ROAS is the marketer’s measure of success – but what happens when your client is practicing sales prevention?
I was chatting with a colleague of mine, Phil, about ad management platforms. He expressed his frustration with DSP providers being particularly difficult to get a hold of and shared an experience he had while managing sales at a regional TV station several years ago. Based on his track record of excellence, he had been brought in to “right the ship” of a station that was struggling with revenue growth. Once on board, he took them from $9M to $23M in annual ad revenue in less than two years.
The face-palm moment:
When asked by his executive management team to share the secret of his success, he responded “we answered the phone.” It seemed that advertisers were trying to do business with the station, but the sales team had not been answering the calls. By simply tweaking the team to actually pick up the phone, Phil’s team was able to grow ad revenue by 155% in less than 2 years!
Missed Calls.
One of the biggest marketing bleeds known to man.
Other marketing and lead handling faux pas include not responding to emails and texts, lack of attribution (or inability to track results,) throwing good money after bad (maybe it will work if we double down!) and not monitoring results or adjusting for improvement.
Back to missed calls.
Did you know that the typical small business misses nearly one third of all inbound calls? While businesses are battling with their marketing firms to increase the productivity of their marketing spend and threatening to spend it elsewhere, marketing firms are befuddled by the SMB’s inability to make the most of every inbound opportunity.
The leaky bucket of missed calls is a pain point caused by simple unavailability, staffing issues, inability to respond 24/7 and being away on weekends and holidays.
The Law of 5 Minutes
The Law of 5 Minutes warns that the window of opportunity is shrinking. A business has a 75% higher chance of converting a caller into a customer if they respond within 5 minutes.
5 minutes.
That’s not a long time but in today’s get-it-on-demand-NOW Uber consumerism, 5 minutes can seem like an eternity to a caller who wants to buy something or have their problem solved. It’s also very likely why a growing number of us don’t actually like placing a call when we have other communication options instead, like SMS text and chat.
The Law of 30%
The Law of 30% is simple. It says, by not answering 30% of your inbound calls, you will achieve 30% less ROAS.
Let’s do the math.
If my small business spends $3,000 a month to drive 30 inbound calls at a cost of $100 per call, and if I have a 20% close rate resulting in an average sale of $1,500 per customer, I would close 6 sales for a total of $9,000 in revenue and have a ROAS of 300%.
But wait, that assumes I am super-SMB and responded to every one of those calls. But I’m not super-SMB, I am the typical SMB and I only answered 70% of those calls. My 6 sales just became 4 and my ROAS dropped to 200% on a revenue of $6,000. I spent the marketing dollars to drive those calls, but I did not make sure I had the resources to handle them. My bad.
By not missing 30% of my calls, I stand to increase my ROAS by, wait for this, 30%. See how that math works? That’s the Law of 30%!
The Law of ROAS
This law states that a marketer who can prove that their efforts result in maximum revenue for their client shall retain that client.
As marketers finalize their 2022 planning, a key ingredient for them to keep in mind is how they can help their clients solve the easily solvable problem of not taking advantage of every precious call. Knowing that customer communication expectations are increasingly demanding, leveraging today’s technologies is a must.
One such solution is Agentz’s missed call handling. By responding via SMS acknowledgement to each missed caller and alerting the SMB real-time to the missed call, the Agentz digital receptionist enables a fast, seamless conversation initiated via phone but transferred to text at the click of a link. The SMB can respond instantly from their mobile device no matter where they are. The customer is thrilled with the responsiveness and the SMB has a 75% increased chance to close a sale.
The Law of 5 Minutes is adhered to and the Law of 30% is proven once again.
As for the marketer, being able to show your clients that their marketing spend is in great hands with you accommodates the Law of ROAS. Win-win.
How Agentz Helps Marketers Adhere to the Laws of 5 Minutes, 30% and ROAS
To learn more about how the no-code Agentz digital receptionist helps marketers help their clients capture more customers and never miss a lead again, check us out at Partnering with Agentz.
Grow your revenue while your client grows theirs. And look good doing it.
Free Trial for Small Businesses
If you’re a small business, take advantage of our 30-day free trial of the Agentz no-code digital receptionist and start impacting your revenue today.
