be able to transfer the call to his superior or experienced agent directly. This will lead to high customer satisfaction as there will be zero waiting time.

6. Desktop Notifications

There are numerous calls that a call center executive has to make and receive in a day. So, there may be instances where the executive might miss calls or any notifications received from the customers. So with the assistance of call center software, you can get notified via mail, text, or on-screen notifications. This way, you won’t be missing any notifications and attend to every customer.

7. Power Dialer

Numbers can be dialed manually, but as there are a lot of numbers to be dialed so, there is a high chance of errors. Also, it is a tiresome process to call hundreds of numbers in a day. Here is where a power dialer comes in. With a power dialer, calls are dialed automatically as listed by the user. With these features, there is no room for errors, and time can be utilized effectively.

8. CRM Integration

For achieving quick and effective operability, integration of CRM and call center software is essential. With this integration, the users can get to know the customers better and provide them with a better solution. In addition, all the current and previous queries of the customers are stored in the CRM. This will help customers develop a stronger rapport and relationship with the organization.

9. Call Whisper

There are many instances where a call center agent needs the support or assistance of seniors or experienced executives during an ongoing call. This is where the call whisper feature comes into play. It assists the agent to collaborate with each other and handle customers effectively. The customers won’t face any disturbance and the executives can have a quick discussion among themselves. Hence it is an essential feature for any call center.

10. Call Analytics

Keeping track of the call center employees’ performance is important for an organization but cannot be done manually. The call center solutions provider offers advanced call center analyst features that map agents’ calling activities. Based on that analysis, the organization can take effective measures to improve call quality and customer satisfaction.

Hence, the above-mentioned features are essential call center setup requirements. There are many call center software providers, but you should conduct an in-depth analysis and choose a provider that best suits your needs.

Benefits of Setting Up a Call Center

More than half of Americans have canceled a planned transaction or purchase because of bad service. On the positive side, according to Forbes,70% of US consumers say they’ve spent more on a company that offers excellent service. 

That said, let’s delve into some tangible benefits of call center setup for your business.

1. Cost Control

Call centers help alleviate operational costs in numerous ways. First, you can save on staffing and call center infrastructure, especially if you opt for a built-to-suit facility.

Second, most of the call center processes nowadays are automated. With benefits like predictive dialing and intelligent call distribution, you can save a substantial amount of time and resources.

Last, good customer service increases customer retention. As discussed, companies lose big money due to poor service. By setting up call centers, you can enhance the quality of your support and increase customer retention rates.

2. Enhanced Customer Experience

Customers want their queries to be resolved instantly. When customers make a purchase, they want to make sure they can reach out to the company anytime.

Ask yourself. Would you shop from a company that has no customer service number? Emails and e-tickets could be a start, but in order to improve customer experience, you’ll need a call center setup.

3. Increased Scalability

We live in a digital era where most customers shop online. Yet, 49% of people say they are reluctant to shop online. Especially if you are selling high-ticket products, relying on online sales could be a catastrophic mistake.

Call centers increase sales and help you avoid lost opportunities. Abandoned carts are prevalent nowadays because a customer wants to make a purchase, but he’s on the fence, doubtful of whether he’s making the right call.

Having a trained call representative contact these customers and solve their queries can go a long way in increasing your sales and scaling your business.

4. Data Security

Data theft and breaches are some of the worst nightmares for any business. Even a small loophole in security can invite the risk of losing sensitive data, leading to potential damage to your reputation.

A call center setup includes impenetrable security features that keep customer and company information safe. You can also add multi-factor authentication to restrict access to sensitive data to selected personnel only.

Moreover, by investing in a cloud-based call center system, you can back up your information and revive it in case of data loss or theft.

5. Improved Call Quality

Trained call center agents work on their feet and can respond to a query on short notice. As mentioned, customers want their issues to be resolved promptly. A call center set up with experienced agents can improve call quality and customer experience.

This holds true specifically for outbound calls. Cold calling or telemarketing is a significant driver of business in today’s digital age. A skilled telemarketer can make a huge difference in establishing fruitful customer relationships and generating consistent revenue.

How Much Does A Call Center Setup Cost?

Call centers can be of various types. Vacated call centers are the least expensive options. They require minimum up-front investment and can be set up quickly. However, vacated call centers may be associated with a hidden center setup cost of mechanical and electrical systems.

You can also convert a former retail space into a call center. These facilities already have large floor plates and ample amenities. On the downside, you’ll need a significant amount of capital to revamp these facilities into fully-functional call centers.

Last, you can opt for built-to-suit facilities. The recent surge in demand for call center space has resulted in the availability of ground-up, built-to-suit call centers. These spaces are developed specifically to meet your needs and requirements. However, these facilities require financial agreements with banks. Thus, only well-capitalized companies should go for built-to-suit facilities.

