Small service business statistics: the follow-up gap, stage by stage
57 statistics on how small service businesses win and lose work, from the first call to the follow-up after the quote. Every number links to its original source.
By
Jonathan Tingey
, Co-Founder of Questic. Updated October 12, 2026.
A lot of work is won or lost between the first call and the follow-up after the quote. Calls
go unanswered, replies come later than customers expect, and most quotes need a follow-up
before they close.
I call the distance between what customers expect and what a busy office can deliver the
follow-up gap. This page puts numbers on it. It brings together 57 statistics
from government agencies, research firms, trade publications and industry studies, grouped
into the six stages a job moves through. Each one comes with what it means for an owner,
office manager or dispatcher.
Key findings
27% of calls to home services businesses go unanswered, by one call-tracking platform's count.
See stat 1
Less than 3% of callers sent to voicemail leave a message.
See stat 2
Nearly 60% of consumers expect a reply within an hour of a web form. Only 36% get one.
See stat 15
Only 20% of home service business owners say they reply to new leads within an hour.
See stat 13
72% of consumers say they are likely to choose the business that responds first.
See stat 18
Only 37% of in-home sales opportunities close on the first visit.
See stat 23
56% of U.S. small businesses surveyed do not use a CRM.
See stat 41
Owners of businesses with five or fewer employees report a median 60-hour week.
See stat 37
46% of consumers prefer texting a business, edging out phone at 43%.
See stat 47
AI use by U.S. businesses ranges from 19.8% (Census Bureau) to 66% (U.S. Chamber), depending on who is asked.
See stat 49
Stage 1: Leads come in
Leads come in, and many never reach a person
Most service work still starts with a phone call or a form. Call-tracking data shows a large share of calls to home services businesses go unanswered, and almost nobody leaves a voicemail. Customers also shop around: most collect more than one quote.
27% of calls to home services businesses are not answered, according to Invoca's analysis of calls on its platform. Source: Invoca, "How much missed sales calls cost home services businesses", May 2024. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-1
Less than 3% of callers who are sent to voicemail leave a message, according to Invoca's platform data. Source: Invoca, "How much missed sales calls cost home services businesses", May 2024. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-2
Across home services, 52% of calls are answered by a person. For calls longer than 15 seconds the answer rate is 65%, and for calls over 30 seconds it is 73%.
What it means: Even counting only real conversations, roughly a quarter to a third of calls are not answered by a person.
Source: Invoca, Home Services Lead Conversion Benchmarks Report 2026
(Jul 2026). Who: Calls to home services businesses in Invoca's customer base (nine home services sub-industries). Sample: Home services subset of 70M+ calls across 10 industries.
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Across home services, 52% of calls are answered by a person. For calls longer than 15 seconds the answer rate is 65%, and for calls over 30 seconds it is 73%. Source: Invoca, Home Services Lead Conversion Benchmarks Report 2026, Jul 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-3
CallRail's analysis of 1.1 million conversations put the home services missed call rate at 14%, compared with 32% for healthcare and 28% for legal.
What it means: Missed call rates vary widely by platform and how calls are counted, so measure your own. Even the lowest figure is about one call in seven.
CallRail's analysis of 1.1 million conversations put the home services missed call rate at 14%, compared with 32% for healthcare and 28% for legal. Source: CallRail, "From conversations to conversions" benchmark report, Jan 2025. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-4
CallRail data shows that, on average, 28% of business calls go unanswered. Source: CallRail press release, "CallRail opens Voice Assist to every business", Jul 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-5
64% of residential contractors still rely on phone calls as the dominant form of communication with customers.
What it means: For most trades, the phone is still the front door. Whatever happens after the call has to be written down somewhere the whole team can see.
Source: ServiceTitan, 2025 Residential Services Report
(Mar 2025). Who: U.S. residential service contractors (HVAC, plumbing, electrical, roofing and others). Sample: 1,000+ residential contractors (Thrive Analytics for ServiceTitan).
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64% of residential contractors still rely on phone calls as the dominant form of communication with customers. Source: ServiceTitan, 2025 Residential Services Report, Mar 2025. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-6
35% of Americans prefer the phone for contacting businesses for customer service, 23% prefer email, 10% live chat and 5% website forms. Source: YouGov, "How Americans prefer to contact businesses for customer service", Mar 2025. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-7
41% of U.S. consumers who recently made a large purchase prefer calling when they have a problem and need help, more than any other channel, rising to 52% among Boomers.
