Article 101

MUST DO MATH FOR APPOINTMENT SETTING: To have even a chance of
sales success, these numbers must make sense.

Word count: 487
Time to read: 2 1/4
Benefit to you: Find out whether you are guaranteed failure
and frustration before you call.

How can you greatly increase the odds that your appointment setting efforts will result in the closed accounts necessary to reach your sales goals?

Well, you start by sharpening your pencil, making some reasonable assumptions and determining if you have even a chance that your prospecting efforts will be fruitful.

SUSPECTS CALLED TO APPOINTMENTS SET RATIO
From experience across many industries, I can tell you that you can expect an appointment with between 9% and 13% of reasonably qualified suspects called. Let's keep it simple and say you can expect 10 appointments for every 100 suspects called.

APPOINTMENT TO CLOSED ACCOUNT RATIO
How many new first appointments do you need to close an account? If you are calling people cold, a ratio of 5/1 is reasonable. If you are less experienced, than an 8/1 or 10/1 maximum ratio might be a reasonable assumption. If your ratio is greater than 10/1 then something needs significant adjustment.

AVERAGE ACCOUNT SIZE
Very simply, what is your average new account worth?

THE FUN BEGINS
Now start to play "what if?" To generate X volume of sales per month, I need to close Y accounts, which means I need at least AA number of appointments, which means I need to call BB number of new suspects every month.

If the math makes sense, you now know how many people you need to call, at what pace, with an acceptable appointment setting success rate and closing ratio.

If the numbers don't make sense, these are common scenarios.

IF YOUR SUSPECTS CALLED TO APPOINTMENTS SET RATIO is much more than 10/1, then you need to focus on your calling efficiency and effectiveness. You are probably working with a paper system or calling haphazardly, and almost always calling the wrong target group.

IF YOUR APPOINTMENT TO CLOSED ACCOUNT RATIO isn't in the 5/1 or 8/1
range, than you need to tighten up your first meeting skills and probably need to re-evaluate how you are communicating value (it always comes down to perceived value), and executing the multiple touches necessary to manage a pipeline.

IF YOUR AVERAGE ACCOUNT SIZE IS TOO LOW it is always because you are calling too many of the wrong targets. Go back and evaluate the industries and size of companies you are calling on and you will probably find that you are calling on too many companies that cannot reasonably be expected to buy at levels necessary for you to justify the prospecting effort.

Doing the prospecting math before you call tells you whether you even have a chance of success, and where you need to make adjustments to reach your sales goals.

Best wishes with your sales and marketing,
Scott Channell

copyright 2005 - 2009 scott channell

Article 34	Must do math for appointment setting
	by Scott Channell