5  May 2020

What are the full costs of a call-back system, and how it could potentially bring benefits to your company

How costly is a call-back system for businesses to deploy? Are the costs worthy of bringing high profits? Let’s take a cost-benefit analysis and explore in greater details.


You are reading the Business Development, Services and Marketing (BDSM) Blog. Named to reflect the punishing amount of discipline required to master the core tenets of the industries we service, we blog about current affairs, industry tips, tech developments and more.

     Written by

    JJ Huang


When a prospect wants to connect with your company urgently, the preferred method is a direct call.

77% of people surveyed state that phone calls are the most effective way to get an answer quickly.

What can companies do, then, when they can’t attend to a call during peak hours, but still want to engage the said prospects?

The traditional (and still common) way for many companies is to put the customer on hold until they are connected to the next available agent. Customers can also leave a message in the voicemail if the wait time is too long.

As companies have finite resources, this method seems like a good solution to keep costs low, as it is relatively cheap to implement, and is a common industry practice.

But just because it’s a common practice doesn’t mean customers like it.

In fact, 60% of customers hang up after a minute’s wait. A separate survey also found a correlated statistic that 63% preferred callback options.

Consequently, companies have begun to deploy systems that connect prospects through call-back software.

It allows the caller to book calls and reschedule call-backs, with added functions to analyze leads and allocate call-reps.

It costs more than analog calls and voicemail, which might deter companies from implementing it.

In this article, we explore the prices of call-back software, as well as the full cost of deploying such systems, taking into account the value it brings to your business.


What are the prices and real value of a call-back system?

Browsing through the market for a callback system, it not only contains one single feature but also includes a software analysis package (virtual call center software plan). Thus, the price you pay depends on the additional features you want to include.

For example, callback software Novocall offers three flexible pricing plans with different levels of service provided, ranging from 39 SGD/month to 279 SGD/month, depending on the size and needs of different companies.



Larger companies usually require higher call-back quotas, and more call reps to handle the large call volume.

They also desire additional integrations with other platforms to improve efficiency, and more analysis of call history to be recorded.

Therefore, the costs of call-back software tend to be higher for them. While this cost is numerically higher, it is worth noting that call-back services can increase profits for your business.

Thus, we conduct a detailed cost-effect analysis below to evaluate the real cost of call-back software, compared to that of a traditional call system with voicemail, so that we know which one is more cost-effective for your company.


1. Callback systems increase customer satisfaction

Callback systems are well-liked by most customers, with 75% of customers finding the callback service ‘highly-appealing”.

This isn’t a surprise as callback systems prioritize customers’ time and convenience.

Instead of having to be kept in a hold, they are now offered extra options to choose the best alternative slot, turning the dreadful waiting process into a flexible turnaround.

Compared to other attempts to improve contact efficiency, adding callback software does not require big changes in call reps’ working patterns.

This provides your company with a low-cost, frustration-free approach to improving service levels and customer satisfaction while making deep operational cost cuts.


2. Call-back systems increase the conversion rate

Although lots of online chats and social media are available, a “click to call” function is the most effective way to capture the lead.

Studies have shown that it increases the conversion rate of a site by 200%.

Besides providing a quick connection option, the higher conversion rate can be explained by the callback system’s additional features.

For example, Novocall allows your prospects to indicate their interests in a form before scheduling a call so that the call can be directed to the most suitable team to answer.

This match-up allows you to qualify leads beforehand, greatly improves efficiency, converts more leads, and brings more revenue.


3. Call-tracking increases marketing efficiency

Callback software like Novocall tracks calls and collects data for your team.

This data is then converted into diagrams, generating trends for you to compare business performance more easily.

The system records the customer journey of individual callers, while the CRM analysis function enables you to accurately track which site the customer is directed from.

The marketing team can then identify the most effective marketing campaigns and decide what to prioritize in the future—making your marketing efforts produce higher ROI (Return On Investment).


How traditional call systems & voicemail incur more cost, and why consumers prefer a call-back system

Most of us are still communicating with each other using analog phone systems.

When you call a person and they don’t pick up, you’re then directed to leave a message to the person and wait for them to call you back at a later time.

This system works if you don’t want to discuss urgent matters. It is also cheaper than callback software.

With the monthly subscription, the costs of basic phone-calling are cheap, with voicemail function being included in a telecommunication package for free; if you need prolonged recording time or web-interface, the price goes up to 6SGD per month subscription.

