The Center of CX
Subscribe
Cost per Contact

What does a contact cost, and what does a resolution cost?

A $7 call that takes three contacts to resolve is a $21 resolution. This tool separates the cost of handling a contact from the cost of resolving an issue, and keeps four figures apart: the cost you report, the repeat-demand burden, the capacity an FCR gain releases, and the savings you can realize.

Question 1 of 3 · Volume and resolution
Volume is
%
First contact resolution: the share of issues solved on the first contact
Total contacts an issue takes when the first contact does not resolve it, counting the first. One contact plus two follow-ups is 3.0
Question 2 of 3 · Cost basis

Filled from your TCO (total cost of ownership) run when you have one.

$
Full cost of one contact: labor, benefits, platform and facilities
$
The variable cost that goes away when one contact does
$/hr
Used for the channel costs below
hrs
Hours a full-time agent spends handling work after breaks, training and absence (about 140)
Question 3 of 3 · Capacity action

What you will do with the agent time an FCR gain frees up. Freed time turns into money only through one of these actions. No capacity action: realizable savings stay $0 until you commit to one.

The burden is the marginal cost of all repeat demand. Read it as a ceiling: FCR never reaches 100%, so you will never release all of it. Below are the capacity a realistic FCR gain releases and the part your capacity action can turn into savings.

Integrity checks

Repeat demand is 28% of all contacts. At this level it is a resolution problem: raising FCR reduces it, while a lower price per contact leaves every repeat in place.

Unknown
Your choice is still openNo capacity action selected: realizable savings are $0. Choose how freed time will be used (less overtime, hiring avoided, vendor reduction or headcount) before you present any savings figure.

What an FCR gain releases, and what you can realize

Released is the agent time the gain frees, valued at marginal cost ($4.20 a contact). Realizable is the part your capacity action turns into savings (Not selected).

FCR +5 to 77%Operational
Released
$127K/yr
Realizable (0%)
$0/yr
2,514 contacts avoided a month · 1.8 FTE
FCR +10 to 82%Root-cause work
Released
$253K/yr
Realizable (0%)
$0/yr
5,029 contacts avoided a month · 3.5 FTE
FCR +15 to 87%Transformation
Released
$380K/yr
Realizable (0%)
$0/yr
7,543 contacts avoided a month · 5.3 FTE

Channel handle economics

Agent labor only. Chat costs less per contact than voice because an agent can handle several chats at once (concurrency). Blended across your mix: $2.73 a contact. An average hides complexity, so move only simple contacts that the new channel can resolve. Model a move in Channel Shift.

Voice60% of volume
AHT (average handle time)
7m
Per contact at 1 at once
7.0m
Handle cost
$3.27
Handle spend
$98K
Chat25% of volume
AHT (average handle time)
9m
Per contact at 2.5 at once
3.6m
Handle cost
$1.68
Handle spend
$21K
Email15% of volume
AHT (average handle time)
5m
Per contact at 1 at once
5.0m
Handle cost
$2.33
Handle spend
$17K

What it means

The cost you report, the capacity you release and the savings you realize are separate figures.

Each contact costs $7.00 fully loaded, and each resolved issue costs $9.74, 39% more. The difference is repeat demand: 28% of handled contacts are repeats about an issue that was not resolved the first time. The repeat rate drives the cost of a resolution, so that is the lever to study first.

The repeat-demand burden is $59K/mo, the marginal cost of handling every repeat contact, or 9.8 FTE (full-time equivalents) of agent time. Read it as a ceiling. You will not release all of it, because FCR never reaches 100%, and none of it is a saving on its own. The FCR steps below show what a realistic improvement releases.

Lifting FCR 10 points to 82% releases $21K/mo of that burden as agent capacity, which becomes cash only through the capacity action you choose. That is $0 for now because no capacity action is selected: the capacity action above still reads "Not selected". A 10 point FCR gain usually takes root-cause work on processes, knowledge and systems. Treat +15 as a transformation case and plan on smaller steps.

Cost per contact and cost per resolution use the fully loaded cost, which is the right basis for unit costs. The burden and the released figures use the marginal cost. Realizable is the released figure scaled by the capacity action. These are four different numbers, and the report keeps them apart so that a saving is never read off a unit cost.

