Short answer
Multiply your missed calls each month by the share of those callers who would have booked, then by what one new client is worth. For many Metro Vancouver service businesses, that number is thousands of dollars a month.Most owners know they miss calls. Very few know what those missed calls cost. It's easy to work out, and the number is usually bigger than people expect.
The formula
You need three numbers:
- Missed calls a month. Your phone system or carrier can usually show these. If not, count them for one week and multiply by four.
- The share that would have booked. Be careful here. Not every missed call is a new client. Some are spam, some are existing clients, some would never have hired you.
- What one new client is worth. Use your average first job, not your best one.
Then: missed calls × share that would book × value of one client = what you lose each month.
Why callers don't wait
When someone needs a lawyer, an immigration consultant or a venue, they usually have a list. If you don't pick up, the next name on the list does. In the Lead Connect survey, 78% of customers went with the business that answered first.
So a missed call isn't a delay. Most of the time it's a client who went somewhere else.
Three examples
These are made-up examples with careful guesses. Swap in your own numbers.
A small law firm in Surrey. It misses about 40 calls a month, mostly evenings and Saturdays. It guesses 10% would have become clients. A typical retainer is $2k to $10k or more, so it uses the low end, $2,000.
40 × 10% × $2,000 = $8,000 a month.
An immigration consultant in Vancouver. About 30 missed calls a month, many at night from overseas. The consultant guesses 15% would have booked a paid consult. A typical first engagement is $1.5k to $5k, so they use $1,500.
30 × 15% × $1,500 = about $6,750 a month.
A banquet hall in Newton. About 25 missed inquiries a month, almost all during events. The manager guesses just 4% would have booked. A typical event is $8k to $30k, so they use $8,000.
25 × 4% × $8,000 = $8,000 a month. That's one lost wedding.
Even with cautious guesses, all three lose more in a month than a year of an answering plan costs.
The costs you don't count
The formula only counts the first job. It leaves out the client who would have come back, referred their cousin, or left a review. It also leaves out the time you spend calling back people who've already moved on. That part is hard to measure, so don't. Just know the real number is higher.
What to do about it
Start by finding out when you miss calls. For most businesses it's the same few windows: lunch, after 5, weekends, and whenever you're already on the phone.
Then cover those windows. Some owners hire, some use an answering service, and some forward missed calls to an AI receptionist like the one we describe here. If you want to see your own numbers, the ROI calculator on our home page does this math with sliders. Pages for law firms, immigration consultants and banquet halls show what that looks like day to day.
Quick questions
How do I find out how many calls I miss?
Check the call log in your phone system or carrier account. If it doesn't show missed calls, count them by hand for one week and multiply by four.
Should I count every missed call as a lost client?
No. Some are spam or existing clients, so use a careful share, such as 5% to 15%, of the calls that could have been new business.
Is voicemail enough?
For most service businesses, no. Many callers hang up without leaving a message and call the next business on their list.