One of our clients asked us to show them how Convirza can affect their bottom line. So we turned on Conversation Analytics for them, and analyzed their calls for about 3 weeks. They liked what we found. We think you will too.
This particular client produces ceramic tiles for residential and commercial projects, and their average transaction size is roughly $3000. They sell their products through dealers across the country. Over the 3 weeks, we analyzed just under 600 calls – 593 to be exact – that came in to 53 of their dealers. Here’s what we found:
A conversion for this client was valued at $3000, per their average transaction amount that we cited above. The client provides this number, so we have to trust them that it’s accurate. Over the 593 calls we listened to, our Conversation Analytics engine identified 146 as conversions, for a conversion rate of 24.6%. Those 146 conversions should have equated to $438,000 in revenue.
With Convirza’s built-in call tracking features, our client can now analyze not only where the calls are coming from, but can now identify which of their marketing efforts are producing conversions, and can focus their business around those campaigns or marketing channels to see an immediate boost in revenue.
The average lead score across the 593 calls we heard was calculated out to be 43 on a 0-100 scale. In the wider Convirza universe, we’ve seen a strong correlation between lead score and conversion rate. Lead score is a metric that can be used to do A/B testing, analyze each marketing channel, campaign, ad, etc., and to hold vendors accountable for producing good leads. The lead score on its own is an interesting number to follow, but it becomes really interesting when you pair it with conversions – actually, when you compare it with the calls that didn’t convert.
When you take a “good lead” (that is, a lead score over 60) that didn’t convert, we call that a “Missed Opportunity”.
This is where the rubber meets the road. Consider this – if you knew exactly which customers called into your business that were ready and willing to buy, but didn’t, what could you do with that information?
Well, you could call them back and make the sale. With our integrations, whenever there’s a Missed Opportunity, you could get an email with the details sent to you – or your sales manager or whomever – automatically. And if you could recapture even just a portion of those customers, imagine the impact it would have on your bottom line.
For our client in this example, we determined that a whopping 37.9% of the calls were good leads that didn’t convert. On 539 calls, that’s 224 customers that were ready to buy, but didn’t. 224 customers at an average of $3000 per sale is $672,000 in lost revenue! If the client set up a call-back program to attempt to reclaim those clients, and if they were only 20% successful in that effort (remember, these clients were “good” leads – which convert at well over a 60% rate in the Convirza universe), that would equal $134,000 in recaptured revenue. Talk about the one that got away!
But we know that this data is based on a lot of assumptions. Maybe they weren’t all “good” leads, and maybe the client’s average sale wasn’t quite the $3000 they told us it was. Let’s say we were off by half, and the client was only half as successful in recapturing these calls. They would still be able to capture $33,500 in lost revenue that otherwise was headed to a competitor.
And that’s just over a 3 week period. Go ahead and do the math and see how that comes out over the course of a year.
Okay, fine. I’ll do it for you. $581,000. That’s the impact Convirza could have on the bottom line of this specific client.
This client isn’t extraordinary. We see numbers like this all the time.
So here’s the bottom line – What’s this kind of data worth for your company? Call us. We’d love to talk about it.
By the way, we crunched all this into a nice and pretty infographic. Check it out, here.