Marketers, traditionally, haven’t really cared much about phone close rates.
They simply care about driving clicks and calls. Their philosophy was simple: we drive web traffic or calls, you handle the web traffic or calls.
Well, those days are over.
Marketers now have to care about what happens on the phone when someone calls a business. They just have to. Companies care about revenue. They care about the entire lead cycle. They care about the whole process, not just about driving a high number of calls. That means marketers have to care too.
One of the things Convirza does is track phone close rates. In other words, we actually track the percentage of phone calls that result in a sale, appointment, quote, or whatever the ‘goal’ of the call was. We track whatever qualifies as a ‘close.’
Close rates vary dependent on industry.
In the retail automotive space, for example, close rates hover around 20%. In other words, about 20% of the people that call a tire dealer, an auto glass shop, or an auto repair shop end up coming in and buying.
In the hospitality industry the number is a bit higher, just about 25%. That means in 25% of the calls, someone booked a room.
Other industries have varying close rates. You get the idea.
Well, here are couple of interesting things we’re learning as we score calls and track close rates.
One client started scoring calls about 7 months ago. This means that they were using Convirza to track specific events on the call. For example: Did the employee use the caller’s name? Did the employee ask directly for an appointment? Did the employee persist in the face of an objection?
We’re talking about sales training-esque stuff here.
When this company started scoring their calls, their close rates were hovering around 17%. So, 83% of the time callers didn’t end up being customers.
They had a bit of room for improvement. 😉
Now, 4 months and thousands of scored calls later, their close rates are 73%. Their revenue is DOUBLE the industry average on a per store basis.
How did this happen?
Well, they implemented an internal call reviewing and training program. They play call recordings for employees. Employees have access to call recordings within Convirza. Bonuses, employee discipline and even vacation days are dependent on call scores.
Not surprisingly, as call scores went up, so to did close rates.
When another client started scoring calls, their average call score was around 54%. Their close rate was 21%.
3 months later their average call score had improved to 69% and their average close rate had climbed to 30%. That’s a close rate increase of around 40%.
That may not sound like a dramatic increase, but if you close 40% more calls last month than you did last month, guest what will also increase: revenue.
Point 1 – These companies wouldn’t have had the ability to improve without data…call analytics data via call scoring.
Point 2 – If you don’t know your close rate, you can’t improve. You need to know your close rate.