The Pressure to Cut Costs Without Compromising CX
In a economy where customer expectations continue to rise and labor costs inflate, the pressure on contact center managers to reduce operational expenses (OpEx) is greater than ever. But cost-cutting does not have to mean sacrificing service quality for your customers — not when the latest artificial intelligence (AI) and automation are on your side.
This article reveals the most effective call center cost reduction strategies, backed by automation, relevant analytics and Agentic AI from platforms like Teneo.
1. The Hidden Cost Drains in Traditional Call Centers
Even the best-run contact centers leak budget in areas like:
- Idle time & overstaffing
- Inefficient and inaccurate call routing
- Manual data entry & slow CRM syncing
- High average handle time (AHT)
- Lack of 24/7 service availability
These are not problems with simple fixes — but they are problems that AI is uniquely qualified to solve.
2. AI-Powered Call Routing: Speed + Accuracy
AI-enhanced IVR (Interactive Voice Response) systems, like those built with Teneo.ai, can intelligently route calls based on:
- Sentiment analysis, by detecting the urgency and sentiment behind the call.
- Previous interactions, based on triaging, for example if a customer calls back after just hanging up, or right after a missed delivery.
- Customer tier (VIP, at-risk, etc.)
Cost Impact: Up to 30% reduction in agent time that is being wasted on unnessecary calls.
3. Self-Service Channels Cut Repetition Costs
Most customers usually call for the same reason, if there’s a power outage the calls will spike, or users are always going to ask for delivery updates. This is where using a platform like Teneo to deliver Voice AI comes to play. Voice AI powered by NLU can handle 60–80% of repetitive queries — from password resets to delivery statuses. They’re always on, don’t need breaks, and can deflect calls from your human agents.
Teneo.ai tip: Use intent-based AI Agents that escalate when needed — saving labor without hurting your core customer satisfaction (CSAT). See more proven cost reduction strategies for call centers.
4. Access to Relevant Analytics Prevent Future Losses
AI-driven analytics platforms offer relevant visibility into:
- Drop-off points in IVRs, where are customers facing the most problems? Is your customer journey correctly built?
- High-effort interactions, which paths can be automized or built more effectively for customers?
- Agents struggling with efficiency
With this data, you can correct course before waste becomes a trend.
5. Outsourcing? Only When AI Can’t Handle It
Outsourcing still has a role — but now, AI can handle the first wave and the low hanging fruits, which usually captures 40% to 50% of the calls, reducing the number of escalations and hours billed to BPO partners.
6. Measure the ROI of Automation with the Right Metrics
Don’t just look at cost per contact — track:
- Deflection rate (% of inquiries handled by AI)
- Average handle time (AHT) reduction per channel
- Savings from staffing efficiencies
- CSAT improvements from AI-assisted service
What’s the Real Financial Impact of AI in Your Call Center?
To give you a sense of the scale, here’s a real-world breakdown of call volumes, inefficiencies, and the savings potential when AI automation is deployed effectively across a high-volume contact center:
Key Data Points:
- Total Monthly Calls: 2,540,000
- Calls Lost Monthly: 120,748 (4.8%)
- Redial Attempts per Resolution: 2.5
- Cost per Call: €1.50
- Agents: 10,000
- Misrouted Call Rate: 10%
- Agent Hourly Cost: $30
Estimated Annual Cost Savings:
- Misrouted Calls Reduction (10%) → $7,299,753
- Improved Self-Service Automation (20%) → $14,599,506
- Reduction in Redial Attempts → $109,496,295
- Total Annual Savings Estimate: $131,395,554
Want to go deeper? Download our whitepaper on calculating ROI with AI agents for a step-by-step guide to building your business case.
Interested in seeing your own numbers?
Conclusion: Automate Smarter. Reduce Faster.
Cutting costs doesn’t mean cutting corners. With a platform that can deliver Agentic AI like Teneo, you can eliminate inefficiencies while boosting your customer experience (CX).
Start saving today — book a Teneo demo and see your real ROI in weeks, not months.
FAQs
What is the fastest way to reduce call center costs?
Implementing conversational AI and automating repetitive inquiries is often the fastest, most scalable way to reduce costs in call centers.
How much can AI save my call center?
On average, AI can reduce total operational costs by 15–30%, depending on call volume and automation scope.
Can AI replace agents entirely?
No — but it can deflect up to 80% of repetitive tickets, freeing agents to focus on high-value, complex issues.