Sales Outsourcing Companies

Some simple ROI Guidleines

ym-ladderWorking out whether outsourced marketing services are for you is a lot more straightforward than you may think. You need to ask 3 specific questions:

  1. What does a sales appointment cost?
  2. What is your appointment to sales closure rates?
  3. What is the lifetime value of your average customer?

Let’s assume a fully qualified b2b sales appointment, with named decision maker, supported by answers to pre-defined profiling questions and set in the diary of a sales professional, costs around £150

So, taking that £150 figure, now consider question 2 – what are your closure rates?

Let’s take a typical ratio – 1:4 (one closed deal from every 4 appointments)
The ‘cost’ therefore of a new customer using these figures is 4 x £150 or £600.

To decide whether appointment setting services are a cost effective option, the £600 simply needs to be compared to the answer to question 3 – what is the lifetime value of your prospective client (i.e. the initial order value plus any subsequent revenue that the client would typically contribute)?

The nature of your business is crucial. If you manufacture ‘goods’ that sell in single units at £200 each , direct to consumers, then this model is not for you. If however one or more of the following criteria apply, then the likelihood is that outsourced b2b appointment setting services will really add value to your business:

  • Highly priced product or service  (specialist machinery / professional consultancy)
  • Recurring revenues (ongoing monthly subscription model  - mobile phone contracts)
  • Low-churn customer base (longer ‘lifetime’ value – outsourced payroll services)
  • Requirement for ancillary services (set up, training, support contracts - IT sector)
  • An atypically high closure rate of appointments to closed business (e.g. where uptake is  driven by legislation)

So, you can now make a meaningful stab at whether using the services of a b2b appointment setting specialist works for your business!

For more details give us a call on 01270 503000

Simon Millions
Head of Marketing