Why FCR Leakage gives a different repeat cost

Both tools price the same repeat contacts. On your inputs here, each model gives:

  • $710K a yearCost per ContactThis pageYour M of 2.4 contacts per unresolved issue, each repeat at marginal cost
  • $551K a yearFCR LeakageOne callback: each unresolved issue comes back once (M of 2)
  • $706K a yearFCR LeakageGeometric: a callback can fail too (M of 2.39)

Why they differ

  • The tools agree on first contact resolution and on volume. They differ on what an unresolved issue does next: Cost per Contact asks you how many contacts it takes in all (M), and FCR Leakage picks a model, where one callback is the same as an M of 2 and geometric the same as an M of 1 plus 1 over your FCR.
  • Both price a repeat at your marginal cost here, because the repeat complexity multiplier is 1.0.
  • Use the row whose model matches what your own data shows about repeat contacts. Neither is a saving: both are the cost of all repeat demand, and a saving needs an action that removes it.

Open FCR Leakage · How Cost per Contact works

How others report it

Published figures to hold your result against. Each measures something slightly different, so read what it counts before you compare. None of them changes your result or its grade.

First contact resolution by industryBenchmark study

SQM Group's 2026 averages, from a post-call customer survey of SQM's benchmarked North American inbound customer service call centers. Industries SQM does not publish, such as manufacturing, education and travel, have no figure here.

SQM Group, updated 20 Aug 2026. First Call Resolution Benchmark (FCR Benchmarking by Industry 2026).
  • 71%All industries
  • 77%Retail
  • 75%Insurance
  • 70%Financial
  • 70%Energy and utilities
  • 70%Government
  • 69%Health insurance
  • 56%Telco
  • 73%Not-for-profit
  • 64%Tech support
  • 69%All industries, 2024 resultsSQM Group, 6 Feb 2025. Call Center FCR Benchmark 2024 Results by Industry.
Cost of an inbound callBenchmark study

A cross-industry US average reported by contact centers. No free source publishes cost per contact by industry, so none is shown.

  • $7.20Average cost of an inbound call, US47% more than an email and 23% more than a web chat, as ContactBabel states it.ContactBabel, 2026. The 2026 US Contact Center Decision-Makers' Guide, key findings.
Agent pay where your agents workOfficial statistic

The US Bureau of Labor Statistics median for customer service representatives, May 2025. The tool opens at the national median; if you know your own pay, enter it in the tool.

  • $21.53Median hourly wage, customer service representatives, United States$44,770 a year, before benefits. Half earn more, half less.US Bureau of Labor Statistics, read on O*NET OnLine, May 2025. Occupational Employment and Wage Statistics, May 2025, Customer Service Representatives (43-4051), by state.

Take this with you

EvidenceDirectionalRealizationDirectionalCompletenessFinance-gradeHeadlineDirectional

The report downloads immediately. No email required, no wall.

Method 1.1, published 28 September 2026. How this is calculated

This scenario is too detailed to fit in a link. Download instead.

A person on our team sends it, usually within one business day. Your address is used to send this report and to reply if you ask a question. Nothing you entered leaves your browser unless you send it here, and the download never asks for it.

Run this next

Each result raises a sharper question. This is the diagnostic that answers it.

FCR Leakage →
Repeat contacts inflate cost per resolution. Find out how much of it is controllable.

Have someone read it

Send this analysis for an independent review. You get a written read on what the numbers support, what they do not, and which diagnostic is worth running next. No sales call. No vendor introduction.

Cost per resolution
$9.74
$7.00 per contact, 1.39 contacts per issue
How sureDirectionalHeld by evidence and realizationShows the direction and rough size. Something behind it is still a default, an estimate or an open choice.

Contact volume, FCR and M are still at the tool default. Loaded cost and marginal cost are still at the tool default. No capacity action is selected, so no released capacity converts to cash.

The four numbers
Cost per contact, fully loaded$7.00
Cost per resolution1.39 contacts per issue, 39% above$9.74
Repeat demand share14,080 repeats a month28%
Repeat-demand burdenMarginal ceiling, 9.8 FTE$59K/mo
Cost per resolution$9.74See the result