Number of clients needed to successfully grow a business.
Posted: Tue Dec 03, 2024 6:34 am
Number of clients and prospects are for companies what food is for humans.
That is, it nourishes, provides energy, performance, proactivity, health and much more if the right amount is ingested.
For companies, this translates into better sales and achieving the path to success.
For this reason, knowing the number of potential clients that my company needs is essential to achieve commercial goals.
Statistics indicate that 40% of the most successful sales executives experience the qualification of potential clients as one of the most challenging stages of the business process. After all, good prospecting defines the path to closing sales.
When a company loses prospects or “stops eating,” just like a malnourished human body, it loses strength, power, and significantly decreases its sales and income.
If, on the other hand, the number of prospects or “the amount of food” is exceeded, the budget will be affected and, just like people, they will begin to have negative reactions “due to obesity” and compromise their resources.
More than 70% of companies that do not reach their sales goals have in common that they prospect less than 50% of what they should or need. Taking your company pharmaceutical email list from where it is to where you want it to be requires the creation of a sales plan that includes lead generation. To do this, it is essential to know the relationship between:
Average ticket
Marketing costs
Extra elements that become misleading
Knowing how many potential customers my company needs to reach its sales goal is essential. This helps you manage tangible and intangible resources , such as time and money, in an optimal and effective way.
Number of clients needed
How to calculate the number of potential clients my company needs?
Knowing how many leads my company needs varies from organization to organization. This number depends on certain factors that provide an overview of how many leads are needed to reach the goal.
For example: the percentage of sales closures. This statistic is also unique for each company. However, it is estimated that, in general, between 10% and 13% of potential customers become real customers.
You may be wondering: how do I calculate the number of potential clients my company needs to grow? Well, the truth is that the mathematical formulas are simple and easy. You just need to know your business's sales process perfectly, how it works, how it invoices, etc.
1. Calculate the number of real customers your business needs to reach the sales goal
To calculate the number of prospects your organization requires, you need to know the formulas; the first one is the following:
Determine the amount of money you want to make and divide this amount by the company's average ticket. The result will be the number of real customers you need to reach the goal. An example, with numbers, would look like this:
I want to earn $150,000.00 a month
My company's average ticket is $1,200.00
So:
$150,000.00 / $1,200 = 125
Well, the number of clients you need is 125 to reach the stipulated monthly goal.
2. Know your conversion rate
Now, let's establish what your conversion rate is based on traffic (it can be general, in each sales channel, or even individual). This way you will be able to know how many potential clients my company needs to approach in order to close the sales needed to reach the goal.
To do this, take the number of real customers (those who close deals) and divide it by the number of prospects that came to the company. The result is multiplied by one hundred (100) and thus the % of the opportunity conversion rate is obtained. It is as follows:
We close 25 sales per month
180 prospects are addressed
So:
25 / 180 = 0.1388 x 100 = 13.88
That is, the conversion rate of opportunities in your company is 13.88%.
3. Quantify the number of potential clients my company needs to grow
Knowing these two pieces of information, we can identify the number of prospects that the organization must address to reach the goal. To do this, be clear:
Amount the company wants to earn
Average ticket value
Number of sales that must be closed to reach the goal
Closing Rate Percentage
With the main numbers on the table, you can proceed to perform a simple rule of three. In this formula you are looking to find out how much 100% of potential clients is, if the number of sales you need to close is equal to the percentage of the company's closing rate. That is:
If you need to close 128 sales and you know that your conversion rate is 13.88%, how many prospects should represent 100% of the traffic in the organization? In numbers, it would look like this:
Which means you need to reach 922 potential customers to achieve a sales closing that meets the company's expectations. Now, check how real this calculation is taking into account all the established values.
If you approach 922 prospects and close 13.88% of sales, you would be executing 127.9 deals, which when taken to a complete number is 128.
If these 128 sales have an average ticket of $1,200.00, we would be reaching the closing of $153,600.00 per month.
In this way, proper prospecting allows you to work towards achieving and exceeding your objectives.
Other factors to consider when calculating how many leads my business needs
These formulas help to have a number for each company. However, establishing the amount to be sold requires the study of other important factors that depend on the type of company and its working model.
For example, in B2C companies, the average sales closing value is 10% of prospects generated per day.
To calculate your revenue goal, it is important to know the cost of generating 1 lead to know what your desired ROI is.
This cost is influenced by:
Price by sales channel
Number of prospects per channel
Time spent generating a prospect
Money invested in generating a prospect
However, these companies have the advantage that the purchasing decision depends on a single person and this reduces the sales cycle.