However, when it comes to important business calls, the drawbacks of this traditional call method are exposed.

Although it saves some time for busy call-reps by letting customers hold and offering customers alternative options to leave messages, simply relying on this method brings much hidden opportunity costs and can potentially incur losses, which may override the costs you save by implementing this cheaper option.


1. Communication lag causes loss of leads, and thus revenue

This is the most obvious risk that a traditional call system brings to your business.

Not being able to pick up the call from potential users means loss of business opportunities and revenue.

You might still expect the caller to re-contact you after they are turned down, but the harsh reality is—they won’t.

A report from Computer Weekly shows that 85% of callers who can’t reach the company on the first try will not call back, and that 75% will not leave a voicemail.

Facing so many other options in the field, it is not surprising that your prospects will turn to your competitors who can meet their demands immediately instead of waiting for your response.

Traditional call systems thus create hidden costs associated with loss of business opportunities and an increase in turn-down rate.


2. Long holding time leads to reduced customer satisfaction

“The customer is king.”

This quote has long been one of the golden rules in the business industry.

Essentially, how you treat your customers directly affects how much they are willing to spend on you.

Customer service is extremely important when you engage with your prospect. 86% of the people are happy to pay up to 25% more if they get the right customer experience.

On the contrary, a failure to address your customers with efficiency and quality directly reduces your sales, as 66% of customers will switch companies because of poor customer service.

Putting customers in the virtual hold is far from being an ideal communication method. Customers dislike the feeling of being put on hold as 60% of them refuse to wait more than one minute.

Traditional call systems thus carry high risks of disappointing your customers, turning them away, and adds a bad reputation to your business.


3. Traditional call systems give lower ROI from companies’ ad spend

The marketing budgets can account for as much as 40% of a firm’s spending.

Considering the revenue that a firm generates, this amount of money is definitely not small.

Effective marketing is especially important for startups when they want to break into the market and enlarge their customer base.

Traditional call systems, however, can let this amount of marketing funds go to waste.

As the users develop an interest in your product when they see content articles or social media advertisements, they develop an impulse to connect with you.

But the long process of waiting, having to leave a voicemail and keep waiting to be called inevitably drains their interest as time goes and wastes your massive marketing efforts to attract these potential customers in the first place.


4. Extra costs incurred to improve voicemail efficiency

Tasking inbound agents to respond to voice mail messages can be a very labor-intensive process.

As they respond to voicemails, they are also taken out of the queue to respond to live customer calls; the vicious cycle continues as more customers are kept holding in the queue.

Companies who realize that voicemail is not effective enough need to find improvement, which can be costly and counterproductive.

To fix the problem, your company can hire outbound agents to specialize in managing voicemail messages, and the extra cost of employing more agents might lead you to end up spending more.


40% of customers prefer to speak to a real person than voicemail & 63% prefer a callback option instead of waiting on hold



Callback systems are becoming increasingly preferred by customers, compared to traditional call systems which are gradually losing their place.

Instead of being kept on hold, customers prefer a call-back option. This is supported by the statistics quoted above.

Despite the practical use of voicemail, customers still prefer to speak to a real person rather than leaving cold messages in the data cloud.

They are also less willing to hold and wait, and demand companies to respond with speed and quality.


Weighing in: Callback systems are more cost-effective than traditional call systems

If we only compare the price listing of callback systems and traditional call systems with voicemail, callback software is more expensive as it comes with more functions.

However, the benefits that callback software bring you might very well exceed its costs.

Callback software like Novocall reduces customer holding time, increases customer satisfaction, helps to route calls to the most suitable call-reps, and optimizes your marketing efforts by analysis of data.

Your business structure does not need to shift drastically, but can still be able to reach great improvement overall, saving yourself another amount of restructuring fee.

All these benefits make your money spent worthwhile.

On the other hand, the hidden downsides of using a traditional calling system adds extra burden, as you have to deal with communication inefficiency, customer frustration, and loss of business opportunities.

These, at the end of the day, actually cost you more.

A callback system like Novocall helps you to achieve a higher profit for your business: it saves you more money at the cost side while increasing your sales at the revenue side.

So, start deploying this ideal cost-effective communication solution now! Using Novocall, you can explore and experience how it truly adds value to your business.


You are reading the Business Development, Services and Marketing (BDSM) Blog. Named to reflect the punishing amount of discipline required to master the core tenets of the industries we service, we blog about current affairs, industry tips, tech developments and more.

     Written by

    JJ Huang


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