How about fixing the number of qualified leads turning into sales opportunities? If we doubled that number from 15% to 30%, sales would double, and the cost to the company would be the cost of a lead nurture campaign and some small marketing ad spend. The final number is churn, or customer cancellation rate. Without this number, it is difficult to know if you’re winning (growing at a reasonable rate) or losing (treading water or going backward). In my new book coming out soon, I walk you through all the math to calculate your customer cancellation rate. A good rule of thumb to get you started is the idea that if they were supposed to buy again
If you spend $35 to get a lead, it would cost you $1,944 to make one sale. My guess is your average customer doesn’t spend nearly $2,000 per month, let alone make an average of $2,000 in profit per month, so you’ll go negative. But what would happen if we fixed just a few of those numbers above? For example, what if we taught the salesperson some new tricks, and they could close at a higher rate? After all, 20% is a very low close rate in nearly all industries. What if we could help the salesperson by educating leads so that when they’re ready to buy, they are knowledgeable and predisposed to do business with you? Wouldn’t that help?
Once you understand the cost, you need to look at your success rate at each step.
For example, if you get 100 leads and 40 are not qualified, you’ll have a 60% success rate in generating qualified leads. Next, look at how much it costs to have a sales conversion and what percentage of the number of qualified leads turn into a sales opportunity. If 15% of your qualified leads turn into sales opportunities, that means that for every 100 new leads (qualified or not), you have the chance to sell to nine people. Now, look at your salesperson’s close rate. If they close at 20%, you’ll get approximately 1.8 sales for every 100 leads you generate.
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ATINGYOUR UPS
Have You Heard the Good News?
omers at ‘Hello’ Producing Cold Calls That Sell,” Dave Tester gives his readers the tools to master the dreaded cold-call and become a sales superstar! With this book, say goodbye to those nerves before you start dialing and say hello to success. According to Dave, today’s voice channels are alive and continue to grow as one of the predominant sales tools on the market. Through his book, you’ll learn everything you wish you’d learned before your first day on the job in a way that is sometimes fun, sometimes funny, and always concise and informative.
Acts 18:9–10 — “One night the Lord spoke to Paul in a vision: ‘Do not be afraid; keep on speaking, do not be silent. For I am with you, and no one is going to attack and harm you, because I have many people in this city.’”
common problems that lead to rejection, present yourself in a way that will make customers feel like you’re saving them time rather than wasting it, spot and work with different personality types over the phone, and so much more. Whatever the lesson or helpful tip, you can rest assured that Dave’s observations will be powerfully relevant to your workplace and your success. With ”Dialing Strangers,” talking to strangers doesn’t have to be a hassle, and it can even be fun! Using this concise guide as a resource, you’ll eliminate your hangups and have your potential customers at “hello.”
Romans 12:9 — “Love must be sincere. Hate what is evil; cling to what is good.”
Galatians 5:13 — “You, my brothers and sisters, were called to be free. But do not use your freedom to indulge the flesh; rather, serve one another humbly in love.” 2 Corinthians 3:17 — “Now the Lord is the Spirit, and where the Spirit of the Lord is, there is freedom.”
This book covers a lot of ground in a brief space. In just 124 pages, you’ll learn how to eliminate
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