Marchex Automotive Study Reveals the Cost of Saying “No” to Customers Over the Phone
June 14 2018 - 9:00AM
Business Wire
Marchex (NASDAQ: MCHX), a leading provider of call analytics
that drive, measure, and convert callers into customers, today
released findings from a new study based on more than 1.8 million
calls placed by consumers to nearly 5,000 stores of auto service
providers across the country. The data reveals the significant
financial impact of saying “no” to customers.
Using the Marchex script tracking tool, which helps companies
understand what transpires on a call between agents and customers,
the Marchex Institute measured 50 phrases and variations that
implied a negative response to customer questions and how
frequently those phrases were communicated. For example, if a store
representative said a part was “out of stock” or that a store
location had “no appointments,” customers typically reacted
negatively. Key findings include:
- As an industry, auto service
providers are losing $110 million per year by saying “no” to their
customers. On average, the analyzed auto service stores lost
nearly $23,000 in annual revenue per location just by saying “no.”
For an auto service provider with over 100 locations, that means an
average of $2.3 million annually.
- Agents say “no” nearly six percent
of the time. In fact, some say no to as many as one out of
every ten customers. The good news is brands say “yes” most of the
time, and while six percent may seem small, shops are losing
business most often because they aren’t staffing or stocking
optimally.
- Agents tend to say “no” more often
on the weekends. Agents say they don’t have appointments
available on weekends 17 percent more often than during the week,
and they say they are closed on weekends 24 percent more often than
on weekdays. This may be attributed to the fact that auto service
brands tend to lighten staffing and shorten hours on the weekends,
therefore leaving them unable to meet customer demand on Saturday
and Sunday.
- Agents say “no” more often as the
week progresses. During weekdays, agents tend to say “no” on an
average of 6 percent of calls. That number rises to more than six
percent on the weekends, resulting from fewer staff and the
inability to order parts from manufacturers over the weekend.
- Agents say “no” more often
throughout the day. One reason for this is that inventory for
requested parts and accessories decreases as sales are made
throughout the day. In addition, businesses tend to staff stores
more lightly in the evening, resulting in less appointment
availability and saying “no” to customers more often.
“These types of insights are critical to identifying problem
areas across a business and can be the first step toward a
solution,” said Matt Muilenburg, SVP and Head of Automotive at
Marchex. “Companies need to take a closer look at why they’re
saying ‘no’ to their customers, consider the revenue loss that
results from that, and determine what steps they can take to say
‘yes’ more often.”
Building off these insights, there are a few ways service
centers and their frontline agents can improve customer
engagement:
- Avoid negative phrases. Marchex
data from a previous study shows agents with lower sales rates say
“no” twice as often as top performing agents. Avoiding common
negative phrases, such as “No, I don’t think I can” or “No, that’s
not right,” can help.
- Increase weekend hours and
staffing. Increasing weekend hours and staffing results in
additional appointment availability and will enable brands to say
“yes” to their customers more often.
- Stock up on parts. Having the
right inventory on hand decreases the number of times a business
says “no” to a customer as the day progresses.
Visit the Marchex blog to learn more about the Marchex Institute
“Cost of Saying No” study.
About Marchex
Marchex understands that the best customers are those who call
your company - they convert faster, buy more, and churn less.
Marchex provides solutions that help companies drive more calls,
understand what happens on those calls, and convert more of those
callers into customers. Our actionable intelligence strengthens the
connection between companies and their customers, bridging the
physical and digital world, to help brands maximize their marketing
investments and operating efficiencies to acquire the best
customers.
Please visit the Marchex blog or @marchex on Twitter
(Twitter.com/Marchex), where Marchex discloses material information
from time to time about the company, its financial information, and
its business.
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version on businesswire.com: https://www.businesswire.com/news/home/20180614005058/en/
Marchex, Inc.Investor RelationsTrevor Caldwell,
206-331-3600ir@marchex.comorMedia Inquiries:EdelmanJessie
DiMariano, 206-268-2289jessie.dimariano@edelman.com
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