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Here is a simple way to calculate the value of an incoming phone lead for your business.

[CP_CALCULATED_FIELDS id=”6″]This should be an eye opener if you aren’t handling incoming calls with the utmost urgency.  Every call that you don’t handle properly can cost you literally thousands of dollars.

These numbers don’t even take into consideration lifetime customer value which can be considerably more since a good percentage of customers return for future service which makes even one lead worth much, much more.

Let’s say your average customer value is $1,500.  You convert from phone call to appointment about 75% of the time.  To simplify out of every 10 phone calls of people interested in your service 7 – 8 of them request an estimate or appointment.  So we calculate that as $1,500 x .75 = $1,125.

From estimates/appointments you convert about 9 out of 10 of them into a paying client.  So $1,125 x .9 = $1,012.50.  This means that one qualified lead is worth about $1,012.50 in gross revenue.

Now if we multipy by 5 leads per month, that’s an additional $5,062.50 in revenue per month.

10 leads per month is an addition $10,125 in new monthly revenue.

15 leads per month is $15,187.50 in new gross revenue.

On a yearly basis with 10 qualified leads per month that is $121,500 or more per year in new gross revenue.

Of course these numbers are all estimates and every business will vary but this is an easy way to calculate gross revenue and the value of an incoming phone call.