What it means: For bigger jobs, many customers still want to talk to a person.
Source: Invoca, 2026 B2C Buyer Experience Report
(Jun 2026). Who: U.S. consumers who made a purchase over $500 (over $1,000 for travel) in the past 12 months, seven industries including home services. Sample: 693 U.S. respondents.
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41% of U.S. consumers who recently made a large purchase prefer calling when they have a problem and need help, more than any other channel, rising to 52% among Boomers. Source: Invoca, 2026 B2C Buyer Experience Report, Jun 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-8
In a survey of 400 homeowners, 66% said they would get three quotes before choosing an HVAC contractor, 26% two quotes, 6% more than three, and 2% only one.
What it means: Almost every customer is comparing you with someone else. The quote is the start of the sale, not the end of it.
In a survey of 400 homeowners, 66% said they would get three quotes before choosing an HVAC contractor, 26% two quotes, 6% more than three, and 2% only one. Source: ACHR News, "Steps HVAC contractors can take to win the bid", Oct 2023. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-9
Home service business owners name referrals and repeat customers as their most common lead sources (59%), followed by Facebook (32%), local networking or partnerships (25%), Google Search (20%) and Local Services Ads (19%).
What it means: Your best leads come from people you already served. Keeping past customers organized and in touch is a lead source in its own right.
Home service business owners name referrals and repeat customers as their most common lead sources (59%), followed by Facebook (32%), local networking or partnerships (25%), Google Search (20%) and Local Services Ads (19%). Source: Jobber, Blue Collar Strong: The 2026 Home Service Trends Report, Mar 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-10
80% of U.S. homeowners say they factor in online booking when deciding on a home service pro. Source: Housecall Pro, The New Home Service Standard, Dec 2025. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-11
Asked which hours of phone support would best meet their needs, 39% of U.S. consumers chose 9 a.m. to 5 p.m. and 24% chose 5 p.m. to 9 p.m. Source: Moneypenny, "Moneypenny research reveals the customer caller experience gap", Apr 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-12
Stage 2: Speed to respond
Speed to respond decides who gets the job
Customers expect a fast reply and say they will move on without one. Owners report very different response times from what customers say they receive. The business that answers first starts with an advantage that is hard to win back.
20% of home service business owners say they respond to new leads within an hour, 60% the same day and 18% within two days. Source: Jobber, Blue Collar Strong: The 2026 Home Service Trends Report, Mar 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-13
More than half of residential contractors say they respond to new leads within the first hour.
What it means: Surveys of owners disagree on how fast the trades respond. The only number that matters is your own, so track it.
Source: ServiceTitan, 2026 Residential State of the Trades
(Apr 2026). Who: U.S. residential contractors (owners, executives, managers; self-reported). Sample: 1,000 residential contractors (Thrive Analytics for ServiceTitan).
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More than half of residential contractors say they respond to new leads within the first hour. Source: ServiceTitan, 2026 Residential State of the Trades, Apr 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-14
Nearly 60% of U.S. consumers who recently made a large purchase expect a response within an hour of filling out a form on a business website, but only 36% say brands meet that expectation.
What it means: The gap between what customers expect and what they get is the opening. Answering within the hour sets you apart.
Source: Invoca, 2026 B2C Buyer Experience Report
(Jun 2026). Who: U.S. consumers who made a purchase over $500 (over $1,000 for travel) in the past 12 months, seven industries including home services. Sample: 693 U.S. respondents.
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Nearly 60% of U.S. consumers who recently made a large purchase expect a response within an hour of filling out a form on a business website, but only 36% say brands meet that expectation. Source: Invoca, 2026 B2C Buyer Experience Report, Jun 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-15
79% of U.S. consumers who recently made a large purchase say they will switch to a competitor that responds faster.
What it means: Speed is a reason to switch. A slow reply hands the job to the next name on the list.
Source: Invoca, 2026 B2C Buyer Experience Report
(Jun 2026). Who: U.S. consumers who made a purchase over $500 (over $1,000 for travel) in the past 12 months, seven industries including home services. Sample: 693 U.S. respondents.
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79% of U.S. consumers who recently made a large purchase say they will switch to a competitor that responds faster. Source: Invoca, 2026 B2C Buyer Experience Report, Jun 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-16
When a brand is slow to respond to a lead form, 46% of U.S. consumers who recently made a large purchase try to contact the brand again, 27% move to a competitor, 3% give up on the purchase and 24% wait it out.
