How Much Should an Appointment Cost for a Subscription-Based B2B?
Do you know the ROI of your sales development process? And, more importantly, can it be any better?
In one of our milestone articles, our Chief Marketing Officer, Eric Quanstrom, specifies the average price of a lead generated by a sales development team, and how the figure was obtained. This information is important for any business to understand whether it's outbound prospecting activity is the best option to drive ROI. And for many CIENCE clients, it’s helped shift their opinion on the extent of outsourcing opportunities we can provide.
In this post, we’ll look at sales development ROI for SaaS companies and other subscription-based B2B from a different perspective.
How much should SaaS companies and subscription-based B2B firms spend on one appointment to remain profitable?
Outbound Prospecting — Important Metrics
From what we’ve learned from our clients, it became obvious that most companies are focused on the number of set appointments and price. These two metrics are overwhelmingly considered to be the key criteria of outbound prospecting success.
While we also believe that the number and cost are important, our own experience proves that there are more crucial stats to review and prioritize when planning your sales development initiatives. Many of which are less obvious.
Most would agree that quality is more important than quantity when it comes to meetings (the right people from the right companies with pain points that can be addressed). With regards to price, reducing it still doesn’t guarantee the profitability of your sales development efforts.
Therefore, some SaaS startups and other subscription-based B2B companies don’t have the necessary tools to check if they’ve chosen the right strategy to help their business increase profit.
Being a provider of outbound prospecting services, we’ve learned the hard way that what matters most for SaaS and subscription-based businesses is the Minimum Profitable Price of Appointment. And luckily enough, there are ways to calculate it.
