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How COVID-19 Has Impacted Call Volume for Small Businesses – Multiple Industry Analysis

Maria DAlleva

Posted in Small Business and tagged

If you have watched the news even once during the COVID-19 coverage, you’ve heard stories about how small businesses have been hard-hit by the disaster, many unsure if they will have a business to go back to after the smoke clears and the dust settles. As an answering service, we’ve seen clients with rapid increases in call volume, clients whose call volume nearly dropped off, and new clients who signed on during lockdown, realizing how much they needed a service to manage customer care after they had to downsize. We wanted to get an idea of the broad impact that the coronavirus has had over a variety of industries. So, we researched inbound usage for several existing clients, and we found some interesting results to share with you – some obvious, and others, not so obvious. Take a tour of call volume trends from January through April of 2020 – pre-pandemic, and at the height of the crisis.

Event Venues

With weddings and graduations being sidelined all across the country, it’s not at all surprising that event venues have seen a drop in call volume over the last few months. Not only are people postponing or cancelling events, but without a definitive date when social distancing measures will ease, people aren’t scheduling any new events, either. Event Venue A experienced a 50% downturn from February to March, and another 73% drop from March to April – nearly double Event Venue B, which saw decreases of 27% and 36%, respectively. According to Wedding Wire, the average wedding utilizes about 15 vendors, e.g., the facility, photographer, caterer, stylist, and more. And those vendors employ a group of people to perfect every detail. So, the venues aren’t the only ones losing out.

Event Industry Call Volume

Balloon & Flower Vendors

One might expect that if events are being cancelled, balloon and flower sales are also taking a dive. In the case of these two clients, one would be wrong. Luckily for flower shop owners, making the switch from storefront sales to online only enabled those originally non-essential businesses to remain open. And with no one actually able to celebrate birthdays and other major events in person, a bouquet of flowers, a bunch of balloons, and a drive-by party will have to do the trick. Balloons floated up by 33% from February to March and continued their streak into April. Flowers saw a 13% growth spurt from February to March, and another 37% upshoot from March to April. Whether for birthdays, graduations, Easter, Passover, or advanced orders for Mother’s Day, things are looking up for these retailers.

Balloon And Flower Vendor Call Volume

Commercial Cleaners

As we’ve come to appreciate, the companies that are dedicated to cleaning and sanitizing medical facilities and essential businesses are indispensable, and never more so than when a novel virus is carving its way through the population. A quick glance at the graph below shows that Commercial Cleaner A, based in New York – aka the hot spot of the coronavirus outbreak in the United States – has been inundated with calls, showing a 290% surge from February to March, with numbers continuing to rise another 32% in April. While Commercial Cleaner B’s usage is not as astronomical, they still had a 73% upswing from February to March in their California setting, before a nearly equal 71% downtrend from March to April, possibly the result of one-time March sanitization of the many establishments on lockdown.

Commercial Cleaner Call Volume

IT Service & Sales

There’s nothing like an epidemic to force a crash course in how to turn your business from brick-and-mortar to work-from-home, virtually overnight. The amazing thing about technology is that we live in a time when radically changing your business model is not only plausible but feasible. A sudden shift in protocol means that the not-so-tech savvy will need help getting everything together. It makes sense, then, that two of our Business and Residential IT Service clients saw a spike in calls from February to March, springing up 78% and 143%, respectively. But a company that specializes in commercial IT Sales fell off by 52% between February and March as businesses began to close their doors, and dove another 53% into April.

IT Sales & Service Call Volume

School Safety

School’s out for the summer! And the restrictions imposed by the coronavirus have affected more than just educators and administrators. When you think of grade schools and universities, school safety personnel aren’t usually the first people who come to mind. Yet, especially in the days of Sandy Hook and Parkland, they are a vital part of a properly functioning institution. Unfortunately, school shootings aren’t the only incidents that claim lives on campus. According to the National Fire Protection Association, from 2011 to 2015, fire departments in the United States responded to around 4,100 structure fires in campus properties, 92 of which were fatal. As we can see, fire safety consultants for college campuses saw a 68% decline in call volume from February to March, which makes sense, given that hundreds of schools closed their doors. And as students hurriedly left their dorms, one campus’ emergency line had a 98% decline between March and April.

School Safety Call Volume

Hair Salons

Though a few states have begun to reopen businesses previously deemed non-essential, the vast majority of areas remain buttoned up. Stylists may be able to create videos showing you how to trim your own hair, but there’s no revenue in a DIY video, unless you’re charging for it. So, salons and spas have definitely lost out on a wealth of business – not only on regular cut and color appointments, but also on updos for prom, which some students held virtually. Salon A, in North Carolina, stayed steady through March, as the state did not institute mandatory closures of personal care and grooming facilities until March 25th. Calls subsequently fell by 59% from March to April. Salon B, in Georgia, had a 69% slump in usage between February and March, when local governments shut businesses down – despite not having an official order from the governor until April.

Hair Salon Call Volume

Mental Health Counseling

Not catching COVID-19 is at the forefront of everyone’s mind, which is why social distancing campaigns are in place across the globe. But what happens to mental and emotional well-being when we’re all staying at home, missing out on personal connections with family, friends, and coworkers? A lot, as it turns out.