What it means: Fewer than one in four customers wait patiently. Nearly half chase you, which means more calls and messages your team has to catch.
Source: Invoca, 2026 B2C Buyer Experience Report
(Jun 2026). Who: U.S. consumers who made a purchase over $500 (over $1,000 for travel) in the past 12 months, seven industries including home services. Sample: 693 U.S. respondents.
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When a brand is slow to respond to a lead form, 46% of U.S. consumers who recently made a large purchase try to contact the brand again, 27% move to a competitor, 3% give up on the purchase and 24% wait it out. Source: Invoca, 2026 B2C Buyer Experience Report, Jun 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-17
72% of U.S. consumers say they are likely to choose the business that responds first, while 91% of U.S. business decision-makers think customers are likely to.
What it means: Owners already believe speed wins. Most customers agree. The hard part is having a system that makes a fast reply happen every time.
72% of U.S. consumers say they are likely to choose the business that responds first, while 91% of U.S. business decision-makers think customers are likely to. Source: Moneypenny, "Moneypenny research reveals the customer caller experience gap", Apr 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-18
97% of U.S. homeowners say response time influences who they hire. Source: Housecall Pro, The New Home Service Standard, Dec 2025. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-19
Pros on Thumbtack who respond to a lead within thirty minutes are 25% more likely to get hired than those who respond within three hours. Source: Thumbtack, "3 takeaways from the 2025 Pro Summit", Nov 2025. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-20
In a 2025 secret-shopper test of 1,333 U.S. law firms' online lead forms, the median response time was 13 minutes, 25% responded in under 5 minutes, 56% within an hour, and 26% did not respond within seven days.
What it means: When someone actually tested response times, about a quarter of firms did not reply within a week. This test covers law firms, not trades.
In a 2025 secret-shopper test of 1,333 U.S. law firms' online lead forms, the median response time was 13 minutes, 25% responded in under 5 minutes, 56% within an hour, and 26% did not respond within seven days. Source: Hennessey Digital, 2025 Lead Form Response Time Study, 2025. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-21
In the 2007 Lead Response Management Study, the odds of contacting a web lead were 100 times higher, and of qualifying it 21 times higher, when it was called within 5 minutes instead of 30 minutes.
What it means: This older study is still the one most often cited on speed to lead. It measured contacting and qualifying leads, not closed sales.
In the 2007 Lead Response Management Study, the odds of contacting a web lead were 100 times higher, and of qualifying it 21 times higher, when it was called within 5 minutes instead of 30 minutes. Source: Elkington and Oldroyd, InsideSales.com and MIT Sloan, Lead Response Management Study, Oct 2007. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-22
Stage 3: Quote follow-up
Most quotes need a follow-up to close
Most estimates do not close on the first visit, and homeowners compare prices and delay projects. Contractors who follow up on unsold estimates report real added revenue. Popular claims such as "80% of sales need five follow-ups" could not be traced to an original study, so they are not in this report.
According to ServiceTitan data, only 37% of in-home sales opportunities convert immediately, leaving the majority dependent on follow-up. Source: ServiceTitan, "Follow-Ups 101: Back 2 Basics", Apr 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-23
Nearly half (47%) of residential service contractors with annual revenue of $10 million or more said following up on estimates results in 11 to 15% of their income.
What it means: The biggest contractors treat unsold estimates as a revenue source. A smaller shop can run the same habit with a simple list and a due date.
Source: ServiceTitan, 2025 Residential Services Report
(Mar 2025). Who: U.S. residential service contractors with $10M+ annual revenue. Sample: 1,000+ U.S. residential service contractors (subset size not stated).
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Nearly half (47%) of residential service contractors with annual revenue of $10 million or more said following up on estimates results in 11 to 15% of their income. Source: ServiceTitan, 2025 Residential Services Report, Mar 2025. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-24
When they follow up on unsold estimates, 39% of thriving residential service businesses generate 1 to 15% of additional revenue, compared with 42% of surviving and 23% of struggling businesses.
What it means: Businesses that describe themselves as struggling are less likely to get revenue from follow-up. This shows a link, not proof of cause.
Source: ServiceTitan, 2025 Residential Services Report
(Mar 2025). Who: U.S. residential service contractors, grouped by self-described business health. Sample: 1,000+ U.S. residential service contractors.
