How Much It’s Costing Your Business When Customers No-Show

How Much It’s Costing Your Business When Customers No-Show

Businesses and services in various industries depend on a reliable customer base to maintain operating efficiency. For this reason, time is money in the business world. When a customer, patient, or client fails to show up for an appointment, the result is lost revenue for a business or organisation. 

At touchSMS, we understand the value of an engaged and committed client pool. As providers of interactive online SMS systems, our team at touchSMS helps connect businesses with their customers to streamline appointments, reservations, notifications, and so much more. 

In this blog, we talk about how no-show appointments could be costing your business. We also suggest ways to turn the tide and increase your business’s efficiency, revenue, and customer satisfaction. 

Keep browsing our blog to learn more about SMS and multi-industry solutions offered here at touchSMS. If you’re ready to start exploring SMS solutions for your business, use our convenient online form to connect directly with one of our experts today. 

No-Shows and Same-Day Cancellations

So, what are no-show appointments? In general, ‘no-show’ refers to clients who fail to arrive at or beyond their scheduled appointment time. In most cases, no-show appointments do not call, email, or text ahead to notify a business of their inability to meet at the scheduled time. 

For some businesses, no-show policies include patients or clients who cancel appointments less than 24 hours before their scheduled times. This inclusion accounts for the difficulty of scheduling replacement clients on such short notice. 

Businesses Commonly Affected by No-Shows

Because many businesses depend on scheduled appointments as a primary form of customer interaction and sales conversion, no-show appointments impact multiple industries. 

Some of the businesses and organisations most commonly afflicted with no-show appointments include:

      •         Medical practices
      •         Dental offices
      •         Counselling clinics
      •         Physical therapy practices
      •         Massage spas 
      •         Nail technicians
      •         Hair salons 
      •         Relief organisations
      •         Social service organisations 
      •         Tax organisations 
      •         Accounting firms
      •         And more 

In reality, any business that depends on appointments to facilitate customer interactions and sales may feel the negative impacts of a no-show client. 

Impact of No-Shows on Different Businesses

So how do no-shows impact businesses in different industries? Generally, the outcome of frequent no-show appointments can vary depending on factors such as overall business volume, salaries, etc. However, one thing all businesses impacted by no-show appointments have in common involves lost revenue. 

In the medical world, patient no-shows reduce the efficiency of already over-taxed clinics, doctor’s offices, and mental health professionals. 

Beyond lost revenue, no-show appointments can spell disaster for fledgling businesses that depend on performance efficiency to meet break-even goals.

For tightly-booked hair professionals, tattoo artists, and beauty salons, no-show appointments result in additional lost revenue thanks to the increased potential for wasted products, such as ink, custom hair appliances, etc. 

Why No-Shows Happen

Part of being in business means serving customers from all walks of life. As such, patients and customers may have many different reasons to miss or skip an appointment without cancelling. 

Some common reasons patients may skip medical appointments include the following:

      •         Chronic conditions, disability, or illness
      •         Poor memory 
      •         Anxiety or negative feelings 
      •         Transportation issues
      •         And more

For appointment-based businesses in beauty and other industries, no-show appointments may occur for reasons such as:

      •         Major life events
      •         Sudden changes in client schedule
      •         Transportation issues
      •         Illness
      •         And more 

When dealing with no-show appointments or creating a no-show policy, it helps to leave room to consider that some no-show situations may be beyond the client’s control. 

However, clients who repeatedly fail to show up for their appointment times can and will cost any business time, money, and stress.  Tracking your business’s no-show rates can help you determine when to take action regarding clients who fail to adhere to appointment times. 

Why Tracking No-Shows Is Important

As mentioned above, tracking your client base’s show rate can help determine when to restrict client access to your business, charge no-show fees, or enact other protective measures. 

Tracking your rate of no-show appointments also gives you a solid idea of how much revenue you lost due to missed appointment times. 

Consider the average amount of revenue you or your business makes during a typical session or appointment time slot. Use this number as your reference when estimating how much total potential revenue your business organisation loses to no-show appointments. 

For medical clinics, no-show appointments reduce efficiency in critical ways. In short-staffed or overburdened medical networks, scheduling holes place unnecessary delays on much-needed medical care for some patients. Tracking no-show rates for medical appointments helps clinics increase efficiency and provide better care for more patients. 

Methods of Reducing No-Shows

Now that you have a stronger idea of how much no-show appointments may be costing your business in time, revenue, and overall efficiency, you may be curious about ways to reduce these losses. 

To help reduce the occurrence of no-show appointments in your business, you can try one or more methods, including:

      •         Educating customers on how missed appointments impact organisations
      •         Detailed service explanations
      •         Minimizing distant scheduling 
      •         Establish a no-show appointment policy
      •         Employ a client-focused SMS system for appointment reminders and customer interactions 
      •         Schedule appointment reminder courtesy calls 
      •         And more

Whether you’re trying to increase client or patient focus on keeping appointment times or communicating policy changes, SMS systems remain an affordable and easy-to-implement solution. 

Benefits of SMS Alerts and Notifications

Using an SMS system offers many benefits for different businesses. Consider these pros when deciding whether SMS is right for your business:

      •         Easy installation 
      •         Automation of mass messaging for policy changes, etc. 
      •         Automatic appointment reminders
      •         Text-based appointment confirmation or cancellation
      •         Text-based form link distribution
      •         Sales alerts
      •         Automated shipping notifications 
      •         Improved customer relationships 
      •         And more 

Improve Customer Relations with TouchSMS

At touchSMS, we’ve seen SMS systems drastically improve customer communications and help reduce the rate of no-show appointments across multiple industries. 

If you’re ready to tackle no-show appointments head-on and improve your business’s revenue, customer satisfaction, and appointment retention rate, we can help. Schedule your consultation for SMS solutions with touchSMS by using our convenient online form or calling 1300 794 419 today.