Wonder how to use cold emailing to ensure stable lead generation and guarantee predictable revenue? You can set up a realistic plan and visualize the whole process by using this free Potential Revenue Simulator.
The Potential Revenue Simulator is a tool which enables lead generation planners to estimate and predict responses and revenue from cold emailing, as well as time frame and scale of outreach needed for achieving certain performance goals.
It allows predicting the results of your cold emailing campaigns in a long-term perspective.
Whom is this tool for?
All lead generation planners, sales and marketing professionals, founders who decide on marketing/lead generation strategy, working in companies of any size.
Why is long-term planning crucial in cold emailing?
Cold emailing is one of the fastest tactics for reaching a target audience. This fact usually creates an illusion that cold emailing brings fast ROI too. When, in fact, it might take longer than you’ve expected.
If you plan to start closing deals in a month or two after sending cold emails out, you might end up getting disappointed with no results and cut off cold emailing from your strategy. But making this decision too fast will probably block your marketing from ever bringing predictable results.
So be sure you distinguish these two things and estimate the cold emailing performance properly:
1) getting in touch with prospects via cold emails is rather fast. From our practice, replies can come the same day – the soonest, or within 1-2 months (after sending 4-7 follow-ups) – the latest.
2) getting ROI from cold emailing can be expected within your average closing time after you get in touch with your leads. To estimate it you should have a long-term plan for your cold emailing campaign.
The Potential Revenue Tool helps visualize the effect of your cold emailing efforts in long-term perspective. For example, with an average closing time of 3 months, you can expect to close first deals during the fourth month after sending the first bunch of cold emails (see the image below).
Without a long-term perspective on your cold emailing efforts, you might be tempted to cut your marketing budget after the first month. But by doing so you actually deprive your business of getting any results after the fourth month:
To estimate the effectiveness of the future cold emailing campaign and how long it might take to get the results, you need to think beyond monthly costs and income. This Potential Revenue Simulator uses several variables for it:
1) Closing time
How long does it take to close a deal in your company? Meaning the time frame between your first contact with a potential client till the moment you sign a deal with him. This number varies and greatly depends on the business specifics, your offer, price range, your target audience.
2) Closed deal value
Think how much your company gains from a single deal with different types of clients. This helps predict the potential revenue, as well as gives an idea whom it’s better to target.
3) Closing rate
What’s the chance to close the deal? How many leads of yours get closed?
4) Number of intro emails sent monthly
You can play with this number to see how many emails are needed to be sent to achieve a certain revenue goal.
What exactly does the RightHello Revenue Simulator show?
With this tool you can:
- Estimate if this tactic is worth the investment before actually trying it
- Combine all your cold emailing metrics to see the long-term picture – how they can influence your revenue growth
- Estimate a time frame needed to achieve stable lead generation flow and predictable sales
- Calculate the potential revenue from cold emailing
- Estimate how many emails should be sent and within which period of time in order to reach the desirable revenue growth
- Estimate the number of leads that you need to have in the pipeline for each sales goals at the beginning of a sales cycle in order to achieve the desired revenue for the specified period
Where to get variables needed for it?
Metrics needed to run the Potential Revenue Tool you can easily export from your CRM if you run it properly. If you don’t use it – take a look at your latest top 5-10 clients and try to measure needed metrics based on their examples.
In case of any difficulties or question about it, you can consult with our specialists.
Please, keep in mind that the estimation that you get from this tool is a simulation. Final results (the number of leads and the revenue) always depend on many factors, including but not limiting to:
- Consistency and quality of cold emailing campaign performance
- Your website (how well optimized it is)
- Brand reputation
- Product/Market Fit
- Sales process (quick responses, converting leads to calls, dedicated salesperson, customer service)
- Your portfolio, testimonials and referrals
- Individual approach to clients
- Your overall engagement
- Offer and pricing