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When they follow up on unsold estimates, 39% of thriving residential service businesses generate 1 to 15% of additional revenue, compared with 42% of surviving and 23% of struggling businesses. Source: ServiceTitan, 2025 Residential Services Report, Mar 2025. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-25
68% of U.S. homeowners seek additional quotes when pricing comes in higher than expected. Source: Housecall Pro, Home Service Spending Report 2026, May 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-26
77% of U.S. homeowners say they are delaying or reducing the scope of home projects, and 41% say they have postponed a repair that later became more expensive to fix.
What it means: A quote that goes quiet is often a delay, not a no. A follow-up weeks later can still win the job.
77% of U.S. homeowners say they are delaying or reducing the scope of home projects, and 41% say they have postponed a repair that later became more expensive to fix. Source: Housecall Pro, Home Service Spending Report 2026, May 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-27
95% of homeowners surveyed said they get more than one bid for home improvement work.
What it means: Assume every quote you send is being compared.
Source: ArcSite, 2022 Homeowner Survey Report
(Jan 2022). Who: Homeowners (country not stated). Sample: 1,000+ homeowners (ResearchScape).
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95% of homeowners surveyed said they get more than one bid for home improvement work. Source: ArcSite, 2022 Homeowner Survey Report, Jan 2022. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-28
Stage 4: Team handoffs
Small teams carry the whole load
Nearly every U.S. business is small, and most locations have only a handful of people. Owners work long weeks and lose a large share of them to admin. Hiring help is hard, especially in the trades, so the team you have needs to work from the same information.
There are 36,207,130 small businesses in the United States, and 99.9% of U.S. businesses are small. Source: U.S. SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026, Feb 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-29
U.S. small businesses employ 62.3 million people, 45.9% of private sector workers. Source: U.S. SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026, Feb 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-30
In 2022, 55.7% of U.S. employer establishments (business locations with at least one paid employee) had fewer than five employees. Source: U.S. Census Bureau, America Counts: Small Business Week, May 2025. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-31
In 2022 there were 29,811,495 U.S. businesses with no paid employees.
What it means: Most U.S. businesses are one person. Many of them will hire their first employee someday, and that is when shared systems start to matter.
In 2022 there were 29,811,495 U.S. businesses with no paid employees. Source: U.S. Census Bureau, America Counts: Small Business Week, May 2025. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-32
There were 597,027 private specialty trade contractor establishments in the U.S. in the fourth quarter of 2025, and specialty trade contractors employed about 5.28 million people in September 2026 (preliminary, seasonally adjusted).
What it means: Plumbing, HVAC, electrical, roofing and the other specialty trades make up hundreds of thousands of U.S. businesses.
There were 597,027 private specialty trade contractor establishments in the U.S. in the fourth quarter of 2025, and specialty trade contractors employed about 5.28 million people in September 2026 (preliminary, seasonally adjusted). Source: U.S. Bureau of Labor Statistics, Industries at a Glance: Specialty Trade Contractors, Oct 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-33
The U.S. construction industry needs to attract an estimated 349,000 net new workers in 2026, and 456,000 in 2027, to meet demand. Source: Associated Builders and Contractors, workforce shortage model, Jan 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-34
In September 2026, a seasonally adjusted 32% of small business owners reported job openings they could not fill, and 45% (87% of those hiring or trying to hire) reported few or no qualified applicants.
What it means: Nearly one in three small businesses has an opening it cannot fill.
In September 2026, a seasonally adjusted 32% of small business owners reported job openings they could not fill, and 45% (87% of those hiring or trying to hire) reported few or no qualified applicants. Source: NFIB, Jobs Report: Small Business Hiring Slows in September, Oct 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-35
In September 2024, 53% of small construction business owners reported a job opening they could not fill. Source: NFIB, Jobs Report: Main Street Job Openings Fall to Three-Year Low, Oct 2024. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-36
Among U.S. businesses with five or fewer employees, owners reported a median 60-hour work week, and administrative plus legal and compliance tasks took on average 22.4% of owner time.
What it means: For the owner of a small team, admin eats more than a full day of every week.
Among U.S. businesses with five or fewer employees, owners reported a median 60-hour work week, and administrative plus legal and compliance tasks took on average 22.4% of owner time. Source: UENI, "How Microbusiness Owners Spend Their Time", May 2024. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-37
U.S. entrepreneurs in growth mode spend more than a third (36%) of their work week on administrative tasks.
