Telemarketing Return on Investment (ROI) Calculator
Benefits of Using a Telemarketing ROI Calculator:
Being able to find out the Return on investment (ROI) for your Telemarketing campaign is extremely important as it allows you to accurately report, and decide on the direction of future campaigns.
The most common use for this calculator is for businesses that already run telemarketing, telesales, or cold calling campaigns and want to quickly calculate the return on investment.
Another great use case for this calculator is to be able to forecast and test different variables for future or current campaigns. For examples if you’re considering a telemarketing, telesales or cold calling campaign, you can quickly forecast and test different outcomes.
The below calculator requires the following inputs:
- No. of contacts to be called
- Campaign cost ($)
- Contacts expected to pickup (%)
- Contacts expected to convert (%)
- Expected close rate (%)
- Average sale value ($)
To which it provides the following outcomes:
- Projected Response
- Projected Buyers
- Cost per contact
- Cost per response
- Cost per buyer
- ROI (Return on investment)
- Projected Sales
If you haven’t run a telemarketing, telesales, or cold calling campaign before, we’ve listed some great averages or starting figures for you to test on the calculator. Note these figures drastically change dependant on:
- Market apetite
Some averages from our previous campaigns and general industry knowledge:
- No. of contacts to be called: A normal starting point is around 1000 contacts.
- Campaign cost ($): Usually around $4,000 – $10,000 for a local (Australian) telemarketing, telesales or cold calling campaign for 1000 contacts.
- Contacts expected to pickup (%): Usually around 80% (Really depends on the list, recency)
- Contacts expected to convert (%): Usually around 10%
- Expected close rate (%): This is very dependent on your business, you should know these figures. i.e what percentage of the leads you generate go on to BUY? 5% is a fair test value.
- Average sale value ($): This is very dependent on your business, you should know this figure. i.e what is the average cost of the orders you full-fill or the average contract value for the sales you make.
Not sure if a Telemarking, telesales, or cold calling campaign is right for you?
We’ve got just the article for you, where we’ve outline why a tele campaign is still relevant even (If not more important than ever) in the digital age we live in. Check out our article: “What is Telemarketing and why it’s still important in the Digital world”
What is Telemarketing?
Google defines telemarketing as the marketing of goods or services by means of telephone calls, to potential customers. However, the term Telemarketing is commonly used to represent Telesales, appointment setting and any related cold calling activities. There is however a large difference, the names suggest the intentions of the activity.
We’ve clarified these below:
– Telemarketing is an informative, awareness based activity. i.e calling people and notifying them that their local petrol station is now closed.
– Telesales focuses on selling from phone based conversations. i.e calling people with the objective to sell them a service or product during the call.
– Appointment setting focuses on setting appointments between businesses and their prospects. i.e A software company using our (Or any other appointment setter, internal or external) to call and book appointments with prospects on behalf of the sales team.
Why should I use an ROI Calculator?
A return on investment (ROI) calculator is a great tool to help forecast and determine the results from a telemarketing, telesales, or any cold calling campaign. Using an ROI calculator also allows your to model different scenarios, for example an increase in conversion rate or decrease in cost.
When should I engage a telemarketing company?
It’s best to engage a cold calling or telemarketing company once you feel as though they could add value to your business operations. Usually a telemarketing, telesales, or cold calling company can directly impact sales, so this can be an important addition to any business looking to grow.