What’s Your Contact Database Worth?
- AUTHOR Bonnie Crater
- January 18, 2013
- No Comments
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:
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.