April 12, 2022
Missing customer calls is more than an inconvenience—it's a direct hit to your bottom line. When 85% of unanswered callers never try again (source), businesses face an average revenue loss of $26,000.
While in-house receptionists provide comprehensive administrative support, businesses ranging from trades to healthcare are exploring alternatives. The best solution depends on your needs, from call volume and budget to service complexity.
Unfortunately, there is no one-size-fits-all solution. The best choice depends on your unique needs, from call volume and customer expectations to service complexity and budget.
So, what's the best way to handle your incoming calls from an AI phone answering service, virtual receptionists, or dedicated in-house staff?
Unanswered calls cost businesses lost revenue and time.
Small businesses must choose between in-house staff, virtual receptionists, or AI answering services based on their call volume and customer service needs. Each option has distinct benefits and cost structures that affect small businesses' bottom line.
Starting at $35,000 annually, in-house staff provide comprehensive business support beyond phone duties that AI and virtual services can't match.
Think of them as remote staff focused solely on your calls. Monthly costs range from $200 to $2,000, depending on call volume. They excel at complex conversations but require management approval for script changes or updates.
Starting at $30-200 monthly, AI receptionists handle routine calls 24/7 without overtime costs. They're best for capturing appointments and basic FAQs, with immediate self-service updates available.
Many business owners focus solely on the base salary when budgeting for reception staff. Scott Williamson of R. Williamson & Associates explains the hidden financial impact: "When I tallied up our true reception costs, I was caught off guard. Beyond the base salary, we spent nearly $10,000 annually just covering leave entitlements and temporary staff. And that's before counting all the hours getting someone up to speed when staff leaves."
Here's what most businesses don't consider when calculating reception costs:
Australian staff entitlements mean paying $5,400 for eight weeks of unanswered calls:
Replacing a receptionist costs your business time and money.
The six-week replacement process adds up:
Business happens beyond 9-5. Your wage costs multiply quickly:
During these times, a standard $27 hourly rate jumps to $40-80. Most businesses end up choosing between expensive coverage or missed opportunities.
Ed Heinlein of Heinlein Supply learned this lesson the hard way. "We used to joke about the 'lunch hour rush' - you know, when everyone's trying to reach us while our receptionist is at lunch. We missed about 5-6 calls daily during breaks and lunch. That's a lot of business walking straight to our competitors."
Every coverage gap puts your business at risk. While your receptionist is on break, sick, or away, competitors with consistent coverage take those calls.
Virtual reception setup requires a 2-3 hour onboarding process to:
Making changes later requires management approval and staff training. Updates aren't instant. If you already have systems and documentation in place, it’s a breeze. Otherwise, plan on spending a lot of time getting things in order.
The initial setup takes 10 minutes to 2 hours, depending on the complexity.
The first week involves:
"People often ask me about the difference between virtual and AI receptionists in those first few days," says AI Answering Service founder John Walker. "Virtual receptionists bring that human touch immediately - they're naturally empathetic and great with unexpected situations. With AI, it's more about being efficient and getting the information out quickly."
Most virtual reception services assign you a manager who guides your setup. Getting started is straightforward if you already have documented procedures and call scripts. Without these, expect to spend much more time planning how calls should be handled.
Virtual services typically require a formal update request, which can take a few hours to several days. AI systems, however, let you modify responses instantly through a self-service portal.
"One of our clients, a local plumber, struggled to handle calls while on jobs," Walker shares. "Virtual receptionists seemed like overkill for his needs. Since switching to AI, he's more productive because he can focus on his work without worrying about missed calls. He checks the transcripts to see if it’s a good lead or a telemarketer."
Whichever system you choose, start with a trial period to see how each system handles your typical calls. Pay attention to response times and whether customers get the help they need.
Virtual receptionists bring that human element to every complex customer interaction," says Peter Wuensch, VP of Knape Associates. "They build real rapport, handle detailed product queries, and adapt to unpredictable situations. Combining them with our in-house team gives us a good balance - skilled phone support that scales up when we need it, plus that irreplaceable face-to-face presence in our office.
Law firms and medical practices benefit from their ability to manage sensitive information and show empathy. They adapt quickly to unique situations, but remember, longer calls mean higher per-minute charges.
AI handles routine tasks with consistent efficiency. Emergency plumbers report 40% more after-hours bookings because AI never sleeps or charges over time. The system manages multiple calls simultaneously, making it perfect for businesses with unpredictable call spikes. Callers know they’re talking to AI, so they get straight to the point, keeping conversations focused and your costs predictable.
Virtual services often start with attractive trial rates that increase significantly. Many businesses feel stuck after investing in setup and training.
Watch for:
AI services typically offer simpler contracts with predictable monthly costs. Since AI Answering services are so new, most don’t have hidden fees or tricky ways that industry standards have used to keep customers locked into more extended contracts or surprise costs, which means easier budgeting.
A caterer might handle 60 minutes of calls monthly, doubling during holidays. Monitor your patterns during trials. Virtual receptionists charge extra for these spikes. AI systems handle fluctuations without additional costs.
Consider your callers' preferences. Some industries need the human touch for complex inquiries. Others benefit from quick, efficient AI responses. Match the service to your customers' communication style and your business requirements.
Have you mapped out your typical customer journey? Think about when your clients most often need to reach you - not just during business hours, but those critical moments that could make or break a sale.
Are your phones busiest during morning commutes or late at night when families finally have time to make calls?
The answers reveal more than just timing. They show how your phone service shapes customer experience.
Would your elderly clients feel comfortable explaining complex medical symptoms to AI? Could emergency plumbing customers wait for a virtual receptionist to relay their flooding basement message?
Before making your choice, consider:
Try this exercise: List your three most common types of calls and three most challenging ones. This simple step often reveals which service aligns with your real needs.
The best choice keeps your business accessible while respecting your customers' preferences.
After all, a missed call isn't just about lost revenue - it's about lost trust in your business.
Bio:Sam Dageeg is the marketing director at Write Good Code, where he leads digital transformation strategies for companies worldwide. His work has appeared in Fox News, ABC, NBC and Fast Company, reaching millions of readers worldwide.
