What do missed calls cost a contractor?

The cost of missed calls for a contractor is the number of missed calls a week, times the share of callers who hire you, times your average job. With example numbers of 3 missed calls, 30% and $800, that comes to $720 a week, or $37,440 a year. Your numbers will differ, so this guide shows how to work out your own and how to catch more of those calls.

The formula for the cost of missed calls

You need three numbers:

1. Missed calls a week. Calls that went to voicemail or rang out, where the caller didn’t call back or leave a message you returned.
2. Your close rate. Out of every 10 people who call about a job, how many hire you? 3 out of 10 is 30%.
3. Your average job. What a typical job is worth to you in revenue.

Multiply them to get the weekly cost. Multiply the weekly cost by 52 to get the yearly cost.

Missed calls a week × close rate × average job = cost per week

The missed call calculator does this math for you. Put in your own numbers and it shows the weekly and yearly totals. No email needed.

A worked example

These numbers are assumptions for the example, not averages from any study. Swap in your own.

Each missed call in this example is worth $240 on average, which is 30% of $800. Catch one more call a week and that’s $12,480 a year in jobs you would otherwise not have had the chance to win.

The same math works in both directions. If your average job is $5,000, three missed calls a week at a 30% close rate is $4,500 a week. If your close rate is 10%, the number shrinks. The point isn’t the exact figure. It’s knowing roughly what a missed call is worth to you, so you can decide what it’s worth spending to catch them.

Read the number with care

The formula gives you an estimate, not a bill. Keep three things in mind.

• Not every missed call is a lost job. Some callers ring back, some are spam, and some leave a message you return in time. Count only the calls that went nowhere.
• Revenue isn’t profit. The average job is what the customer pays. What you keep after materials and labor is less.
• Use your real close rate. Your close rate on calls may differ from your rate on web leads or referrals. Use the one for calls.

How to count your missed calls

This number is easy to guess wrong. Count it for two normal weeks instead.

• Check your phone’s call log, or your business phone app’s missed-call report if it has one.
• Count calls you didn’t answer, then take out the ones you returned and reached, and the obvious spam.
• Note when the misses happen. Mornings on a job, lunch, evenings and weekends tell you different things.

Two weeks of real numbers will tell you more than any industry average.

Ways to catch the calls you miss

Once you know when you miss calls, pick the fix that matches. You can combine them.

Answer live more often

The best outcome is a person picking up. If you’re on a job all day, forward calls to someone who isn’t: an office helper, a family member who handles scheduling, or a second phone in the truck. Even covering the busiest hours helps.

Build a callback habit

Set fixed times to return every missed call, such as mid-morning, lunch and end of day. Call back the same day at the latest. A caller who doesn’t hear from you may be calling the next contractor on their list. Change your voicemail to say when you return calls and point people to your quote form.

A quote form that works after hours

Some people would rather type than talk, especially in the evening. A short quote form on your website lets them ask for a quote at 10 p.m. without waiting for you to pick up. The contractor website checklist covers what the form needs.

Lead alerts to your phone

A form only helps if you see the request quickly. Set it to send each request to your phone by text and to your email the moment it arrives, with the customer’s name, number and what they need. KLR Performance’s websites work this way, and other website builders and form tools can do the same if you set them up.

An answering service

An answering service puts a live person on the line when you can’t answer. They take the caller’s details, and some can book appointments. Ask how they charge, whether by the minute or by the call, and test it by calling yourself a few times.

Missed-call text-back

Some phone systems can send an automatic text to anyone whose call you miss, such as “Sorry we missed you. We’re on a job. Reply with what you need and we’ll call you back.” That keeps the conversation going until you can call. Texting customers comes with rules on consent and opt-outs, so check them with your phone provider before you switch it on.

What to do next about the cost of missed calls

Run your own numbers in the missed call calculator. Count your missed calls for two weeks. Then pick one fix for the time of day you miss most, and count again.

The free website score asks who answers your calls after hours, along with how well your site and Google profile turn visitors into calls. If your Google profile is bringing in fewer calls than it should, the Google Business Profile checklist is the place to start.