Conversion rate is the rate of success on your campaign. What counts as a conversion varies per campaign, most cold call campaigns are split between appointment setting and data verification/lead qualification.
According to industry averages: Conversion rates for cold calls usually fall in the 2 percent range, while referrals may have a 50 percent conversion and solid leads may have a 20 percent conversion.
Are Purchased Lists "Solid" Leads?
What determines a "solid" lead is difficult to quantify as it very much depends on your target market. One thing to note for sure is that a purchased list is a COLD LIST. Even if you think you nailed your market demographic, you are still calling people who have likely never heard of you. We consider purchased lists as cold leads, and so should you. We have had very high conversion rates from purchased lists that were carefully researched and targeted (in the range of 20%-40%) but this is NOT the industry average, nor is it expected of all lists. Generally any conversion rate above 2% on a purchased list is considered a win.
Upcall's working average conversion rate so far is 22%. About 96% of our clients use cold lists. This conversion rate is well above the industry average for cold call campaigns.
How do achieve the highest possible conversion rate?
The main keys to a successful campaign are:
- A carefully researched list (if they are cold leads or the list is purchased from a database).
- A clear script
- Engaged and well-trained callers
Cold Lists with 1000 or more contacts on Upcall have a conversion range of 20%-40%. Cold lists that are less than 500 have a conversion rate of 0.2%-15%. The reason is because list quality varies. Most campaigners who do small "Test" campaigns have less targeted lists.
Less targeted list that is <500 = low conversion rate every time. If your list is not properly research it should be larger if you want to fill out your pipeline.
When researching your list, make sure you consider your market fit and ideal customer. The main question you should be asking yourself is, "what makes my ideal customer?". You need to consider income ranges, company size, employee count, decision makers and much more. The more data points you consider the stronger your list will be.
If you are simply searching for industry and hitting GO. You do not have a targeted list. If you want a good conversion rate, then the list better be HUGE.
Keep it simple. Engage your callers. Don' t ask too many questions. Have a clear value proposition. Give the caller room to think on their feet and improvise.
Provide detailed instructions within your campaign. The best places are within the Instructions and Additional Instructions section of your script area. It's best to provide information like FAQs or descriptions of how you would like Upcallers to engage with customers. Also helpful is describing what your ideal customer looks like if you're doing a prospecting or qualification campaign.
You get what you put into it. Garbage in, Garbage out. Gold in, Gold out.
Think about your targets, make them clear, aim and fire.