Depression, anxiety, substance use, domestic violence and child abuse can and likely will get worse during this crisis, as past disasters have taught us. And, as time rolls on, mental health counselors will have a crisis all their own, trying to help individuals and families recover from the mass chaos brought on by such a tiny virus. For two mental health counselors in New Jersey, we see inverse call volume. But why has one decreased while the other increased? Perhaps Counselor A is not offering telehealth appointments, which could explain the 50% decline between March and April. Or maybe, location plays a role. Counselor A is based in the lower part of New Jersey, closer to the Philadelphia area and less of a COVID-19 battleground than northern parts of the state. Counselor B, who has seen a 231% climb in inbound traffic from March to April, is based in upstate New Jersey, just outside of New York City – which has a higher COVID-19 mortality rate than anywhere else in the country. If that’s not a reason to need a counselor, then what is?

Counselors Call Volume

Resorts & Hotels

So, what do you do when you’re bored out of your mind working from home? If you have the means and the mode of transportation, you go on vacation, or you plan one so that you can decompress when this horror story is behind us. That’s what two stateside vacation resorts have seen in the past two months, despite the fact that the travel industry as a whole has taken a big hit. If you’re going to be forced to shelter in place, you may as well do that somewhere with sun and fun, rivers, tubing, beaches, water sports, and most of all, a respite from the cares of the world. Resorts A and B have both seen usage upticks, the most prominent being Resort A – with a 192% burst between March and April. Resort B trailed quite a bit but still did well, showing 71% more inbound traffic. Of note, international Resort C experienced a 66% fall in usage during the same time frame. If no one is flying, they’re not going to be booking international vacations, no matter how great the mojitos are.

Resorts Call Volume

While we have some resorts doing well, our smaller stateside hotel clients are receiving less volume. In fact, according to the American Hotel & Lodging Association, hotel occupancy rates are projected at 20% or less, which will leave some smaller establishments with no choice but to close their doors.

Hotels Call Volume

Veterinary Medicine

They say that every dark cloud has a silver lining. And one of the most heart-warming silver linings of the ominous coronavirus cloud is that pet fostering and pet adoption rates have increased. Why? Because all you need is love! 4-legged, fur babies to bring a smile to your face and ease your pain while you shower them with cuddles. For the first time in years, many shelters are empty, and more dogs and cats in happy homes equals more vet visits. We looked at four veterinary practices, and all four showed increased call volume. Vet A had a 139% swell from March to April. Vet B’s calls increased in March, going up by 76% from their February usage. Vets C and D both increased February through April. There’s nothing like taking a disaster and turning it into a reason to spread joy and unconditional love – such a beautiful thing!

Veterinary Call Volume

Food & Beverage

The food and beverage industry has endured all sorts of changes in the past two months that no one saw coming. If you’ve tried to get into the grocery store during senior hours, purchased hand sanitizer made by a distillery, or enjoyed curbside service from your favorite dine-in only restaurant, then you’ve seen the adaptability of businesses in your area, necessitated by the “new normal.” What we found particularly curious are two industries that have seen unexpected peaks and valleys, even in these crazy times.

The first, online alcohol sales. Bars are closed. Liquor stores are closed (but some now offering pickup). So, where do you go when you want a glass of chardonnay and your wine rack is bare? Storm your neighbor’s kitchen and trade a roll of toilet paper for a bottle of the good stuff? Nope. You have it shipped right to your door. For our online alcohol retailer, this manifested into a 55% increase from February to March followed by a 77% push from March to April.

Unfortunately, dairy suppliers have had less luck than their spirited colleagues. Regardless of the empty supermarket shelves at the onset of the pandemic, or the continued need for milk, butter and cheese, dairy farmers have been asked to dump milk because of a crippled supply chain. If you can’t guarantee freshness due to delays in delivery, then you can’t sell the product. That explains the 42% loss for our dairy client between February and March followed by a 14% decline from March to April.

Food & Beverage Call Volume

Traffic Incidents & Vehicle Services

Of the industries we researched, we found a fascinating correlation between a few companies that are decidedly linked, though it’s not something that we would normally make the super short leap to connect. That’s why research is so cool! Let’s look at 1) the online alcohol retailer, 2) an alcohol level monitoring company, 3) a driving hotline, and 4) collision repair.

As we recall from our last segment, with bars and liquor stores closed, online alcohol sales have gained. And with people no longer having to leave their homes to imbibe, there are fewer drunk drivers on the roadways. The graph below shows an inverse relationship between the amount of online alcohol sales, a 77% rise from March to April, and the amount of calls received by a company that monitors breathalyzers installed in vehicles to prevent driving while intoxicated, a 10% fall during the same time frame. While the number of alcohol monitoring calls has not decreased by much for our client, we are grateful for any reduction in drunk driving. This story is echoed in cities across the country, with reduced DUIs between March and April.

Alcohol Call Volume

Fewer drunk drivers on the road, in addition to the millions who are staying put with everything on lockdown, means fewer calls to driving and traffic incident hotlines – an 18% dip from February to March, and another drop by 44% from March to April. And, if the highways are less congested and people are paying more attention to the road instead of, well, just about anything else, there are less accidents, and thereby, less of a need for collision services. An 11% downshift for our auto body repair client between February and March, and another 12% fall in April.

Driving Hotline Call Volume

Viruses don’t care who you are, where you live, or how successful you’ve become. They don’t wait for your finances to be in perfect shape so that you’ll be able to weather the storm when they strike. And they don’t ask what type of business you run, or how much their existence will interfere with your and your staff’s livelihood. There is no denying the massive impact that the coronavirus has had on our society and the world. But, with a little ingenuity, your small business can and will bounce back from this.

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