Hi. It’s Barney here, Marketing Director at EnquiryBot.
I’ll bet you hear all the time how some magic product is going to transform your business and how someone is going to deliver stellar returns for your investment.
It’s true that at EnquiryBot, we’re making some pretty punchy claims about performance too, but unlike some, we’re not afraid to be completely transparent on how we arrive at our conclusions.
So, if you like getting into the details behind the numbers, or you need to make a water-tight case to your colleagues/boss(es), then this article is for you.
And if I’ve done my job correctly, by the time you finish reading this, you’ll be able to make that ‘no-brainer’ case and be reassured that our performance stats aren’t just plucked from thin air.
Because no one is going to be persuaded by “dude, I just really feel this is going to be great for us”.
Ok, there are just 3 numbers we need from you which underpin our calculations and once we have these we can say, with a high degree of accuracy, how EnquiryBot will perform for you:
1. Monthly Website Traffic
The absolute number of people who visit your website in a month
It’s a standard metric used by any website analytics tool, including Google Analytics, (where it’s called ‘Users’).
If you don’t have those numbers easily to hand, drop us a line. There are a couple of further options which we can likely help with.
2. Average Order Value or AOV
Average amount your customers pay for your goods or services
3. Sales Conversion Rate
This is a number every good sales person will know immediately and it’s a piece of cake to calculate:
Percentage of sales enquiries which get converted into actual sales
If you close 1 sale out of every 5 enquiries…
your Sales Conversion Rate is 20%. [1 divided by 5]
No more complicated than that.
That’s right. ROI is a term so misused and abused yet people throw it around like confetti thinking it makes them sound more ‘businesslike’.
But if you could use ROI to your advantage…you could get the committee dancing to your tune for once.
That would be pretty cool, wouldn’t it?
Engagement is key
From thousands of EnquiryBot ‘chats’ every day, we can say with absolute confidence:
35 out of every 100 visitors to any website will ‘engage’ with EnquiryBot
Engagement means some form of interaction or ‘conversation’ with a visitor and on average, EnquiryBot engages 35% of people.
“Why does engagement matter?” you might ask.
Because once someone is ‘engaged’, they’re 11.43 times more likely to make a sales enquiry with you. Yes, exactly 11.43. That’s the average across the board.
It’s the same principle in retail shopping and it’s why sales assistants come up to ask “Can I help you with anything today?”.
If they didn’t engage with you, you’d be many times more likely to walk out the shop without buying something.
How does that translate into $$$$?
Well actually, it’s pretty simple to figure out how this translates into money in your bank account and calculate an ROI.
If we know that engaged visitors are 11.43 times more likely to make a sales enquiry and we know that 35% of all visitors engage then we can calculate that 4% of ALL visitors will make a sales enquiry (0.35 x 11.43)
Once we have that number, it’s easy to predict increases in annual sales and since we know the cost of EnquiryBot, we can also calculate an ROI.
An example from the real-world…
Let’s look at a working example from an industry we know extremely well…golf clubs.
We know from our 80 or so golf club customers that Monthly Website Traffic is going to be around 4,500.
For Average Order Value, we’re going to be conservative and ‘guestimate’ an AOV of $120.
(Our example golf club sells some high ticket items costing thousands like memberships and weddings as well as some low priced things, like food, drink and green fees.)
Finally, we need a Sales Conversion Rate. Shall we say 20%? Again, let’s err on the side of caution, shall we? It’s better to underpromise and overdeliver.
Let’s plug these numbers into a simple spreadsheet and see the results:
From this spreadsheet, there are three numbers which are really important to you:
A bit of scenario analysis
Now you might be saying to yourself that a 20% sales conversion rate is a bit lowball or the AOV could be higher.
You might also ask yourself, what about if you could get more traffic to your website, how would that affect your bottom line?
Let’s see how the numbers change in three scenarios:
In each of those scenarios, additional sales generated increases by 50%, as does ROI and the payback time drops by a half.
And that’s by improving just ONE of the input metrics.
Imagine if you could improve all three?
(It’s something we can certainly help you with by the way).
Can we help you make the case?
At the start of this article, I promised to show you the numbers behind the claims and help you make a ‘no-brainer’ case for EnquiryBot.
And with our 30-day Money Back Guarantee you really have zero risk giving EnquiryBot a go – not to mention return a whopping 1,475% annual return on investment (ROI).
If you want to have a play and plug your own numbers into our ROI calculator or you’d like more information, click the link below, we’d love to help you achieve your growth targets this year.
Interested in arranging a 30 day, risk-free trial?
At EnquiryBot we believe:
“Happiness at work comes from achieving your goals, delivering remarkable experiences and not wasting your time.”