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Telemarketing Campaign ROI - Breakeven Calculator (Known Contact Universe)
This tool will calculate the breakeven and ROI for an outbound telemarketing campaign based knowing the exact size the potential audience that you will be contacting during this campaign. The “known universe” or “# of total contacts for the campaign” is the key variable. By changing the other campaign assumptions, you can conduct “what-if” analysis scenarios to optimize your plan. Changing audience size (# of total contacts) for the campaign will significantly affect the projected results.
Instructions for using this calculator can be found above the calculator. Definitions of terms used can be found below the calculator.
Definitions (Click to Open)
Campaign Setup Charges – these are the charges that the teleservices firm or telemarketing department within your organization charges you for setting up the database and support services for the campaign as well as any charges for setting up calling scripts and training programs for the telemarketers who will be making the outbound calls.
Calling Charges Per Hour – are the charges that the teleservices firm charges you for making the outbound calls to prospects. It would include some portion of the telemarketer’s salary, as well as telephone line support and usage charges.
Contacts Per Hour – are the actual number of completed calls with prospects that the telemarketer is able to make in an hour. It means the telemarketer actually spoke to the prospect.
# of Contacts Needed to Generate a Qualified Lead – this is the number of completed calls that a telemarketer needs to make in order to generate one prospect who is interested, needs, and has the other qualifications for buying your product/solution.
# of Sales Required – this is the number of sales you expect to generate for this campaign.
Initial Response Rate of Contacts to Leads - this is the initial response rate to the outbound calls...people who respond. Enter your response rate as a whole number plus decimal (e.g., 1.25% as 1.25, .005% as .05).
Conversion Rate of Qualified Leads to Buyers – this is the percentage of qualified prospects who will actually convert and buy your product/solution. This number varies by industry and offer, so base this number on your own experiences or similar experiences of similar businesses in your industry. Enter this percentage as either a whole number (e.g., 25% as 25).
Average Transaction Value – this is the total amount of the sale and usually includes the cost of the product and any bundled services.
Gross Margin % for Average Transaction – is the gross profit percent of the transaction derived by subtracting all associated costs from the total sale, then dividing the gross profit (the remaining value) by the total selling price paid by the buyer. Enter this percentage as a whole number (e.g., 25% as 25).
Cost of Fulfillment Kits – you may or may not use a fulfillment kit as a follow up to an outbound call to a prospect that expresses interest in your offer. But, if you do this would include the costs of any collateral, free materials, and postage of sending the package to the prospect. In today’s world that fulfillment might be done online, so the cost would exclude postage but include all costs associated with electronic delivery.
# of Follow Up Calls to Qualified Leads Per Hour – this number is usually much lower than the number of initial calls made to establish contact with leads. This type of call usually involves a telesales person, with far more knowledge about the product/solution and can deal with the prospects questions and objections if they have any. In some cases, if the product/solution is actually sold over the phone, they may actually do the sale closings.
Calling Charges Per Hour for Follow Up Calls – These charges are usually higher than the initial outbound calling charges, because the calls are typically longer and require more knowledgeable telesales personnel.
Instructions (Click to Open)
Use the "Known Universe" calculator if the size of the campaign universe is a fixed size and you know how large it is, for example your mailing list is 45,000 names. In the “Known Universe” calculator, the known universe or “# of total contacts for the campaign” is the key variable. By changing the other campaign assumptions, you can conduct “what-if” analysis scenarios to optimize your plan. Changing audience size (# of total contacts) for the campaign will significantly affect the projected results.
Enter your campaign costs and other assumptions in variables sections. The results will be calculated as you enter your assumptions and will appear in the Results Section.
This financial calculator will work for both “1-step” and “2-step” for either B2B or B2C telemarketing campaigns. A “2-step” campaign involves sending out some sort of fulfillment package to leads to further qualify them and enhance the likelihood of them making a purchase. The “2-step” campaign also involves following up delivery of the fulfillment kit with an additional outbound call to do further qualification and nurturing of the prospect/customer who responded the initial offer and requested the fulfillment kit. If you are only running a “1-step” campaign, leave the assumptions for the “2-step” portion of the campaign blank, or enter zeros. For further explanation and definitions of terms you may not be familiar with, click on the tab labeled "Definitions & Explanations."
Enter all percentages as whole numbers and decimals (i.e., enter 50% as 50 or 1.25% as 1.25).
To enter a value in any cell, click in the cell and you can use the number keypad to enter a number. To move to the next cell, click on the NEXT button in the keypad that appears. To reset this calculator to the initial zero values, click on the RESET button at the top of the calculator. You can open and close the individual panels as you enter values or leave them open to more easily conduct "what-if" analysis.
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