The Cost of Missed Sales Calls

So, What if We Miss a Few Sales Calls?

One of the most critical aspects of our self-storage industry is understanding the cost of missed sales calls. Research shows that 5-50% of sales calls go to the first company that answers. If that’s true, we must ensure we answer the phone every time it rings.

When considering the actual cost of missing a call, it’s essential to recognize that it goes beyond just the direct loss of a sale. Negative experiences tend to spread; people who have difficulty reaching a salesperson or who must call multiple times often share their frustrations with others. Unfortunately, individuals are more likely to discuss their negative experiences than positive ones, which amplifies the impact of missed calls.

You Spend a Lot on Your Website – Every Missed Sales Call Matters!

There is another significant cost associated with missed calls. For example, investing in a high-quality website can be expensive, especially if you want it to have real value and allow customers to rent online. These improvements can lead to rising advertising costs. When potential customers call because they find the website unclear or confusing, it indicates that you may be missing out on opportunities. If they can’t find the information they need online, they will likely call instead.  So, a great website must factor into your marketing dollars when calculating how much it costs to get the phone to ring.

Why Are You Missing Sales Calls?

When you ask why your staff is missing calls, some may respond, “We’re too busy to answer.” If that’s the case, my first suggestion would be to hire more staff. However, effective managers prioritize their time and understand that it’s crucial to focus on essential tasks during downtime. Ultimately, we should prioritize new customers who walk through the door or call on the phone. You should never be too busy to answer calls.

Another issue we find with missed calls is employees not recognizing incoming numbers. I noticed in the past that sometimes my storage manager team would scan the caller ID to see if they recognized the number before picking it up. I firmly believe that whenever they hear the phone ring, they should think, “This could be new business!” The ring should be seen as a positive opportunity, not a nuisance. We don’t want a situation where someone decides not to answer just because they don’t recognize the caller. That’s not the right mindset for our business!  Many people don’t answer calls from numbers they don’t recognize, especially if the area code doesn’t match their local area. This is a problem because the area code can vary with so many people using cell phones. For instance, I live in Arizona but have a northern California area code. It’s essential to be aware of this when considering prospective callers.

What About Missing Calls During Required Breaks and Time-Off?

What if customers call during lunch breaks? When customers call during these off-hours, it sometimes leads to the excuse of, “Oh, they called during lunch, and I haven’t called them back yet.” When you return from lunch, your priority should be to check for any missed calls and determine how to respond. It’s essential to call them back promptly and engage with the customer. They may never reach out again if they are dissatisfied and feel ignored. So, it’s crucial not to wait several hours to return their call, which can significantly impact customer satisfaction.

Remote operation stores can benefit from having call centers with agents available to answer calls during closed hours. However, individuals who are skilled in property sales and genuinely care about selling will likely outperform the average call center salesperson.

Those Sales Calls Come from Lots of Sources

Other cost factors for me over the years have included the use of billboards and numerous marketing strategies to attract customers to our store. One of my tactics is to provide a free moving truck through On the Move. We have appealing graphics on the truck to catch people’s attention. When customers find us, they often mention the free moving truck as the reason for their visit. This shows just how effective that strategy can drive business to us.

Let’s Break Down the Cost of a Missed Sales Call

When considering the average size of a storage space, let’s say it’s 10×10 feet, we typically find that the average length of stay for properties is over six months. Generally, older properties tend to have more extended tenancy periods. I’ve seen first-hand that some tenants have been using the same storage unit for as long as 17 years, which skews the average at that property. However, for large public storage companies, we estimate that people store their belongings for around 6.6 months on average.

We considered the example of 10×10 storage units, for which the average price in the United States is around $160. However, some locations can charge significantly more, particularly on the East and West Coasts.  If we multiply that average of $160 by 6.6 months—the typical length of a rental—we find that the potential revenue we’re missing out on is $1,056.

This figure shows the cost of not answering calls, representing income we’re essentially throwing away. Everything we’ve invested, especially in advertising and other efforts, isn’t even factored into this amount. Simply put, if we rented out those units, we would be making a considerable profit. Every missed call is costly, highlighting the importance of answering them.

What Can We Do?

When we evaluate staff through our mystery shopping services, we often find ourselves looking for specific individuals to assess. However, sometimes these employees won’t answer the phone.  Our clients have requested that we document our call attempts and the reasons behind unanswered calls. This means we track the date and time of each attempt and note what happens—whether there’s no answer, it goes to the call center, or something else.

It’s interesting to observe that sometimes we may try ten times to reach a store, only for no one to answer. If that is indeed the case, it highlights a problem, and over the years, we have helped numerous clients fix this glaring issue. It raises the question: why aren’t they answering? Suppose the store knows its owners use a mystery shopping company to evaluate their sales techniques. In that case, they might let calls go to voicemail, thinking they can return them later, avoiding any potential phone shopper. This honestly comes across as manipulative and puzzling.

Don’t Let Feedback Discourage You

As someone who appreciates constructive feedback (I’m a singer, after all), I know it’s essential for improvement. If I never took feedback, I wouldn’t get any better—it’s simply impossible. When I, as a property manager or owner of storage facilities, notice that there have been multiple (let’s say eight) attempts at my store without anyone answering, I would be compelled to pick up the phone myself or, if possible, drive there to find out what is happening.

There should never be a situation where a manager lets the phone ring without answering. If potential customers are left to leave a message, they might move on to other options, and those callbacks may end up getting ignored. This behavior suggests that the customer isn’t valued and, by extension, implies that the manager doesn’t consider them essential either. Do not underestimate the importance of understanding the cost of missing sales calls at your storage property.

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