The following was taken directly from an email I received after booking a meeting last week. I had asked the prospect as part of my handoff/intro: “To make sure you walk away feeling like our time together was valuable, what problems can we focus on solving that matter to you?” The response caught me off guard a bit, not going to lie.
Copy and pasted from their email to me:
“Tiffany, thank you for asking me that but candidly up until coming across Abstrakt, I never knew technology like this even existed. What I need to walk away with is an understanding of how to measure the ROI of call coaching software. We are using revenue intelligence today (our CFO thinks we are overpaying for fancy dashboards), and we have no idea how to measure the ROI of that. Can you make sure we cover this during our meeting?”
This got me thinking, how does one measure the ROI of a dashboard or report? This is probably why everyday we talk with leaders who are hungry for something different. Hungry to be able to measure the impact of a tool like revenue intelligence, but ultimately are left unsatisfied. Here at Abstrakt, it’s actually really easy to measure the ROI of real-time call coaching software.
Here’s how to measure the ROI of Call Coaching Software
- You gotta know your baselines conversion metrics. Because I am a SDR, and SDRs run the world, I am going to focus on this role. Pretty standard stuff, but you need to know your following KPIs: Connect rate, connect to positive conversion rate, top 3 reasons (and how often) connections fail to convert, and of what converts into a meeting, what is deemed qualified? Go get all that data, and then proceed to number two.
- It’s pretty hard to impact the connection rate, usually it falls around the seven to ten percent mark at most companies for outbound SDRs. That means, for our areas of focus to measure improvement we could very well only be talking about seven to ten calls a day. With such small numbers, every single chance of success moves the needle. So we are going to focus on Connection to positive conversion first. Proceed.
- Now, let us dive into the top 3 reasons connections fail to convert. If you are like me, you see the same three over and over again. Some variations of “I don’t have time”, then the typical “well we are already using (insert revenue intelligence competitor)” and the famous “we don’t have any budget”. Sounds about right? Maybe your SDRs face one of those three on fifty percent of their calls (might be 3-5 calls per day).
- Maybe you nail three out of the five objections you face, and completely drop the ball on the other two. Let’s just say one out of those two you are able to overcome using real-time call coaching software. That is one extra meeting a day, five extra meetings a week, twenty extra a month. Because I use Frameworks, my qualification skills are off the charts (yes, I am bragging), but 80% of my meetings turned into Qualified opps.
- 16 Qualified opportunities per month are being added to our pipeline as a result of my one extra successful conversion per day.
- Our close rate on Qualified opps is 38%. That’s six new customers over the next 71 days (our average sales cycle) as a result of my one extra meeting per day.
- Now the fun part. Measuring the ROI. Now, because I work at Abstrakt I don’t have to pay for a license (we eat our own dog food) of our real-time call coaching software. If I did though, it would be $100/month or $1,200 per year.
- Let’s take six deals, times four quarters and that would equal 24 new deals at an ACV of $10,800.
- $259,200 in first year revenue on a software spend of $1,200.
Mic drop and walk away
This is math my CFO can get behind. This is math your CFO can get behind. This is the ROI that traditional (reactive) revenue intelligence cannot deliver because it is NOT able to attribute key actions, live on a call, to win rates that have been improved by the software itself.