Written by Sean McPheat |
15 August, 2011
The first part of this article, “Do you suffer from Phone Phobia,” explained how phone phobia is much more than the simple fear of making calls. It has to do with the misplaced high-level of importance sales people place on the value of the call. To eliminate phone phobia, you must determine and understand the true value of a single telephone call.
What is the True Value of a Telephone Call?
Use the following formula to help you determine the value of a telephone call in your business. Note that you must base all of the information below on actual sales activity.
For instance, assume a sales person earns £400 every time she closes a sale. She has a 20% closing average and a 5% appointment setting average.
£400 = average earned sales commission
20% (1 out of 5) = closing average
5% (1 out of 20) = appointment closing average.
Do the Math
Our hypothetical sales person earns £400 for every sale; however, it takes her five attempts or appointments to close that sale. Therefore, each appointment is essentially worth £80 (£400/5).
Since it takes her 20 telephone dials to set that appointment, each dial is essentially worth £4 (£80/20).
What is at Risk?
Each call the sales person makes is worth a mere £4 not £400, and certainly not her whole career. But let’s take this a step further. The call is worth only £4, however that is not what the sales person pays or looses per dial—it is what she earns!
Our sales person risks nothing when making calls.
You risk nothing when making calls. Instead, you actually earn some amount of money every time you dial the telephone, regardless of the outcome!
Figure out the exact value of a telephone call in your business. Then keep that figure in mind as you dial the telephone like a slot machine that pays off every single time!