NFIB

Does Your Toll-Free Number Pay for Itself?
01/ 23/ 2003

Many small businesses install a toll-free number without questioning whether the added cost will pay for itself in added sales. Since your company pays for all incoming calls on your toll-free line, it's important to determine--as precisely as possible--how much added revenue the line generates. Jeffrey Moses offers a precise way to track incoming toll-free calls and tally the sales generated.

To begin, there are certain business activities that require a toll-free number. These include all catalog sales, direct-mail campaigns and direct-response sales. Customers have become accustomed to using toll-free calling for these types of purchases. If you advertise a number that isn't toll-free, potential customers may decide not to call.

Similarly, there are types of business activities that do not require a toll-free number. These often include business-to-business sales. Business people usually do not base their purchases on whether a company provides a toll-free line, and offering one usually won't affect sales volume.

If you decide to install a toll-free line, all incoming calls should be tracked to determine how much revenue is generated from the toll-free calls. You could install a separate phone for the toll-free line, and keep records of how many calls come in, how many sales result from those calls and how much total revenue is generated.

Many small companies simply route their toll-free number to their regular phone line, and have no way of knowing which incoming calls are toll-free In this case, when advertising your toll-free line, always list an extension number. When customers ask for this extension, you can note that the call is coming in on the toll-free line.

Once you begin tracking, it's easy to calculate the actual dollar amount of new revenue generated from your toll-free line. When, after tracking for six months or a year, it becomes apparent that your toll-free number is or is not paying for itself, you can stop tracking incoming calls. It's advisable, however, to track for a month or so every year to see if trends change.

Some businesses choose to provide a toll-free line only for sales, while offering a non toll-free line for all technical support and customer assistance. When established customers call on your toll-free line with questions for your technical staff, your receptionists can simply inform the customers that they'll need to call another number to reach the appropriate person.

Though toll-free lines can be pricey, they do offer the following advantages:

1. They give you a "local" presence nationwide.

2. They give you an edge over competition, giving customers the feeling that you care about their convenience.

3. They make it seem as though your business is established and successful.

4. "Vanity" toll-free numbers offer brand recognition. When the digits in the number make up a specific name or word--such as the well-known 1-800-FLOWERS or 1-800-CALL-ATT--it can give you name recognition among customers. Industry analysts estimate that vanity numbers can generate up to 40 percent greater response than regular toll-free numbers.

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