I made an entry in the Linkedin SLMA Group that asked the following question:
A company selling a product with an average sales price of $12,000 needs to sell $3,000,000 of product in the coming year.
$1,000,000 will come in from the existing pipeline.
The closing ratio is 25% of the buyers (which is a percent of the total inquiries).
Follow-up of inquiries by the salespeople is 50%.
How many inquiries will it take to create $2,000,000 in new business? Tell us how you came to your conclusion.
Scott Tate of the greater Boston area responded with his estimate of the answer. To see Scott’s answer go to the Sales Lead Management Association Linkedin Group. But that is cheating.
Come up with your own answer.