Disclaimer: This guide is for informational purposes only and does not constitute formal legal or financial advice. Always consult with a qualified attorney before launching a communication business.
Starting a call center can be an exciting way to establish a highly profitable business.
Many companies worldwide need expert help with customer support queries, tech support issues, or new outbound sales leads.
However, without proper planning, you can end up losing money.
This article avoids complicated jargon, and you’ll learn straightforward steps to start a successful call center.
Quick Summary
- Go Virtual – Starting a cloud based call centre is much more affordable and faster to set up compared to a physical space and big hardware.
- Watch out for Legal Issues – Getting caught out with telemarketing and data laws can ruin your business instantly. Always clean your calling lists.
- Plan Team Size – Track your average call volumes so you know how many staff members you will need.
Decide What Type Of Call Center You Want
Before spending any money on equipment, you’ll need to decide what type of call center you want to set up. The two main things you’ll need to consider are:
Inbound or Outbound
Inbound centers receive calls from customers. Your agents will answer queries, solve technical issues, handle billing issues, or take order details.
Moreover, outbound centers make calls. Your team will focus on selling, finding new leads, conducting surveys, or collecting debts.
Physical Or Cloud Based
Physical call centers require you to rent office space and invest in local servers, backup power supplies, desks, and wired telephony lines.
This gives you full control over your data. However, it costs a lot of money to set up.
Cloud Based call centres can be fully set up online. Agents will work from their own homes using secure cloud accounts. Initial costs are minimal.
Legal Requirements
Ignoring the legal requirements when learning how to start a call center can leave you vulnerable.
Moreover, government regulators can impose huge fines on call centers that don’t follow communication and privacy rules.
· Calling Registries (TCPA)
Firstly, when making outbound calls, you must check your lead sheets against the National Do Not Call Registry once a month. Calling numbers on this list can cost thousands per call.
· STIR/SHAKEN
Secondly, carriers will actively block or mark any calls that don’t have verification. Your systems must have proper caller ID verification to make sure your calls reach people.
· AI Calling
Also, due to recent regulations, if you’re using an AI voice/synthetic agent to make your outbound calls, you must obtain the same strict permission as if you were manually calling.
· Data Security
If you’re taking credit card payments, your software must be fully secure. You must not write down or record any card numbers.
You must also follow data privacy laws with your customers.
Calculate Your Costs
Your initial costs will vary depending on whether you want to rent a physical space or employ remote agents.
Initial Costs
If you want a physical office, you’ll need to rent commercial space and set up fiber lines, security cameras, desks, and computers. Initial costs for basic hardware can be over ₹4,000,000 (approx. $50,000).
If you’re going cloud-based, you’ll need some laptops, quality headsets, and software accounts. Initial costs for a small number of agents will be much less.
Monthly Costs
You will be charged monthly fees for your Call Center as a Service (CCaaS). These usually range between ₹6,000 – ₹16,000 per month per user ($75 to $200).
Moreover, you will also need to invest in a Customer Relationship Management (CRM) system.
Tools & Tech That You Need!
Your business will need clear phone calls. If your lines drop or call quality is poor, clients will cancel their contracts.
A. Software
You’ll need to select a trusted cloud communications provider such as Talkdesk, Five9 or Amazon Connect. This will give you the following 3 tools:
- Automated Menu (IVR): Voice menu asking the caller to press 1 for sales or 2 for support.
- Smart Routing (ACD): An internal routing system that sends calls to the next available agent who can solve the problem.
- CRM: Automatically opens up the customer’s history on the agent’s screen.
B. Hardware
Ensure all your agents have high-quality USB noise-canceling headsets (Jabra/Poly). They must have laptops with 16GB+ RAM so the software doesn’t lag.
Moreover, you also need to ensure they are using a fast wired connection if working from home.
Employ Good Staff
Finding good staff can be tough. The industry is well known for having high staff turnover, with many call centers losing 35-45% of their agents per year.
A. Staff Numbers
Don’t guess how many staff members to employ. Look at your contract requirements.
If you expect a high volume of calls at 10 AM, then ensure you have enough agents logged in to handle it.
Don’t fall short, as this will cause long wait times and unhappy clients.
B. Training
Replacing trained staff can be very expensive. Create a solid training program for your agents.
Give them at least 2 weeks of training on the products and software.
Moreover, you have to allow them to practice live calls with a senior manager listening in to give them tips.
How To Monitor Performance
You’ll need to constantly monitor how well your agents are doing to keep your business profitable. Monitor the following:
- Average Handle Time: How long agents spend speaking with customers and typing notes.
- First Contact Resolution: Percentage of customers who had their issue fully solved on their first call.
- Customer Satisfaction: Short survey filled out by customers.
- Occupancy Rate: Percentage of the time agents are actively on calls whilst logged in.
Potential Obstacles You Might Face!
Hidden obstacles can affect a call center. Knowing how to overcome them will keep your business safe.
A. Power/Internet Failure
If you’re running a virtual call center, your agents depend on their local infrastructure.
If a storm hits and they lose power, your service will suffer. You must have a backup plan.
Require your agents to have a backup internet hotspot. Or set clear guidelines for reporting an outage instantly so your system can route calls to other active agents.
B. Lag & Packet Loss
Voice data over the internet can cause lag. This causes the audio to be choppy which will frustrate your agent and customer.
So, run regular auto-testing on your team’s home networks.
Positive Working Environment
Call centers can be a stressful industry, so focus on creating a positive working environment for your team.
Good Communication & Feedback
Your agents will get frustrated hearing the same customer complaints.
Moreover, you need to ensure your managers are giving balanced feedback. Don’t just highlight where they went wrong but also when they did something exceptional.
Rewards
Small reward schemes can really help. Thus, you need to encourage them to work hard by offering small gift cards or shout-outs for the highest resolution rate or attendance.
How To Start A Call Center: Find Your First Clients
After setting up your system and training your agents, you’ll need to find clients.
Target Specific Markets
First, you need to start by targeting mid-sized businesses that are getting overwhelmed with customer calls.
Great industries to target are e-commerce shops, medical clinics, software startups, and local delivery.
Charging
Per Minute: Charge your client for the exact amount of minutes your agents spoke to them. This is great for businesses with unpredictable call volumes.
Dedicated Agents: Charge your client a fixed monthly fee for a set number of agents to work solely on their account. This gives you steady income.
Conclusion & Next Steps
Overall, starting a call center means choosing the right cloud software, staying legal, and supporting your agents.
Start simple and go with a virtual call center. This will reduce any financial risk.
Now you must decide on which niche you want to work in. Technical helpdesk support or medical billing.
Moreover, research the top cloud software providers. Ensure your business has the correct legal licenses.
So, start approaching local businesses that need help with their phones.
