Lead Response Time Statistics: The Data Every Contractor Should Know [2024]

The Numbers That Should Change How You Handle Leads

We analyzed data from thousands of home service interactions to understand exactly how response time affects your bottom line. The results are clear: speed isn't just important—it's everything.

Key Statistics at a Glance

Response Time & Conversion

Key Insight: The difference between responding in 1 minute vs. 1 hour is a 391% improvement in conversion. That's not incremental—that's transformational.

First Responder Advantage

• 78% of customers buy from the first company to respond
• 50% of leads go to whoever responds within 5 minutes
• 35-50% of sales go to the vendor that responds first
• Average customer contacts 2.3 companies before making a decision
• Once booked, 91% of customers stop shopping

The After-Hours Opportunity

• 62% of home service inquiries come outside 9-5 business hours
• 35% of inquiries come on weekends
• 44% come between 6pm and 9am
• Average after-hours response time: 14+ hours
• After-hours leads are 27% more valuable (higher urgency, larger jobs)

Industry Benchmarks

The gap is your opportunity. If your competitors take 4+ hours to respond and you respond in 5 minutes, you win by default.

The Cost of Slow Response

Lost Revenue Calculator

For a typical home service company:

• Monthly website leads: 50
• Average job value: $800
• Current response time: 4 hours
• Current conversion rate: 15%
• Monthly revenue from web leads: $6,000

If response time improved to under 5 minutes:

• New conversion rate: 29% (+93%)
• New monthly revenue: $11,600
• Additional monthly revenue: $5,600
• Additional annual revenue: $67,200

The Compounding Effect

Slow response doesn't just lose the immediate job—it loses:

• The customer's lifetime value (avg. 7-10 years)
• Referrals they would have made (avg. 2.3 per satisfied customer)
• Reviews they would have left
• Their emergency calls (highest-value jobs)

True cost of one lost lead: $3,000-$15,000 depending on industry.

Why Speed Matters: The Psychology

1. Peak Intent Window

When a homeowner searches for "AC repair near me," their intent to buy is at maximum. Every minute that passes, that intent decays:

• 0-5 minutes: 100% intent (they're still thinking about the problem)
• 5-30 minutes: 75% intent (they've moved on to other tasks)
• 30-60 minutes: 50% intent (problem feels less urgent)
• 1+ hours: 25% intent (they'll "deal with it later")

2. First Mover Trust

The first company to respond benefits from:

• Primacy effect: First information received is weighted more heavily
• Perceived reliability: "If they respond fast, they'll show up fast"
• Reduced comparison shopping: Why keep looking if someone already helped?

3. The Urgency Factor

Home service needs are often urgent. The customer's emotional state:

• Immediate response: "Thank god, someone can help"
• Delayed response: "Why isn't anyone answering? I'll try someone else"

How Top Performers Achieve Fast Response

Technology Stack of Fast Responders

Process Improvements

1. Dedicated lead handling - Someone's only job is responding to leads 2. Response time SLAs - Internal targets (e.g., "respond in under 5 minutes") 3. 24/7 coverage - AI or human, someone is always available 4. Pre-qualification - Gather info before human follow-up needed

The Bottom Line

The data is unambiguous:

• Fast response = more jobs
• First response = highest close rate
• After-hours response = untapped opportunity

The average home service company takes 4+ hours to respond to leads. The top 10% respond in under 10 minutes.

That gap is worth hundreds of thousands of dollars per year. The only question is whether you'll capture it or let your competitors have it.

Sources

• MIT Lead Response Study
• Harvard Business Review: "The Short Life of Online Sales Leads"
• InsideSales.com Response Audit
• RapportAgent Internal Data (2023-2024)