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Glossary

What is Incremental Revenue (Value) Analysis?

The process used to calculate and derive the value of each executive working in a call center is called Incremental Revenue (Value) Analysis. The value derived using this tool is not an exact value, but an approximation and it is calculated by cost/revenue analysis. Once the value is calculated, this information is used to define the organization wide effects of increasing or decreasing the number of call center agents. It is a hands-on and commonly used device by call centers in India to make decisions.

Decision making is tough and making decisions in business are tougher. To help managers take decisions, there are tools like Incremental Revenue (Value) Analysis that help them analyse the entire situation and arrive at a suitable decision. In layman’s language, as we consider the costs before taking any decision like what vehicle to buy or whether to buy a home or rent it, call centers also consider the overall effect of their decisions. Therefore, before taking important decisions like hiring or letting go off an agent, call center managers analyse the situation using incremental revenue (value) analysis. This helps managers to put a value to each agent. Though, the use of this tool does not ensure that a manager will always take the best decision, but it helps by providing a layout for managing pertinent information and analysing the decision to be taken from a wider and analytical viewpoint.

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