Resource Center - Industry Articles
Missed Calls Are Missed Opportunities
by Jas Jackson, CallSource Director, HVAC, May 27 2010
The telephone is the livelihood of any HVAC Contractor. A Contractor’s Brand is built on the foundation of the first phone call. There is also a direct correlation between appointments set and revenue generated for the business. Simple math: The more conversations Contractors have with prospective consumers, the more opportunities they have to make a sale, whether for an installation, or maintenance of an existing unit.
Consumers are fickle. When something goes haywire with their equipment, they want answers and they want them now. You know as well as I, if consumers do not reach someone when they need to, their next call will be to a competitor down the street.
Why give your competition the opportunity to take your business?
To reduce missed opportunities, route calls throughout the day. Contractors must strive to answer 100% of consumer calls. A single missed call may mean the loss of a $10,000 installation to a competitor. If you’re not using technology to ensure all calls are being answered, you may not be getting the return you expected from your marketing. For every call that goes unanswered, additional marketing is needed to hit your target sales.
Let’s look at an average HVAC Contractor with no additional ad spend:
- Annual Revenue: $1.5 Revenue
- Marketing spend: 3% - 7% of total revenue
- 60% Install, 40% Service
- HVAC installation selling price: $7,000
- Closing Ratio: 33%
- Lead Conversion Rate: 60%
- On average, Contractors ONLY answer – 92% of incoming phone calls
- Most missed opportunity calls come in around the lunch hour (12p-1p) and after work (5p-6p)
How much more business could you generate if you increased the number of conversations by 8%?
Typically, a Contractor receives roughly 175 phone calls for replacement/retrofit installations per month. Eight percent missed calls translate to 15 missed conversations or an additional 3 sales or $21,000 per month. Simply by answering the phone, a Contractor can improve cash flow, fill capacity, and hit the growth goals set at the beginning of the year.
You can’t manage results; you can only manage the process. It’s time to begin doing more with what you have and holding your team accountable. Any Contractor can spend more in advertising to receive more calls, but that does NOT make you more profitable. Use technology to route calls throughout the day, whether it’s to a Customer Service Representative, Service Tech, Sales Coordinator, or even yourself, the Owner. Missed calls are missed opportunities. Answering the phone is the first step to building your brand, becoming more profitable, and ensuring your success.
Jas Jackson, Director of HVAC for CallSource, (888) 988-HVAC
