One of the most important metrics of performance is True Call Booking Percentage. This tells how effective a CSR is at converting a call into a sale. Although many companies do not track this metric, it is a very important measurement of a business. As a Business Owner, Manager, or CSR; call tracking should be a high priority.
Each time a call is not booked, it costs the company $450- $800 or more in lost revenue from the start. That number varies by industry and company. But the costs of the lost call do not end there, they multiply based on the lifetime value of a client.
Break Down Cost of not Booking a Call
- Cost of acquiring a new client: $150-$500
- Average ticket SET Goal: $800
- Lifetime Value of a client $1,200 – $1,500 annually
- Average years of customer: 7
Total Lost Revenue per call not booked: ≈ $8,400
Each time the phone rings there are thousands of dollars on the table. As a CSR it is your job to capture that opportunity, nurture the opportunity, and maximize the opportunity.
The average CSR is only booking at about 50% of incoming calls. Let’s say that 75-90% of those should have been booked. So, there is 25-40% of lost calls left on the table. What does that look like over a year?
Example:
- Incoming calls 1,000
- Actual Calls Booked 500
- 85% KRA Standard 350
- Difficult to book 150
What does the revenue lost look like for the 350 calls that are not being booked? Lest start with the costs that are already being spent on those 350 calls going unbooked per 1000 calls coming in.
- Acquisition Cost $150
- Calls not booked 350
- Expense with zero revenue $52,500
Now let’s look at the revenue lost from not booking those 350 calls. The average ticket used will be the low end of SET’s goals. The actual number will vary based on industry and company. But it would include, service, maintenance, and replacement.
- Calls not booked 350
- SET average ticket goal $800
- Lost Revenue $280,000
From this example, it is clear that unbooked calls contain a high revenue potential. What would your financials look like if more of your marketing dollars were converting into revenue? Your company would be more profitable.
Although these are examples, I would challenge you to look at your real numbers. How many calls are not booked each day, week, month? How many of those should have been booked? Then do the math, include marketing costs, average ticket, and your average lifetime value of a client. I know you will be surprised at how fast it adds up.
The Transformation of Arnold Electric
