What’s Your Contact Database Worth?

Are you marketing to your Salesforce Contact database?  If not, you’re not alone. Many sales and marketing operations are very “lead centric” in their pipeline creation activities.  But the value of your Contacts in salesforce.com can be very high.

How high?  Let’s explore this.

Let’s say you have 25,000 Contacts in your database and a typical lead conversion rate of .1% from Response to Closed Deal. Most months you run 2 Campaigns and your average deal size is $10,000 and total sales cycle is 3 months.

Here’s an estimate of what you might be missing by only marketing to Leads:

25,000               Contacts

0.01                   Campaign response rate

0.01                   Conversion rate from response to closed deal

24                       Number of programs

0.75                   1 year minus total sales cycle length

$10,000            Average sized sale

$450,000      in 2013 if you start January 1, 2013

 

So according to this set of stats, you might have an opportunity to generate another 4.5 million in revenue by marketing to the Contact database.

If you are a Salesforce Marketing user, go ahead and try the calculation on your data and see what you might be missing.

Bonnie Crater

About Bonnie Crater

Bonnie is a 5-time VP of Marketing at Genesys, Netscape, Oracle (Network Computer Inc.), Stratify, and VoiceObjects. While valuing the creative side of marketing, Bonnie's real love is marketing operations -- measuring marketing investments and determining investment optimization. Now as CEO of Full Circle Insights, Bonnie is working to help fellow marketers get the data needed to succeed. In 2000, Bonnie was named one of the “Top 20 Female Executives in Silicon Valley” by San Jose Magazine. Bonnie holds a B.A. in biology from Princeton University.