How The Cold Calling Calculator Works
Cold Calling SDRs
This is the amount of full-time sales development reps that you have dedicated to cold calling. These sales reps call 6-8 hours per day and have a dedicated role as cold calling sales professionals. The sales reps are managed by a sales statistics team tasked with reviewing activities, recording calls, and monitoring web log ins.
Cold Calls Per Full-Time Rep Per Day
The average successful cold call per full-time cold calling SDR is 400 calls per day. This metric can vary depending on how your list quality, answer rates and how talkative your calling prospects are. Some business buyers are happy to have a 10 min conversation with a complete stranger and some people just want to get off the phone as quickly as possible.
Avg Working Days Per Month
For the point of this calculator, we use an average of 21 working days per month, which also account for the 10 federal holidays per year.
Cold Calls Per Month
It really is important to zoom out and look at ROI from a monthly perspective, so we take the average calls per day and extrapolate the average monthly dials per sales rep by multiplying it by the average working days per month.
Cold Calls Per Month = Cold Calling SDRs * Cold Calls Per Full-Time Rep Per Day * Avg Working Days Per Month
Avg Cold Call Conversation Rate
For the purpose of this ROI calculator we set this to a constant of 4.0%, which is a bit lower than the average of 4.5% but we prefer to be a bit more conservative when projecting ROI. This rate represents the percentage of conversations divided by the amount of phone calls.
It is important to look at this B2B cold calling statistics over at least a month long period so there is a large enough sample size to get an accurate number.
Formula: Call-to-Conversation Rate = Conversations Per Month / Calls Per Month
Conversations Per Month
This metric is found by multiplying the number of cold calls per month times the average call to conversation rate. This represents the amount of people the sales rep cold called on the phone in a month.
Formula: Conversations Per Month = Cold Calls Per Month * Avg Call-to-Conversation Rate
Avg Conversation-to-Meeting Rate
This metric represents how many buyers accept meetings or how many cold calls ultimately lead to meetings. This success rate can vary greatly depending on the quality of the sales pitch and the persuasiveness of the cold caller. For this number we use a constant of 4% which is a conservative average of B2B sales prospecting meetings results.
Meetings Per Month
This is the estimated number of sales meetings set by the cold calling sales representatives. To calculate this we simply took the number of monthly conversations and multiplied it by the average conversion-to-meeting rate.
Formula: Meetings Per Month = Conversations Per Month * Avg Conversation-to-Meeting Rate
Closed Won Rate (Varies By Company)
This is the number of closed won deals from cold calling / by the total number of meetings set from cold calling reps. Generally speaking, it is important to factor in no shows, even if the buyers accept meetings during the cold calls or follow up call, and unqualified calls made during the outreach efforts.
Closed Won Deals Per Month
This is where the selling process and buying process happens! Enough said. This metric is found by multiplying the number of meetings by the Closed Won Rate.
Formula: Closed Won Deals Per Month = Meetings Per Month * Closed Won Rate
Avg Contract Value (Varies By Company)
This input varies on your product and client lifetime. Typically we recommend to take your average client lifetime value, but other managers prefer to put their monthly recurring revenue.
Won Contract Value Per Month
This is the expected amount of future revenue from a given month of cold calling. It is calculated by multiplying the amount of Closed Won Deals Per Month by the Average Contract Value.
Cold Calling Cost Per Month
$5000 for first half-time caller, then $4500 / half-time caller after that.
Cold Calling ROI
Cold Calling ROI = (Won Contract Value Per Month – Cold Calling Cost Per Month) / Cold Calling Cost Per Month.