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Cold Calling Conversion Rate Calculator

Check out 6 cold calling conversion rate formula metrics you should measure! Cold Calling Conversion Rate Calculator included.

Use this cold calling conversion rate calculator to measure the return on investment (ROI) of your sales team cold calls.

In sales, any strategy that your company adopts must be measured to guarantee your team is on the right track. You can use a conversion rate formula.

And when it comes to SDRs, there are plenty of metrics within that conversion rate formula you should keep an eye on to detect what’s wrong and how to improve it.

Read on to learn 6 metrics (including ROI) that you should measure for your cold calls, as well as more information on how this conversion rate calculator works better than even email when prospecting potential clients!

SalesHive Cold Calling Conversion Rate Calculator

Cold Calling Conversion Rate Formula Metrics

There are many metrics that you should consider when evaluating the efficiency of your cold calling strategy.

Presumably, the most important of all (the bottom line, even) is the return on investment (ROI) of your cold calling efforts.

This measures if your investment in cold calling is actually turning into a profit for your business by gauging the value earned by contracts with the costs of cold calling.

The conversion rate formula for cold calling ROI is:

(Won contract value per month - Cold Calling cost per month) ÷ Cold Calling Cost per month

Let’s say for example you spend $10,000 monthly on cold calling and you gain 3 contracts of $15,000 with clients.

The calculation would be: (45,000 - 10.000) ÷ 10,000 -> 35,000 ÷ 10,000 -> 3.5%

In this example, your cold calling ROI would be 3,5%.

If you think calculating this manually is complicated, check out our cold calling calculator!

5 Cold Calling Conversion Rate Formula Metrics You Should Measure

Conversions, averages, meetings per month…

There are many metrics you should track monthly to see if your cold calling efforts are really working.

Metrics help you know where there are issues and how to solve them. Instead of using them to “bully” SDRs into performing better, use these metrics as a tool to guide them towards success.

Check out 5 formulas below:

#1 Monthly cold calling conversion rate calculator

Contracts sold ÷ cold calls per month

Example: Your cold caller made 8000 calls and sold 200 contracts. The conversation rate would be 2.5%.

#2 Average call-to-conversation rate formula

Conversations per month ÷ calls per month

Example: Your SDR made 8000 calls, 500 of which turned into conversations. The average call-to-conversation rate would be 6.25%.

#3 Average conversation-to-meeting rate formula

Meetings per month ÷ conversations per month

Example: Your cold caller arranges 20 meetings from 500 conversations. The average conversation-to-meeting rate would be 4%.

#4 Closed Won rate conversion rate formula

Closed deals from cold calling ÷ number of meetings

Example: Your SDR closed 2 deals from 20 meetings. The closed won rate would be 20%.

#5 Won contract value per month

Closed won deals per month x average contract value

Example: Your cold caller closed 2 deals and the average contract value is $15,000. The won contract value per month would be $30,000.

More Cold Calling metrics

Want to find out more ways to measure the success of your cold calling specialists? Check out more metrics here.

Is Cold Calling Effective?

Cold calling is an overlooked prospecting strategy for gaining clients.

And why is it overlooked? Well, that’s because of the bad reputation cold calling has from ill-intended telemarketing firms that call people without discretion and pester them into buying goods or services.

But cold calling doesn’t have to be like that. In fact, that’s the incorrect way to execute it and won’t boost your sales.

Effective cold calling is targeted and backed up by research. It’s when you call somebody qualified for the purchase and a fit for your services.

In other words, instead of cold calling your average joe, you’ll be calling the higher-ups of firms like Ford, Sephora, and Freddie Mac.

Also, cold calling needs data to work. Along with the metrics above, you need to perform tests and survey your customer base.

Effective scripts

Unstrategic cold calling is usually done without a script — or worse — it’s always the same outdated script. Ever received 2 precisely exact calls from the same company?

Meanwhile, effective cold calling uses A/B testing on scripts to see which one provides the best conversion rate. And it isn’t subjective: it’s cold data on what words are making your potential clients stay on the phone.

Qualification of inbound website leads

It’s the norm at many companies to send an email to a lead as soon as they sign up for a newsletter or ask for a quote.

A quick cold call is effective to determine which leads are qualified for your service. And those who aren’t, you can forget about them — focus your calls on those who are.

Customer surveys

To improve your cold calling strategy, you need data on your potential clients. And one of the best ways of doing that is surveying your current clients.

Ask them about the problems they face and how your service can solve these issues. A solution-based approach is usually effective in cold calling.

Is Cold Calling Dead?

Although many marketers will make you believe phone calls in the digital age are a thing of the past, it still is one of the most effective outbound channels for sales.

In fact, 32% of SDR teams consider cold calling to be their most effective channel. More than email, social media, or direct mail.

So why do people believe it’s dead? That’s because they associate cold calling with telemarketing and the disgust most people (especially gen z and millennials) have of this approach.

But as we mentioned earlier, cold calling is an effective way to reach out to qualified clients without annoying them. But it takes research and training to do so.

Instead of spending time and money training your own sales team in cold calling, hire our experienced specialists. When you sign up for our service, we select an exclusive SDR just for you.

That means a qualified professional that can make up to 400 calls daily for your business.

Contact us to learn more

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Explore The SalesHive Cold Calling Guide

Each part of our cold calling guide is equally important and needs to be mastered.

Part 1: Sales ROI Calculator for B2B Cold Calling

Before you can improve your cold calling efforts, it’s important to benchmark the ROI of your existing cold calling efforts. We’ve created a handy calculator that you can use to figure out where you currently stand and then you’ll learn about industry-tested methods to boost your KPIs.

A single SDR working full time can make 8,400 cold calls per month which will result in about 432 conversions per month. More conversations lead to more meetings per month, and more meetings will increase the number of closed deals per month.

View Part 1

Part 2: How To Write A B2B Cold Call Script That Works

Cold calling is far from dead– many businesses use cold calling in some capacity, though the intention is certainly different from what it was back in the day.

Originally, cold calling was solely a sales technique that had a whopping 2% success rate and annoyed an entire generation of consumers. Now, many would think that cold calling is dead, but that’s not the case. It has simply evolved in both technique and purpose. Rather than aggressively trying to close a sale in a ten-minute phone conversation, today’s brands can use cold calling to get to know consumers who are not aware of their brand.
View Part 2

Part 3: How To Communicate With Prospects On The Phone

A core attribution to a business’s success is to be financially strategic, in other words, if they already have a system going there may be some friction with talking them into trying something new. You are providing something these people need, resistance is typically caused by natural tendencies to stick with what you know.

It’s going to be very common that you are going to be experiencing a fair share of objections. Objections are not NO’s.
If you get an objection- they haven’t hung up on you yet, so they’re still listening and hoping for you to overcome!
View Part 3
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