Depending on the type of call center facility you choose, your costs can oscillate between $2,500 and $10,000. Some key factors that influence call center setup costs are:

• Annual base rental rates ($4-15 per sq. ft.)
• Annual operating expenses ($5-6 per sq. ft.)
• Landlord construction allowance ($0-40 per sq. ft.)
• Tenant construction cost ($0-20 per sq. ft.)
• Furniture ($250-1,000 per workstation)
• Cabling ($250 per workstation)
• IT & Telephony Equipment ($250-750 per workstation)
• Back-Up Generator ($0-$200,000)

A Detailed 7-Step Call Center Setup Guide

Call center setup is a tedious process and requires a hefty investment. So before initiating the setup process, refers to the call center setup guide that will assist you in evaluating different aspects. On the basis of that evaluation, your call center setup journey will be simplified to a great extent.

Step 1: Define the Type of Call Center you Need

Determine the focus of your business and the type of services you provide. You can focus on responding to incoming calls, making outbound calls to customers, or having a blend of both.

Let’s discuss each of these types in brief.

Inbound: An inbound call center provides services like taking orders, responding to inquiries, and customer support. Agents in inbound call centers don’t make calls, but they receive calls from customers.

Outbound: Unlike inbound, outbound call centers focus on outgoing calls. Outbound call center agents engage in telemarketing, lead generation, cold calling, setting up appointments, etc.

Blended: There’s also a third type of call center, which offers a blend of inbound and outbound calling. Referred to as blended call centers, these facilities can make outgoing calls and receive incoming calls.

Step 2: Select the Right Call Center Software

You’re not planning to give your agents a bunch of leads written on paper and expect them to update it manually. Or are you?

A call center agent could be swamped with a dozen jobs other than calling, such as data entry, updating the CRM system, recording calls, and more. A call center solution automates these recurring tasks, ensuring that your agents focus on their primary job – calling.

There are numerous call center solutions of different types and functionalities. Some common types include:

• Interactive Voice Response (IVR)
• Computer Telephony Integration (CTI)
• Automatic Call Distributor (ACD)
• Predictive Dialer

Modern-day call center solutions offer a mix of the aforementioned types to ensure enhanced functionality.

Selecting the right call center software is essential to the call center setup process. So, be mindful of factors like integrations, service, security & compliance, call distribution, and usability.

Step 3: How Callers Can Access your Agents

The next step toward a successful call center setup is to determine how callers will contact your agents. Do they get directly on call? Or do they go through an Interactive Voice Response (IVR)?

IVR: The IVR approach is more efficient. The intelligent automatic responder collects the basic caller information and displays it on the agent’s screen. This way, the agent can access caller information and prepare for more productive interactions.

Self-service: In the self-service approach, your callers connect directly with the agents. This approach is beneficial in outbound calling as the customers won’t have to go through a long IVR process.

Step 4: Define Skill-oriented Groups

Depending upon your operations and requirements, you can define skill-oriented groups. Let’s say you support a SaaS website development tool like Wix or Squarespace. To handle customer queries, you’ll need agents specializing in front-end, back-end, hosting, plugins, and the like.

In the case of an outbound call center, you may need agents that specialize in particular products.

It all depends on the type of call center and its requirements. Just be sure not to go with a one-for-all approach where an agent takes care of everything.

Step 5: Create Data Format for your Dialers

For the outbound call center setup, you’ll need to define the data format for your dialers. This step is essential to program your dialer about where to find phone numbers to dial and how to find qualified leads. As a result, your dialer can automatically dial numbers when you run an outbound calling campaign.

Step 6: Determine the ACD Logic

ACD stands for Automated Call Distribution. The main benefit of setting up the ACD logic is to keep the call waiting to the minimum and distribute the calls equally. The below-mentioned aspect is to be considered while configuring the ACD.

• Real-time queue prioritization: This is an important aspect to consider while setting up the ACD, as all the customers want to wait less. But the customers have to be prioritized on the basis of their queries, and this can be achieved with CRM integration. With this, effective call distribution can be done.
• Determine some agents as sticky agents: Sticky agent means assigning a specific agent to a customer. It means that anytime a customer calls, his/her call will be forwarded directly to the assigned agent. This approach will make it easy for organizations to manage customers and improve satisfaction.

Step 7: Method of Feedback Collection

Getting customer reviews or feedback is essential for analyzing the customer satisfaction ratio and call quality. To get accurate feedback, the best way is to introduce a CSAT survey that will be taken right after the completion of the call from the customer. This will be the last and most important step of your call center setup process.

Hence, to ensure an effective call center setup, you need to follow the steps mentioned above religiously. Following these steps will help you streamline the process and provide you with constant reports on performance, call quality, and customer satisfaction.

Final Thought

According to a survey, 36% of call centers use cloud technology. With the call center market continuously expanding and setup facilities advancing, setting up a call center is easier than ever. Investing in the right call center technology and talent can add a layer of customer satisfaction and scalability to your business.

All in all, it is crystal clear that in current times a call center setup is not complete without call center software. If you want to gain a competitive advantage, then you need to invest in the right system and technology.

Team CallHippo

CallHippo is a leading provider of call center software and VOIP solutions, offering businesses an advanced cloud telephony platform packed with AI-powered features. Their innovative business phone system empowers companies to upgrade communication, improve productivity, and deliver exceptional customer service. With CallHippo, organizations can efficiently manage their calls and enjoy seamless, scalable, and reliable telephony solutions.