Comparison
The Cost of Missed Calls
Before comparing solutions, work out the size of the problem. This page sets out how to calculate what unanswered calls cost your business, using your own numbers rather than borrowed statistics.
The four figures you need
- Calls that went unanswered last month
- What share of answered calls become customers
- Average value of a customer to you
- What you spend to generate an enquiry
Use Your Numbers, Not Ours
Vendor pages in this category usually open with an industry statistic about how many calls businesses miss. We are not going to do that, because the figure varies enormously and quoting someone else’s average tells you nothing about your own position.
Your telephony provider holds the data that matters. Unanswered calls, calls that reached a busy tone, out-of-hours volume and average wait before abandonment are all recorded, and most businesses have never looked at them.
Pull those figures first. The calculation below only becomes useful once the inputs are real.
Working It Out
| Step | What to find | Where it comes from |
|---|---|---|
| 1 | Unanswered calls per month | Telephony reporting, including busy and out-of-hours |
| 2 | How many were new enquiries | Estimate from your call mix, or sample the numbers |
| 3 | Your enquiry-to-customer rate | Sales records for calls you did answer |
| 4 | Average customer value | First job value, or lifetime value if you have it |
| 5 | Acquisition cost per enquiry | Marketing spend divided by enquiries generated |
| 6 | Monthly exposure | Steps 2 × 3 × 4, plus step 5 × step 2 |
Step six adds two separate losses: the business you did not win, and the marketing money already spent generating the enquiry that went nowhere. Both are real, and businesses usually count only the first.
Where the Estimate Goes Wrong
Reasons the figure overstates
- Some callers ring back and do get through
- Repeat dials count twice in the raw data
- Existing customers are more patient than new ones
- Not every missed call was a genuine enquiry
- Some enquiries would never have converted
Reasons it understates
- Calls never placed because the line was engaged before
- Referrals lost with each customer not won
- Reviews and repeat business that follow good service
- Staff time spent returning calls late
- Reputational effect of being unreachable
What the Number Is For
It is a decision threshold rather than a forecast. If your monthly exposure is comfortably larger than the cost of addressing it, the decision is straightforward. If the two are close, it probably is not worth doing yet.
Be conservative deliberately. Use the low end of your conversion rate and the first-job value rather than lifetime value. A case that survives pessimistic assumptions is one you can act on.
The practical approach to closing the gap is described under missed call recovery, and the cost components on the pricing page.
Questions People Ask
What if we cannot get the call data?
Most providers can supply it on request. Where they cannot, a month of manual logging gives a rough but usable picture.
Should we use lifetime value?
It is more accurate but harder to defend internally. We usually suggest running the calculation both ways.
Do all missed calls represent lost business?
No. Wrong numbers, sales calls and repeat dials all inflate the raw figure, which is why step two exists.
What is a reasonable payback period?
That is your judgement. Many businesses want the exposure to exceed the cost several times over before acting.
Will you help us do this?
Yes, and if the numbers do not support a change we will tell you.
Put a Number on It First
Send your call data and we will work through the calculation with you, including the reasons it might overstate the case.