What it means: Time spent on admin is time not spent selling or doing the work.
Source: Time etc, "The Big Price of Small Tasks"
(Sep 2023). Who: U.S. business owners in growth mode, trading 2+ years, excluding freelancers. Sample: 251 U.S. entrepreneurs (Censuswide).
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U.S. entrepreneurs in growth mode spend more than a third (36%) of their work week on administrative tasks. Source: Time etc, "The Big Price of Small Tasks", Sep 2023. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-38
Over one in five small business owners surveyed work more than 50 hours a week, and entrepreneurs spend an average of 30 percent of their weekly workflow on document management.
What it means: Paperwork and long hours go together.
Over one in five small business owners surveyed work more than 50 hours a week, and entrepreneurs spend an average of 30 percent of their weekly workflow on document management. Source: Adobe Acrobat, 2025 Work-Life Balance Trends for Entrepreneurs, Mar 2025. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-39
In a global survey, construction professionals said they spend 35% of their time (over 14 hours a week) on non-productive activities such as looking for project information, resolving conflicts and dealing with mistakes and rework. Poor project data and miscommunication were estimated to account for $31.3 billion in U.S. rework in 2018.
What it means: When information lives in people's heads and phones, the team pays for it in hours and redone work.
Source: FMI, Construction Disconnected (via Autodesk Construction Blog)
(Mar 2018). Who: Construction leaders and decision-makers (global survey; the $31.3 billion figure is U.S.). Sample: Nearly 600 construction professionals.
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In a global survey, construction professionals said they spend 35% of their time (over 14 hours a week) on non-productive activities such as looking for project information, resolving conflicts and dealing with mistakes and rework. Poor project data and miscommunication were estimated to account for $31.3 billion in U.S. rework in 2018. Source: FMI, Construction Disconnected (via Autodesk Construction Blog), Mar 2018. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-40
Stage 5: Tools and adoption
Many small businesses still run without a CRM
Many small businesses still keep customers in spreadsheets, email and paper. Others juggle a growing stack of apps. The tools that help are the ones a team actually uses and keeps up to date.
56% of U.S. small businesses surveyed do not use a CRM. Of those, 39% use a combination of spreadsheets, email and personal productivity tools, and 8% rely on manual methods like pen and paper.
What it means: More than half of small businesses run without a CRM. Customer details end up spread across spreadsheets, inboxes and paper.
56% of U.S. small businesses surveyed do not use a CRM. Of those, 39% use a combination of spreadsheets, email and personal productivity tools, and 8% rely on manual methods like pen and paper. Source: Bigin by Zoho CRM and SMB Group, 2023 State of Customer Operations for U.S. Small Businesses, Aug 2023. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-41
In 2023, 22% of small EU enterprises (10 to 49 employees) used CRM software, compared with 61% of large enterprises (250+ employees).
What it means: Government data shows big companies are almost three times as likely as small ones to use a CRM. This survey covers the EU and leaves out firms under 10 people.
In 2023, 22% of small EU enterprises (10 to 49 employees) used CRM software, compared with 61% of large enterprises (250+ employees). Source: Eurostat, "E-business software adoption", May 2024. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-42
41% of U.S. small businesses now use 6 or more technology platforms, up 9 points from 2025.
What it means: More tools means more places for customer information to get lost. Fewer, simpler tools the whole team uses beat a big stack nobody updates.
41% of U.S. small businesses now use 6 or more technology platforms, up 9 points from 2025. Source: U.S. Chamber of Commerce, Empowering Small Business 2026, Oct 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-43
Growing small and medium businesses are about twice as likely as declining ones to have an integrated tech stack (66% vs 32%). Source: Salesforce, Small and Medium Business Trends Report, 6th edition, Dec 2024. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-44
76% of surveyed CRM users said less than half of their organization's CRM data is accurate and complete, and 37% reported losing revenue as a direct result of poor data quality.
What it means: A CRM only helps if people keep it up to date. Software that is hard to use ends up full of stale data.
76% of surveyed CRM users said less than half of their organization's CRM data is accurate and complete, and 37% reported losing revenue as a direct result of poor data quality. Source: Validity, The State of CRM Data Management in 2025, 2025. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-45
50% of B2B sellers say they are overwhelmed by the amount of technology needed to do their job, and overwhelmed sellers are 45% less likely to attain quota.
