Business 101: How much money do you lose not answering the phone?

By
Managing Real Estate Broker with Rickert Property Management

Its more and more common these days with all the electronic gadgets that companies and small business people have, like Realtors, that they now rely on technology instead of people to answer their telephones. Why? Ask them and they will tell you that it works better, they can be found 24/7, it is a great lead capturing technique, etc. But the real reason: They don't want to spend the money hiring someone!

But do you really save money or is it cutting off your nose to spite your face? Let me tell you about my friend the roofing company owner. I hired him to do a roof on a bank owned property because his prices are good, and he does good work. So I called on Monday to get an update on the job. I got an answering machine, with the standard press 1, press 2, etc. on it. So none of the choices I wanted were listed so I held, and then it clicked, beeped, more silence, then ringing again while the machine must have tried to find him. About a minute later (seems long when you are on hold) another voicemail came on and I left a message. On Wednesday they called me back, saying they were sorry but they found my message on their machine. Wednesday.

So here is the Business 101 question: Had I been a customer seeking a new roof, would I have left a message or just went to the next company I found on the internet or phone book? In the off chance that I would leave a message, would I have still needed a roof estimate 2 days later or would I have found a roofer? So is the $10 an hour they pay the receptionist that they saved better than the new roof they may have installed? 

Bottom line: How much money does it cost you to not have your telephone answered, no matter what your business is, if you are selling something or providing a service. If you have a listing, do you think they will leave a message or call the next person on the list? If you have a vacant rental ti fill will they leave a message or if you call back 2 days later will they say they found something?

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Tags:
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Rainmaker
451,192
Allison Stewart
St. Cloud Fl Realtor, Osceola County Real Estate 407-616-9904
St.Cloud Homes

Dennis

I understand your frustration. Untold amounts of business are lost on a daily basis.  In every trade, profession, and certainly Real Estate is no exception to that rule. Customer service has given way to laziness, ineneptitude, and genral malais in the workplace.   The good news is- for those people who really put in 100% effort, they will get the business the others are missing!  It works for us all the time.  

 

December 17, 2011 06:47 AM
Rainmaker
572,316
Phil Leng
Phil Leng Team - Residential Real Estate Experts &
Keller Williams Eastside Market Center

Hi Dennis,

I have to admit, I have caved in to technology.

When my phone was preventing me from getting work done, I sent my number to our phone system. During office hours it is answered live. After hours you get the annoying "press 1" etc.

Phil

December 17, 2011 06:49 AM
Rainmaker
80,185
Dennis Swartz
ABR, CRB, CRS, GRI...experience counts!
Rickert Property Management

Phil-any idea how many people just hang up? I understand after hours but many companies use that during regular hours.

December 17, 2011 08:30 AM
Rainmaker
1,881,553
Roy Kelley
Roy and Dolores Kelley Photographs
Retired Real Estate Broker, Maryland Blogger

 

Merry Christmas!  Happy Hanukkah!

Your friends in Maryland, Roy and Dolores Kelley

 
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Roy and Dolores Kelley Photographs

 

December 25, 2011 12:40 PM
Ambassador
1,657,171
Margaret Rome, Baltimore Maryland
Sell Your Home With Margaret Rome
Broker/ Owner HomeRome Realty-Author "Real Estate the Rome Way" 410-530-2400
I am one who answers my phone. Many times the caller is surprised and thought they would get a machine. Many good clients have started with that call.
December 25, 2011 02:02 PM
Ambassador
2,365,148
Patricia Kennedy
For Your Home in the Capital
Evers & Company Real Estate, Inc.

Hey Dennis! 

I included this post in Last Week's Favorites.  Have a Merry Christmas!

December 25, 2011 08:42 PM
Rainmaker
212,918
Tom Bailey
Crystal Coast Realty & Home Services, LLC

I managed my families business for twenty years without automated answering. I refused many pleas from the staff to use a machine. My answer was always " not just No, but Hell No".

December 25, 2011 08:54 PM
Rainmaker
1,563,675
Debbie Gartner
The Flooring Girl - Westchester hardwood flooring
Floor Coverings International Westchester NY & Stamford CT

I agree with you.  A year and half ago I tried this.  I forwarded my phone to a virtual assistant and figured out the extra cost for her to answer the calls/cost of the phone and how much biz I needed to get to break even.  Within a week, I had more appts and it more than paid for itself, so I knew it was the right decision.

I think the issue for many is going from 0 to 40 hrs...and the truth is, there are more creative ways to do this.  Now, she is working w/ me 45 hrs a week.

December 26, 2011 06:01 AM
Rainmaker
80,185
Dennis Swartz
ABR, CRB, CRS, GRI...experience counts!
Rickert Property Management

Tom-its okay for afterhours but not during the business day!

Debbie-Good idea! How much does that cost?

December 26, 2011 06:59 AM
Rainmaker
807,614
Lyn Sims
Schaumburg Homes
RE/MAX Suburban - Schaumburg IL Real Estate - Northwest Suburbs of Chicago

I have to agree but then slightly disagree. Our office has a live person the entire time it is open vs our other offices that gets answered in voice mail. We felt years ago that it was just rude & changed over quickly. I don't know if it helped our business but it just 'feels' better to us. More consumer orientated. But, if I am not in the office, then they have to leave a message. I don't feel that clients need to get a hold of me 24/7. Clients are just too rude. I have people that stay up ALL NIGHT on my website which pages me so there are people figuring they can talk to me at 3am?

I know that whenever I call a contractor it's just a job to get them to call back. All these people 'say' they want the business but then never call to get it.

December 26, 2011 11:00 AM
Ambassador
1,227,260
Erica Ramus
MRE, Schuylkill County PA Real Estate
Erica Ramus - Ramus Realty Group - Pottsville, PA

I have an autoattendant at the office for the main reason that your call ALWAYS go to the agent you are calling. No middle man. The phone rings the agent's desk phone (if they have one) and also their cell phone at the SAME TIME. This morning I was at home and my cell rang and it was a seller calling to list their house. They were surprised I was "at the office". I was at home. It works for my office!

December 26, 2011 12:04 PM
Rainmaker
705,131
Winston Heverly
GRI, ABR, SFR, CDPE, CIAS, PA
Winston Realty, Inc.

The only reason to have a cell phone is to answer it. How many don't in this business way to many. There is absolutely no reason to have a voice message if you are a professional Realtor. I challenge anyone to call me (561) 247-7376 (24/7), you will never get a message that should be the motto.

December 26, 2011 06:46 PM
Rainmaker
848,613
Lottie Kendall
Serving San Mateo County and San Francisco
Today | Sotheby's International Realty

Thought provoking post, Dennis. All my calls get sent to my cell phone. I turn it off at night, when in meetings, or with clients. But--I ALWAYS return calls the same day (or in the morning if they come in at night.)

December 27, 2011 12:03 PM
Rainmaker
80,185
Dennis Swartz
ABR, CRB, CRS, GRI...experience counts!
Rickert Property Management

Lyn-its incredible how many times I have given business to the second or third contractor cause my first choices won't answer or call me back for days.

Lottie-Thanks and I do the same, but I wonder how many won't leave a message. Almost better to let my secretary answer.

 

Winston-thought about taking you up on that offer, right around 4 AM! :)

December 27, 2011 09:11 PM
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Rainmaker
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Dennis Swartz

ABR, CRB, CRS, GRI...experience counts!
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