Transcription
But if you're watching this video right now, and you feel like maybe you're doing more and more work, and you're getting less and less return, then pay close attention.
Let's say we have business A and business B. Each of them are able to take 10 sales calls a day. What I'm going to show you in this video here is how business A is closing one out of those 10 people, and how business B is closing two out of those 10 people. In short, business A is optimizing for number of booked calls, and business B is optimizing for booked to close rates.
You take the amount of booked calls that you have. Let's say 100 book calls, for example. You multiply it by how many of those calls are qualified. Let's say in this example, what I see a lot of time is like 50% of people that are booking calls are actually, quote unquote, qualified. And then, of those people that are qualified, let's say that you have 20 people show up out of that 50. And then, of those 20 people that actually show up, you have four people actually close, which means you have a 4% booked to close rate.
Now, here's what most founders do. They will look at these numbers here, like let's say this 20% close rate, or if you're looking at booked calls, this 20% show rate right here, and they'll go crazy. But what they're really missing is the work that happens upstream, right? And that's going to be what I talked about earlier, which is that qualified booked percentage. And to be honest with you, 50% qualified book calls is kind of generous. It's not uncommon for us to start working with somebody and realize that their qualified book call percentage is 20%, 15%. And we extrapolate out that 10 or 20% and we look at their show rate and their close rate. It's not uncommon for all of the sudden the show rate to be 80% and the close rate to be 35% because they're actually speaking to people who are worth speaking to.
On top of that, if we illustrate what this looks like on an actual sales calendar, what's happening at business A is if our qualified people are in green right here, they are having the majority of their calls in the day be red. And so, they're either no-showing, they're not going to close, etc., etc. Where business B, sure, you don't have 100% of people that are going to be qualified, but if you have a higher percentage, you know, 60, 70, 80% of people that are qualified, well, now you're closing way more deals way faster.
Also, what I see happening is business A could even be booking more calls than business B, where business B could be booking literally half the calls, or let's say 20% less, 30% less the calls, but still be making more on a daily basis because they're focused on the book-to-close rates.