What is your opportunity cost per inbound call?
In other words, how much profit is lost per mishandled call that doesn’t turn into a lead, then a customer, then a full relationship?
I’m going to show you some math that’s going to make you a little bit crazy as an executive of a bank.
Video: What Is Your Conversion Rate From Inquiry to Customer?
Let’s imagine for a second that you spend a million dollars per month on the payroll expenses for people who are somehow associated with calls that come in or support that function in any way.
You’ll want to allocate some share of your overall payroll. And let’s say that you have an additional $100,000 for that month invested in marketing expenses. So, that totals to a $1.1 million of expense that you need to now provide ROI from.
For easy math, let’s say you have a hundred inbound phone calls. Okay. When you take the $1,100,000 divided by those 100 calls, that gives you a cost per call of approximately $11,000.
Most banks average a 3.3 out of 10 on a true mystery shop designed to actually convert callers into customers. But let’s say your team is better. Let’s say that your team scores a 5.0 on average.
The lost opportunity for that month would be an easy $550,000, or a lost potential profit of $6,600,000 per year.
And the likelihood is they’re not even getting half of them. And yet, doing the right things can help you convert 90% of them into customers, paying premium pricing, and bringing their entire relationship.
So, we look at numbers as bankers and think we’re good at numbers, but what could be a more important number than knowing your conversion rate on inbound calls into customers with the entire relationship brought over without conceding rate?
If you want to knock your efficiency ratio down by 10 points, that’s the way to do it. If you want to make sure that you don’t have to lay off people during challenging times or cut their salaries or other investments in your future, picking up this low-hanging fruit can solve many of those problems.
One of the biggest holes you have in your profitability is seeping out fast. Fixing that is a great place to start. During difficult times, this is not the time to move your phones over to being handled by voicemail. Humans need to answer those phones, and those humans better be good at what they do.
What’s your insurance policy to make sure that you’re not destroying your profitability potential by not managing your first impression?
Get your people on the path to owning the relationship from the first moment they pick up the phone. Register now for the No More Order Taking Masterclass on October 20, 2022 at 11:00 a.m. CDT.
To your success,