Return on investment for cold calling
ROI analysis can be an important marketing tool used for measurement of a sales campaign. Most business owners would not think of participating in a new sales project or campaign without it? While ROI analysis is a must for any business, ROI is often misused and misunderstood.
Don’ts for an ROI – A common example of ROI misuse is shown by the desire to perform the analysis several times changing the program here or there. This is particularly unrewarding when the results of the analysis do not influence the decision being made.
Is this sales campaign working for me? Do I have the network of people I need to make this a true success? The issue here is that managers may have in mind a particular sales number and aren’t communicating this information or don’t know exactly what they’re looking for until they see it.
ROI Do’s 1. Be clear on what you are trying to determine.
2. Use ROI as a tool for calculation of future business and finances.
3. Understand ROI is an estimate.
ROI Don’ts 1. Fixate on the number. Ten percent, twenty five percent or break even is meaningless if you don’t understand what the key variables are that get you there.
2. Use ROI as the end-all and be-all of analysis. ROI is not the primary tool for continuing a proposed sales project.
3. Use ROI for independent projects when the project fits into a larger plan.
If done with an understanding of its strengths and weaknesses, ROI can be a powerful learning tool when calculating the success of any sales campaign.