Pros and Cons of Pay-Per-Minute, Cost-Per-Call, and Cost-Per-Install Pricing Models

For companies with inconsistent call volumes, a per-minute pricing model is a good option. It allows them to avoid the expense of paying for unnecessary downtime. It also helps them to reduce costs by reducing unneeded contacts through better self-service, automation and improved first call resolution rates.

But it’s important to remember that lowering PAY PER CALL isn’t the end goal.


The cost-per-call is an important call center metric that gives you a clear indication of your total operating costs. However, lowering this metric should not be the sole objective of your call center operations. It’s important to consider the overall customer satisfaction when reducing this KPI.

One way to reduce your cost per call is to optimize first-call resolution rates. This involves routing customers to the right advertiser or agent. Invoca’s AI call tracking, analytics, and attribution capabilities can help you do this by automatically identifying the best advertiser to connect with based on the type of caller and the context of their request.

Another important factor is reducing the amount of time your agents spend on each call. This can be done by implementing skills-based and intelligent routing, as well as using tools that allow you to track second-to-second billing. Another option is to move some calls to non-phone based interactions, such as natural language IVR, email, chat, or social media.


Identifying your cost-per-lead is essential for measuring the effectiveness of your marketing campaigns. It helps you set sales goals and determine how much to budget for each campaign. It also allows you to develop solutions for lowering your CPL. For example, if you have an Adwords campaign with the highest CPL, you can look for ways to improve its performance by targeting low competition and long-tail keywords or increasing the quality of your clicks.

The ideal CPL depends on your industry, company size and annual revenue. However, a good CPL should be equal to or less than your gross profit per sale.

Companies who prioritize efficiency and speed should consider using a pay-per-transaction model, which is based on a metric like completed transactions or minutes used. This way, you can incentivize your agents and providers to work quickly without sacrificing quality or customer satisfaction. This pricing model is also a great fit for help desks and other high-priority services.


Pro: It’s a simple pricing model that works well for companies who want to focus on providing enhanced customer experience. This type of pricing model helps to motivate agents and providers to be efficient, which may improve call handling time. However, it is important to consider tracking operational and experience metrics alongside sales conversion rates to ensure that speed doesn’t erode quality of service.

This model is also great for businesses that have low call volumes or one-off calls. It allows them to pay only for the time they use, which can save a lot of money in comparison with hourly prices.

CPS is a useful metric, but it does not reveal the true value of a campaign. It is not a reliable measurement for the cost of call-based marketing, as it does not account for sales that occur after campaigns have ended. A more accurate measure is to analyze call-based revenue versus total costs for each campaign.


Cost-per-install is an app marketing pricing model that charges advertisers for each new install of their mobile apps. This approach is a great way to expand your app’s user base, drive engagement, and push it higher up in the store rankings. It also provides a clear way to compare and evaluate your app against the competition.

This metric is important for both app developers and marketers. It helps them determine how much to spend on marketing campaigns and track their ROI. It’s often used in combination with effective CPI (eCPI), which is calculated after the campaign has ended.

Getting more granular with call-cost analysis can be a useful step in improving your contact centre strategy. It can help you identify expensive call types and make changes to reduce costs. It can also highlight what kinds of calls are worth investing time in. This will allow you to focus on your highest-value customers. This will also improve the overall customer experience and lead to better retention.