KPIs are widely used in an attempt to measure a company’s success. The revenue per successful call is utilized for the same purpose: to assess the revenue generated by a sales call. This metric is also known as the net income per successful call. And it enables teams to observe what makes a successful phone call, and the amount of money it has the potential to generate.
It makes sense to monitor the average amount of money that originates from successful calls, in order to assess the monetary value of the calls. Most managers and marketers utilize this KPI in conjunction with the total cost per call, to offer insight regarding the link between the sales effort and the revenue facilitated.
The formula used for this metric is easy: the amount of revenue generated from all the sales/number of calls. In terms of the reporting frequency, most managers calculate the revenue per successful call monthly. Additionally, as an example of revenue per successful call target, experts agree that a $121.48 per successful call is to be desired. Still, this doesn’t mean you should exclude other factors that are specific to your industry.
We could argue that the revenue per successful call indirectly measures the performance of the sales team. In regard to the performance level of the sales team, numerous strategies could be implemented which may or may not be effective for your industry. This is what makes it primordial to keep trying out new strategies.
For example, among the methods which have been demonstrated to work, worth mentioning are networking, cold calling, advertising, and marketing – of course.
In this given context, the revenue per successful call metric expresses the sales department’s capability of turning leads into customer sales – which is a key aspect in each business, irrespective of industry or expertise. Expressly, this metric mirrors the profitability and efficacy of a given firm.
The company’s capacity of performing cross-sales and up-sales could be another crucial indicator regarding this issue. It is implied that the performance of this KPI is imminently linked to pricing deductions and privileges, unique promotions and special offers.
Another helpful approach that might is likely to be efficient in any industry is implementing promotions, discounts, cross-sells and up-sells. Evidently, having an efficient and practical sales environment is just as critical as implementing a sales strategy that will bring you the desired results.
On a different note, there is a connection between service leads – representing the calls answered per 60 seconds, and the revenue per successful call. You can aim at calculating the potential financial return you might benefit from after investing in additional sales agents. This knowledge allows you to make comparisons regarding past and present performances. Nonetheless, each company might benefit from a different approach, which is why we cannot make any generalizations in this area.
To that end, make sure you factor in other KPIs when assessing your firm’s performance, to get an overview of where you’re standing, performance wise.