What it means: Too much software slows people down. This survey covers B2B sales teams, but the lesson carries: keep the tools simple.
50% of B2B sellers say they are overwhelmed by the amount of technology needed to do their job, and overwhelmed sellers are 45% less likely to attain quota. Source: Gartner, "Gartner Sales Survey Reveals Sellers Who Partner With AI Are 3.7 Times More Likely to Meet Quota", Sep 2024. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-46
Stage 6: Texting and AI
Customers want to text, and AI use depends on who you ask
Consumers now say they would rather text a business than call. AI use among small businesses ranges from about 20% in the Census Bureau survey to 76% in private surveys. The gap comes from who was asked and how the question was worded. Customers also want to know a real person is behind the reply.
46% of U.S. consumers say they prefer texting to contact a business always or most of the time, edging out phone at 43%. Source: EZ Texting, 2026 Consumer Texting Behavior Report, Apr 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-47
87% of U.S. consumers say they check a new text within 15 minutes, and nearly 70% expect a business to respond within an hour. Source: EZ Texting, 2026 Consumer Texting Behavior Report, Apr 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-48
According to the U.S. Census Bureau's Business Trends and Outlook Survey, 19.8% of U.S. businesses reported currently using AI as of May 3, 2026. Source: U.S. Census Bureau, "Large Firms With at Least 20 Employees Biggest AI Users", May 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-49
Less than 20% of U.S. firms with four or fewer employees reported using AI, and AI use did not change significantly among firms with fewer than 20 employees between December 2025 and May 2026.
What it means: The smallest businesses are the least likely to use AI. For them it has to be built into tools they already use, not another app to learn.
Less than 20% of U.S. firms with four or fewer employees reported using AI, and AI use did not change significantly among firms with fewer than 20 employees between December 2025 and May 2026. Source: U.S. Census Bureau, "Large Firms With at Least 20 Employees Biggest AI Users", May 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-50
66% of U.S. small businesses (fewer than 250 employees) say they now use AI, up 8 points from 2025.
What it means: Ask small businesses directly and most say they use AI in some form. This survey counts firms up to 250 employees, much larger than most service businesses.
66% of U.S. small businesses (fewer than 250 employees) say they now use AI, up 8 points from 2025. Source: U.S. Chamber of Commerce, Empowering Small Business 2026, Oct 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-51
Among U.S. small businesses that pay for AI, the median monthly AI spend is $250. Separately, around 2 in 5 (41%) say they use free AI tools. Source: U.S. Chamber of Commerce, Empowering Small Business 2026, Oct 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-52
76% of surveyed Goldman Sachs 10,000 Small Businesses participants said they are currently using AI, and 73% said their business would benefit from additional access to training and resources.
What it means: Owners in a business growth program report high AI use and still want help using it. Program participants are not a typical sample.
76% of surveyed Goldman Sachs 10,000 Small Businesses participants said they are currently using AI, and 73% said their business would benefit from additional access to training and resources. Source: Goldman Sachs 10,000 Small Businesses Voices, "AI Presents a Major Opportunity for Small Businesses", Mar 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-53
Among Goldman Sachs 10,000 Small Businesses participants who use AI, the top challenges were data privacy and security concerns (50%), lack of technical expertise (49%) and difficulty choosing the right AI tools (48%).
What it means: The barriers are trust, know-how and too many choices. AI that comes inside a simple tool, with a person reviewing what it writes, answers all three.
Among Goldman Sachs 10,000 Small Businesses participants who use AI, the top challenges were data privacy and security concerns (50%), lack of technical expertise (49%) and difficulty choosing the right AI tools (48%). Source: Goldman Sachs 10,000 Small Businesses Voices, "AI Presents a Major Opportunity for Small Businesses", Mar 2026. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-54
68% of U.S. businesses with up to 100 employees said they use AI regularly in April 2025, up from 48% in July 2024. Source: Intuit QuickBooks, Small Business Insights survey, April 2025, Jun 2025. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-55
75% of small and medium businesses are at least experimenting with AI, with growing businesses leading adoption at 83%. Source: Salesforce, Small and Medium Business Trends Report, 6th edition, Dec 2024. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-56
64% of customers would prefer that companies did not use AI in their customer service, and 53% would consider switching to a competitor if they found out a company was going to use AI for customer service.
