What is Cost Per Resolution
Cost per resolution definition: Cost per resolution is a metric that helps businesses understand how much it costs to solve a customer issue.
It's basically a way to measure the efficiency of a company's customer support team. It takes into account factors such as the time spent by support reps on a given issue, the tools and resources used to solve the issue, and any other costs associated with resolving the issue.
By tracking cost per resolution, businesses can identify areas for improvement and optimize their support processes to reduce costs and improve customer satisfaction.
How is Cost Per Resolution calculated
Calculating cost per resolution involves taking the total cost of providing customer support, including salaries of support staff, overhead costs, and any other expenses, and dividing that by the number of issues or tickets that were resolved during a given period.
Total cost of providing customer support / Number of issues resolved
For example, let's say a company spends $10,000 on customer support in a month and resolves 1,000 customer issues during that same time period. The cost per resolution would be:
$10,000 / 1,000 = $10 per resolution
The resulting number represents the average cost to resolve one customer issue.
What is a good cost per resolution?
Generally speaking, a lower cost per resolution is better, as it means the company is resolving customer issues more efficiently and at a lower cost.
However, it's important to strike a balance between cost and quality of service, as providing excellent customer support may sometimes require a higher cost per resolution. It's also worth noting that businesses should monitor cost per resolution over time and look for trends and changes, rather than simply aiming for a specific number.
Ultimately, the goal is to continuously improve the support process and find ways to provide faster, more effective support to customers.