How to calculate the return on faster intake

Before paying for any intake system, estimate what it is worth to your firm. You need four numbers you probably already have.

The four numbers

• New inquiries per month, from all channels
• The share of inquiries you never reach or reach too late. Measure it from call logs and test inquiries.
• Your conversion rate from a reached inquiry to a paying client
• Average fee or commission per new client

The calculation

Monthly value at stake = inquiries x share missed or late x conversion rate x average fee.

For example, a firm with 200 inquiries, 25% missed or late, a 20% conversion rate, and a $4,000 average fee has 200 x 0.25 x 0.20 x $4,000 = $40,000 a month at stake. These numbers are only an illustration. Use your own.

You will not recover all of it. Estimate a realistic share, compare it with the cost of the system, and set a date to check the result.

Count the hours too

Add the staff hours saved on callbacks, retyping intake details, and scheduling, valued at what those hours cost the firm.

Measure after launch

Take a baseline before anything changes, then compare the same measures 60 and 90 days after launch. Without a baseline, any result is a guess.

Frequently asked questions

What if we do not know our missed inquiry rate?

Pull a week of call logs and send a few test inquiries at different times. That is usually enough for a first estimate.

Is the example figure typical?

No. It is an illustration of the math only. Your numbers will differ.

Sources

• Oldroyd, McElheran and Elkington, "The Short Life of Online Sales Leads," Harvard Business Review, March 2011↗