What it means: Customers are wary of AI talking to them. Use AI to help your team write faster, and keep a person in charge of what gets sent.
64% of customers would prefer that companies did not use AI in their customer service, and 53% would consider switching to a competitor if they found out a company was going to use AI for customer service. Source: Gartner, "Gartner Survey Finds 64% of Customers Would Prefer That Companies Didn't Use AI for Customer Service", Jul 2024. Via Questic, The Follow-Up Gap Report: https://www.questic.io/small-business-statistics#stat-57
How we built this report
Every statistic comes from a primary source: government agencies (the U.S. Census Bureau,
the Bureau of Labor Statistics, the SBA Office of Advocacy and Eurostat), independent
research firms, trade associations and publications, and company research that states how it
was gathered. 20 of the 57 statistics come from sources that do
not sell a related product.
Each source page was opened and read, then a second, separate review re-opened every source
to confirm the figure, who it describes, the date and the sample size, and to make sure no
sentence claims more than the data shows. Anything that could not be traced to the original
publisher stayed out. That includes several widely repeated claims, such as "80% of sales
need five follow-ups" and "SMS messages have a 98% open rate," which we could not find in
any original study.
Research published by companies that sell related software or services is labeled "Vendor
research" so you can weigh it yourself. Studies older than 2023 are labeled "Older study."
Where sources disagree, such as missed call rates or AI adoption, we show each figure with
its source rather than averaging them. Survey answers about what people would do are
described as stated intent, not behavior.
Questic makes CRM software for small service businesses, so we have a stake in this topic.
That is why every number links to its source.
Use and cite this data
You are free to use any statistic on this page, including in articles, presentations and AI
tools, with a link back to this page. The full data set is free to download under a Creative
Commons Attribution 4.0 license.
Questic, "The Follow-Up Gap Report: Small Service Business Statistics 2026," October 12, 2026, https://www.questic.io/small-business-statistics
What percentage of calls to home service businesses go unanswered?
It depends on the data source. Invoca found 27% of calls to home services businesses are not answered (May 2024), and its 2026 benchmark found only 52% of home services calls are answered by a person. CallRail put the home services missed call rate at 14% across 1.1 million conversations (January 2025). Less than 3% of callers sent to voicemail leave a message.
How fast should a small business respond to a new lead?
Within an hour, and faster where possible. Nearly 60% of U.S. consumers who recently made a large purchase expect a reply within an hour of filling out a web form (Invoca, 2026), and Thumbtack found pros who respond within 30 minutes are 25% more likely to be hired than those who respond within three hours.
How many quotes do homeowners get before hiring a contractor?
Most get more than one. In a survey of 400 homeowners, 66% said they would get three quotes before choosing an HVAC contractor and only 2% would get one (ACHR News, 2023). In a 2022 ArcSite survey, 95% of homeowners said they get more than one bid.
What percentage of small businesses use a CRM?
In a 2023 survey of U.S. small businesses with 100 or fewer employees, 56% did not use a CRM (Zoho and SMB Group). Government data from the EU shows 22% of small enterprises with 10 to 49 employees used CRM software in 2023, compared with 61% of large enterprises (Eurostat).
How many small businesses use AI?
Estimates range widely. The U.S. Census Bureau found 19.8% of U.S. businesses using AI as of May 2026, and less than 20% of firms with four or fewer employees. The U.S. Chamber of Commerce found 66% of small businesses with fewer than 250 employees use AI (2026). The difference comes from who was surveyed and how the question was asked.
Do customers prefer to text or call a business?
Texting has edged ahead. In a 2026 EZ Texting survey, 46% of U.S. consumers said they prefer texting a business always or most of the time, compared with 43% for phone. Invoca found 41% of consumers who recently made a large purchase still prefer calling when they need help.
Where does the data in this report come from?
Every statistic comes from a primary source: government agencies such as the U.S. Census Bureau, the Bureau of Labor Statistics and the SBA Office of Advocacy, independent research firms, trade associations, and company research with a stated method. Each source page was opened and checked twice. Research published by companies that sell related products is labeled as vendor research.
About the author
Jonathan Tingey is Co-Founder of Questic, where he leads marketing, sales, growth and
onboarding. He has spent 10 years in marketing, worked with hundreds of businesses, and
used dozens of CRMs and project management tools along the way.
More about Jonathan
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