Attaining ROI with Live Conversation Automation

ROIYou know you need more live conversations, but what is it worth?

As is the case when considering any new money saving solution, the return on investment you attain from a Live Conversation Automation solution is an imperative step when deciding whether or not to move forward. You know in your gut that a dramatic increase in live conversations with customers and prospects will pay off for your company. The challenge is determining how much value it will bring and whether it is worth it for your company to spend the dollars, cost and effort required for deploying any new solution. Outlined below are some of the top reasons ConnectLeader’s customers tell us how they have attained ROI with Team Dialer.

1.     Pipeline/Revenue Growth

If you are like most of ConnectLeader’s customers, you’re frustrated with the amount of live conversations your sales and business development people have with actual customers and prospects on a daily basis. Despite the fact that your people are working hard, they spend most of their time navigating dial-by-name directories and talking with receptionists, instead of the people who can buy or influence a decision for your product. Business Development reps manually making only 80-100 calls per day is a poor use of valuable sales talent. Team Dialer is phone dialer technology integrated into a company’s CRM system which addresses this issue by dramatically increasing live conversations, maximizing business value from your team. Using Team Dialer, our customers typically double the amount of live conversations they have each day by using it just 1 hour per day! Let’s dig into the details.

The first step in figuring out your potential upside is to identify your baseline activity using the simple calculation below.

(net new live conversations) x (% conversations to new opportunities) x (close ratio) x (avg. deal size)

Many companies include more details, such as measuring the number of calls, meetings, demos and team size into the equation. This illustrates how live conversations fit into the new business acquisition processes. The calculations vary depending upon whether a weekly, monthly or annual period is preferred, but the concept is the same. Displayed in the chart below is a five person team, dialling manually, averaging three new live conversations daily.

Manual Dialing – 5 Person Team

Average Live Conversations/Rep/Day

3

Per Month (Based on 20 Day Month)

60

Number of Reps

5

Total Live Conversations/Month/5 Person Team

300

Hit Rate: New Opportunity/Live Conversations (ratio)

10%

New Opportunities/Month

30

Close Ratio: Closed Opportunities/New Opportunities (ratio)

10%

New Closed Opportunities/Month

3

Average Deal Size

$ 30,000.00

Total Revenue/Month

$ 90,000.00

Let’s look at how well this team performs using Team Dialer 1 hour each per day, averaging 6 live conversations per hour.

With ConnectLeader Team Dialer – 5 Person Team

Additional Live Conversations/Rep/Day

6

Per Month (Based on 20 Day Month)

120

Number of Reps

5

Total Net New Live Conversations/Month/5 Person Team

600

Hit Rate: New Opportunity/Live Conversations (ratio)

10%

New Opportunities/Month

60

Close Ratio: Closed Opportunities/New Opportunities (ratio)

10%

New Closed Opportunities/Month

6

Average Deal Size

$ 30,000.00

Total Net New Revenue/Month

$ 180,000.00

 

The example above illustrates an additional $180,000.00 per month in closed business vs. manual dialing alone. Your mileage may vary, but empowering your talented and trained employees to talk with more prospects and customers is the value offered by Team Dialer.

2.     Reduce Staffing/Headcount Costs

While the numbers above may look impressive, you may argue that the lift in revenue is theoretical. You have to wait until the new opportunities run through what could be a very long sales cycle before the value can prove itself out. You also may ask yourself whether the large deal your team just closed came from ConnectLeader. Or, if it did come from ConnectLeader, would you have closed it anyway?

In this case, you may find it more helpful to look at the value of ConnectLeader in terms of how much it expands the bandwidth of your team. Our Team Dialer is a force multiplier that enables your team to accomplish the work of a larger team. This enables you to reap the benefits of a larger team without the additional costs (salary, training, benefits, staffing costs, etc.)

Below is an example of how the company referenced above can attain these staffing cost savings with Team Dialer.

Additional Live Conversations/Month

600

Current Live Conversations/Rep/Month (using Manual dialing)

60

ConnectLeader Headcount Equivalent (based on Additional Conversations/Month)

10 Reps

Monthly Cost/Rep

$ 6,000.00

Staffing Cost Savings/Month

$ 60,000.00

The company in the example above is getting the outbound calling productivity equivalent to a team of 15 reps with its existing team of 5 reps.

3.     Validate List Data

Team Dialer not only helps your team reach more prospects, grow pipeline and reduce staffing costs, it also helps you better validate/clean up your calling list data. Whether your company is purchasing list data from third party data  lead generation companies or driving leads organically through your marketing initiatives using lists purchased from third party data vendors, there is a cost associated with every contact in your CRM system. By dramatically multiplying your team’s ability to dial every lead or contact in your database, ConnectLeader gives you a more complete picture of what is good, what is bad in terms of list data, and how to clean up. This allows you to pinpoint your follow up efforts (and spending) on those activities and data sources that pay off. No more finger pointing that you didn’t call all of your leads either!

4.     Training/Talent Development

Team Dialer enables your team to get better at what they do by the increase in experience alone. Instead of getting good at talking with receptionists, your reps gain a wealth of valuable experience in a very short time talking with real decision-makers, many real decision-makers! In addition, Team Dialer’s Remote Coach and Call Recording features enable you to coach and develop your sales talent as they work with live customers and prospects. Just think of the greatest sports organizations of all time. You can bet that every one of them watched of lot of game film!

Okay, now we have established that Live Conversation Automation with Team Dialer brings a lot of value for your company ($180,000 per month based on the example company above). But, I’m sure you’re wondering what Team Dialer itself costs. Call us at 603-952-2500 and we’ll give you a quote. I assure you it’s nowhere near $180,000 per month!

BY: PAT MORRISSEY, SALES MANAGER