Strategy
How Much Does a Missed Call Cost Your Business?
A simple framework to estimate what missed calls cost your business, with a worked example and a free calculator.
By the TextBack team · · 2 min read
Every business knows missed calls are bad, but few know the number. The good news: you can estimate it with four inputs you already have.
The formula
- Missed calls per month
- Share of those callers who would have become a real lead
- Share of leads you typically close
- Average revenue per job or customer
Multiply them together: missed calls × lead share × close rate × average job value = monthly revenue at risk.
A hypothetical example
Suppose a plumber misses 30 calls a month, half are genuine job inquiries, they close 40% of inquiries, and an average job is worth $400. That is 30 × 0.5 × 0.4 × $400 = $2,400 a month. These numbers are illustrative; yours will differ.
Do not forget lifetime value
A first job often leads to repeat work and referrals. If a customer is worth several jobs over time, the true cost of a lost lead is higher than one invoice.
How much can you recover?
A text will not win back every caller. Some will have already moved on and some were never serious. The realistic goal is to recover a share of the callers you would otherwise lose completely. Use our missed-call revenue calculator to test different recovery rates against your own numbers.
Details such as prices and carrier codes can change. Verify current information before you rely on it.