Missed calls cost: estimate lost revenue fast

Missed calls cost more than most businesses think — because they compound. A missed call isn't just a "phone issue". It's often a missed lead you already paid to acquire (Google Ads, SEO, referrals) that disappears before you even get a chance to follow up.

This article gives you a simple, practical way to estimate lost revenue from missed calls using five inputs. Use it to build a conservative range, prioritise fixes, and justify investing in better call handling (including after-hours coverage).

TL;DR

• Missed calls are revenue leakage. You can estimate the size with five inputs.
• You do not need perfect data. You need a reasonable range and a consistent method.
• The biggest drivers are your lead-to-book rate and how fast you follow up.
• Start with after-hours first. Then fix peak hours. Then automate booking.
• If the number surprises you, that is the point. It helps justify investment and focus.

A short scenario: three missed calls on a Tuesday

It is 4:30pm on a Tuesday. The phone rings while your team is busy. Three calls are missed.

Call one is a new patient enquiry. They want an appointment this week. They try another clinic and book online.

Call two is a gym trial enquiry. They want to come tomorrow. They call the next gym on Google and get an answer.

Call three is a trade job. They have a problem that needs sorting. They go with the first person who picks up.

None of these callers leave a voicemail. By the time you return calls the next day, the moment has passed.

That is how a small problem turns into a quiet habit.

The model: five inputs you already have (or can estimate)

This model is intentionally simple. Use your own numbers. Update them as you learn.

Input 1: Missed calls

Count missed calls for a typical week or month. Use phone logs, your VoIP dashboard, or call tracking.

Input 2: Answer rate

This is the percentage of phone enquiries you answer live.

If you do not track missed calls cleanly, you can estimate them using answer rate:

Estimated missed calls = total phone enquiries × (1 − answer rate)

If you already know missed calls, treat answer rate as a sense check.

Input 3: Lead-to-book rate

Of the calls you answer live, what percentage becomes a booking or a clear next step?

If you do not know, start by sampling 20–50 calls and tagging outcomes.

Input 4: Average value

Average revenue of the first booking or first job. Use a conservative figure.

Input 5: Repeat rate (lifetime value multiplier)

Some businesses are one-and-done. Others have repeat bookings for years.

The simplest way to include this is a multiplier:

• 1.0 = mostly one-off
• 1.5 = some repeat
• 3.0 = strong repeat and referrals

Use what fits your business. If unsure, start low.

The core calculation

Estimated lost revenue (per period) = missed calls × lead-to-book rate × average value × LTV multiplier

This assumes missed calls are not recovered. If you call back fast and consistently, your true loss is lower. If you call back late or not at all, it is close to reality.

Simple calculator table (inputs + example values)

Use this table as a worksheet. Replace the example numbers with your own.

Three scenarios (use ranges, not “benchmarks”)

These are examples only. They are not industry benchmarks. They are here to show how the model behaves.

Scenario results (monthly)

How the numbers were calculated (example):

• Realistic: 60 × 0.35 × 250 × 1.5 = 7,875

A quick sanity check using answer rate

Answer rate helps you check whether your missed call count matches your call volume.

Example: If you missed 60 calls and your answer rate is 75%, then total phone enquiries are roughly:

60 ÷ (1 − 0.75) = 240 enquiries per month.

This matters because small improvements in answer rate can create a large change in missed calls.

What moves the number most (sensitivity)

Two levers dominate.

1) Booking conversion (lead-to-book rate)

If you improve what happens when someone reaches you, the value compounds fast.

This includes:

• better scripts
• clearer next steps
• fewer transfers
• smoother booking

If your lead-to-book rate increases, the same call volume produces more bookings. Your cost per booking drops without spending more on marketing.

2) Speed-to-contact (how quickly you follow up missed calls)

Missed-call recovery is perishable.

If you call back quickly, you win some back. If you call back late, most have already moved on.

Even without fancy tools, you can improve speed with:

• instant SMS acknowledgement after a missed call
• a dedicated callback block in the diary
• one person accountable for follow-up

What to do next (prioritised)

You want the highest ROI fixes first. Do not boil the ocean.

1) Fix after-hours first

After-hours is the cleanest problem. It is a defined window. The caller intent is often strong.

Minimum viable:

• answer the top FAQs
• capture name, number, reason
• confirm the next step
• log it for the team

If you want a ready-to-use flow, start here: After-hours call handling for Australian SMEs.

2) Fix peak hours second

Peak hours create the most misses because staff are busy. Focus on load shedding:

• route common FAQs away from staff
• offer booking links by SMS
• add a callback option with a promised window

3) Add booking automation third

Once your call flow is clear, automation becomes safer and more valuable.

Start with simple appointment capture and confirmations. Expand slowly. (For channel design, see Phone bookings vs online bookings for service firms.)

Practical checklist

• Pull missed calls for the last 2–4 weeks
• Estimate your lead-to-book rate from a small call sample
• Choose a conservative average value
• Pick an LTV multiplier that matches your repeat behaviour
• Run conservative, realistic, aggressive scenarios
• Identify where misses happen (after-hours vs peak hours)
• Set a speed-to-contact rule for callbacks
• Assign ownership for follow-up and tracking

A note on privacy (Australia)

If you introduce call recording, transcripts, or automated SMS follow-ups, make sure your approach aligns with your obligations under the Privacy Act 1988 and your own customer expectations. Keep retention practical, keep access controlled, and be clear with customers about what happens next.

You can review Valory's privacy approach on our Privacy Policy.

CTA: free call leakage audit

If you want, we can do a free call leakage audit. We will map your top call reasons, where calls are being missed, and what a first-pass fix looks like. You will get a simple plan and a clear estimate range you can use to justify action.

Valory is a service, not software: we build, deploy, and manage your call handling so you get results without the headache.

Book a walkthrough or browse more guides in our articles library.

FAQ

How many missed calls is normal?

There is no single normal. It depends on call volume, staffing, and how many calls arrive during consults, classes, or jobs. The useful question is: what is acceptable for your revenue goals?

Does voicemail work?

Sometimes, but it is unreliable. Many callers do not leave messages. Voicemail also does not answer the questions that help someone commit. Treat it as a fallback, not a system.

How do I track missed calls properly?

Use your phone system logs if you have them. If not, start with a manual log for two weeks. Track total calls, answered calls, missed calls, and outcomes for a small sample of answered calls.

What answer rate should I aim for?

Aim for improvement, not perfection. Start by separating after-hours from business hours. Then set a realistic target for peak times. The goal is fewer misses and faster follow-up.

What if I call people back the next day?

You will recover some, but you will lose many. The longer the delay, the more likely they contact someone else. Put a short callback window in place and measure the difference.

How do I estimate lifetime value without overcomplicating it?

Use a multiplier. Start at 1.0 if unsure. Increase it only if you know customers return, buy packages, or stay for months. You can refine later.

Is fixing missed calls usually higher ROI than running more ads?

Often, yes, because it improves conversion on leads you already paid for. Use the model in this article with your own numbers to decide.