You’ve all heard the expression: “How long is a piece of string?” It’s a question for which there is no right answer.
One of the big questions in telemarketing is: How many positive results (leads, appointments, referrals, questions answered, seats or products sold) will you need for telemarketing to warrant a place in your company’s marketing mix?

Granted, this is not an exact science but in business we all have to draw the line somewhere.

If you’ve given yourself 3 months to break even and you spend £1000 per month on telemarketing, then you need to obtain a minimum of £3000 worth of new business in order to justify the investment.

Next, calculate your average conversion rate of appointments. For example, if you attend 3 appointments and convert 1 into new business you have a 1 in 3 conversion rate.

Then look at your average transaction value from a successful appointment and determine how many appointments you’ll need to generate to break even. For example, if your average transaction is £1500, you’ll need 2 successful appointments to reach £3000 in new business. This means you’ll need to generate at least 6 appointments in total during the 3 months you conduct telemarketing.

Simple really… and the person sharing this information failed Mathematics in high school!

If anything in this article is still not sitting right for you, call me on +44 208 133 0702 or email shaun@phoneforbusiness.com

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