Are you a sales rep unsure of where you stand? Do you want to make a successful funnel but just aren’t sure how? Because if so, we can help.
Being a sales rep can be quite stressful. This is especially true when you want to do a good job but are unable to track your success. It is one of the few jobs where you can’t know exactly where your competition stands and how you compare. Getting those numbers is next to impossible, so it’s common to be in the dark about your progress.
A sales rep’s job is based on research and knowledge and using it to optimize your funnel in the best way. So, not having accurate numbers can be tedious. However, there is a solution.
While there are no exact statistics, there is a general bottom line that you should be reaching. Each step of the funnel has goals, and if you can reach them, you’re good to go. Let’s get into it.
What to look for when cold emailing
To put it simply, you need to keep a tab on three things. These are:
- Open rate
- Response rate
- Conversion rate
The open rate is straightforward. It’s how many people open your email. On the other hand, the response rate counts the people who respond to your email. And lastly, conversion rate measures the people who follow your instructions. The instructions can be anything from subscribing to a newsletter to buying a product.
If you can’t measure and track all three, there is a huge problem with your funnel. Before anything else, you will need to set up a working model that tracks the three metrics. This is important because you can’t fix a problem unless you know it exists.
After setting up a tracker, you can work towards meeting the following goals.
Open Rate – 30%
Your opening rate needs to be at least 30%. Anything below will make the rest of your sales pitch super challenging. If you’re not meeting this target, you can improve it. Work on your email subject, send them out at different times and try optimizing your audience. Each of these actions can help you get more people to open your email.
Response Rate – 50%
You don’t just need people to open your email; you also need them to respond. This interaction is necessary to get potential customers interested in your product. And that is the first step to making a sale. Ideally, you want to hit 50%.
If you’re below 30%, there is something fundamentally wrong with your email’s body. And no matter how much your outreach increases, this issue will persist. In such a situation, you’ll need to deal with the issue head-on. And one of the easiest ways to do so is by analyzing your pitch. Is it short and sweet, or is it long and tedious?
But if that isn’t the issue, look into the audience and if you’re reaching out to your target audience. Also, make sure the message is clear. The reader should know what the next step is.
Conversion Rate – 50%
At this point, you want to make sure you are only dealing with interested customers. And at a minimum, 50% of them should be making purchases. If you’re going above this number, great job! However, if you’re falling short, you need to make changes.
What to look for in cold calling
But beyond these three basic rates, you also need to look at the following:
- Reach rate
- Qualify rate
- Conversion rate
Reach rate defines the number of times you reach your target audience. Qualify rate is the number of people that qualify once you speak to them. And conversion rate counts the number of leads that take the action you want them to.
It’s essential that you have the capability to track all three.
Reach rate – 30%
When cold calling, you should reach at least 30% of the people you call. An inability to do so means your campaign is a failure and needs significant restructuring. Ideally, you should see a number close to 40-50%. This is an essential part of the funnel, and without it, you have nothing. Therefore, getting this number as high as possible should be a priority.
Qualify rate: 50%
Among the people you reach, at least 50% should qualify. While this may sound like a big target, it shouldn’t be an issue if you do your research right. If you aren’t meeting this goal, you’ll be wasting time, money, and energy.
Conversion rate – 50%
If you’re doing the work right, at least half the people who qualify will do whatever it is you’re asking them to do. If you’re unable to do so, there are quite a few ways to improve. Starting with your pitch to the research you do before calling potential customers, there are numerous ways to boost your conversion rate.
Meeting the three benchmarks for cold calling and cold emailing is just the start, though. Every business is different, and so has different needs. This means there isn’t a perfect formula. However, these benchmarks are great starting points and work for most businesses.
It is important to note that they are minimum percentages. And if you are hitting them, it isn’t a cause for celebration. Instead, it just means you’re doing the funnel right. Always try to go above and beyond these numbers.
On the other hand, if you aren’t hitting them, you might need to rebuild your funnel. In cases where you’re only slightly off, focus on slowly growing and improving your numbers. Only rebuild if you’re wildly off target.
Sales are one of those departments where there is always room for improvement. You’re never achieving your full potential, and any sales teams that are satisfied are mediocre. Great sales teams will constantly look for ways to improve and grow. If you’re hitting 50%, that’s great! But if you stop working as soon as you do, you’ll never be the best. And your competition will take your spot. So, work hard and reach for the stars!