How Much Does an Answering Service Cost?
When most people look for an answering service, one of the first things they ask is, “How much does your answering service cost?” This is an understandable question because it takes an objective look at a quantifiable answer. It makes business sense to know how much an answering service will cost.
But is it the best question to ask? Let’s explore this a bit.
A Bargain at Less Than Three Dollars a Day
The cost of an answering service depends on how much you use it. If you use it a lot, the cost will be more than if you don’t use it that much. This means it’s hard to give specific answering service cost numbers without knowing how many calls to expect. However, let’s look at a common situation.
A typical small business might receive three calls on an average evening. This adds up to about 90 calls a month, less than 100. A typical call lasts less than a minute. That means that this small business could expect to use their answering service less than 100 minutes a month.
At America’s Telephone Answering Service, a professional phone answering provider, this small business would pay $79 a month for their answering service. That’s it. That’s the total answering service cost, less than three dollars a day. For less than a cup of coffee, you can have your phone answered whenever it rings outside of business hours. It’s a veritable bargain, one you can’t pass up.
An Answering Service Investment in Your Business’s Future
Now let’s look at another calculation. What is the value of a call? More specifically, what might a lost call cost?
If your failure to answer an urgent, after-hours call from a customer causes them to hang up in frustration and call your competitor, you just lost a customer. And this isn’t one sale that you lost, it’s the lifetime value of that customer—gone in an instant because you didn’t answer their phone call.
The lifetime value of a customer varies from one industry to another and one business to another, but let’s pick a small number. Let’s say the lifetime value of a customer is $100. I suspect that for your business it’s much higher. Maybe $1,000. How about 10,000? More? That’s a lot of business riding on rather or not their phone call gets answered, but it’s a real-life circumstance that happens every day.
And what if that after-hours phone call was a potential customer? Lose them and you lost their entire lifetime value, be it $100, $1,000, or $10,000.
But at even $100, saving one customer or obtaining one new customer will more than cover the cost of your answering service for a month. Now, what if you saved two customers? Or ten? Or more? The business that your answering service can save for you is truly astounding, many times over the relative insignificant amount of their monthly service.
The Cost of Not Having an Answering Service
Yet some small businesses lose sight of the extreme value of their answering service. They forget about all the customers that their answering service saves and all the new business that their answering service helps them capture. Instead, they look at their answering service cost with blinders on and see a way that they can shave a few dollars off their expenses.
This is a shortsighted move.
Cutting your answering service will cut your revenue—not just this month, but the next month and the next year, too, as reflected by the lifetime value of each customer.
Don’t put your customers and your business’s future at risk. Hire a professional telephone answering service to make sure your calls are answered whenever you’re not in the office.
If you want to realize the full lifetime value of every one of your customers, contact us today to discover how we can serve your existing customers and your potential customers too.
View a complete list of our answering service pricing here.