In B2B companies, knowing the type of industry and how the market flows is essential. In each of them, the investment per prospect is different and, therefore, the number of potential clients needed to cover costs, generate profits and obtain a return on investment varies.
Knowing how many potential clients my company needs to achieve the organization's goals depends on each company.
However, these basic formulas are customized and allow you to know the number of potential clients that need to be addressed. Understanding the metrics, operational and numerical details of the company is essential to have a clear picture.
That is, it nourishes, provides energy, performance, proactivity, health and much more if the right amount is ingested.
For companies, this translates into better sales and achieving the path to success.
For this reason, knowing the number of potential clients that my company needs is essential to achieve commercial goals.
Statistics indicate that 40% of the most successful sales executives experience the qualification of potential clients as one of the most challenging stages of the business process. After all, good prospecting defines the path to closing sales.
When a company loses prospects or “stops eating,” just like a malnourished human body, it loses strength, power, and significantly decreases its sales and income.
If, on the other hand, the number of prospects or “the amount of food” is exceeded, the budget will be affected and, just like people, they will begin to have negative reactions “due to obesity” and compromise their resources.
More than 70% of companies that do not reach their sales goals have in common that they prospect less than 50% of what they should or need. Taking your company pharmaceutical email list from where it is to where you want it to be requires the creation of a sales plan that includes lead generation. To do this, it is essential to know the relationship between:
Average ticket
Marketing costs
Extra elements that become misleading
Knowing how many potential customers my company needs to reach its sales goal is essential. This helps you manage tangible and intangible resources , such as time and money, in an optimal and effective way.
Number of clients needed
How to calculate the number of potential clients my company needs?
Knowing how many leads my company needs varies from organization to organization. This number depends on certain factors that provide an overview of how many leads are needed to reach the goal.
For example: the percentage of sales closures. This statistic is also unique for each company. However, it is estimated that, in general, between 10% and 13% of potential customers become real customers.
You may be wondering: how do I calculate the number of potential clients my company needs to grow? Well, the truth is that the mathematical formulas are simple and easy. You just need to know your business's sales process perfectly, how it works, how it invoices, etc.
1. Calculate the number of real customers your business needs to reach the sales goal
To calculate the number of prospects your organization requires, you need to know the formulas; the first one is the following:
Determine the amount of money you want to make and divide this amount by the company's average ticket. The result will be the number of real customers you need to reach the goal. An example, with numbers, would look like this:
I want to earn $150,000.00 a month
My company's average ticket is $1,200.00
So:
$150,000.00 / $1,200 = 125
Well, the number of clients you need is 125 to reach the stipulated monthly goal.
2. Know your conversion rate
Now, let's establish what your conversion rate is based on traffic (it can be general, in each sales channel, or even individual). This way you will be able to know how many potential clients my company needs to approach in order to close the sales needed to reach the goal.
To do this, take the number of real customers (those who close deals) and divide it by the number of prospects that came to the company. The result is multiplied by one hundred (100) and thus the % of the opportunity conversion rate is obtained. It is as follows:
We close 25 sales per month
180 prospects are addressed
So:
25 / 180 = 0.1388 x 100 = 13.88
That is, the conversion rate of opportunities in your company is 13.88%.
3. Quantify the number of potential clients my company needs to grow
Knowing these two pieces of information, we can identify the number of prospects that the organization must address to reach the goal. To do this, be clear:
Amount the company wants to earn
Average ticket value
Number of sales that must be closed to reach the goal
Closing Rate Percentage
With the main numbers on the table, you can proceed to perform a simple rule of three. In this formula you are looking to find out how much 100% of potential clients is, if the number of sales you need to close is equal to the percentage of the company's closing rate. That is:
If you need to close 128 sales and you know that your conversion rate is 13.88%, how many prospects should represent 100% of the traffic in the organization? In numbers, it would look like this:
Which means you need to reach 922 potential customers to achieve a sales closing that meets the company's expectations. Now, check how real this calculation is taking into account all the established values.
If you approach 922 prospects and close 13.88% of sales, you would be executing 127.9 deals, which when taken to a complete number is 128.
If these 128 sales have an average ticket of $1,200.00, we would be reaching the closing of $153,600.00 per month.
In this way, proper prospecting allows you to work towards achieving and exceeding your objectives.
Other factors to consider when calculating how many leads my business needs
These formulas help to have a number for each company. However, establishing the amount to be sold requires the study of other important factors that depend on the type of company and its working model.
For example, in B2C companies, the average sales closing value is 10% of prospects generated per day.
To calculate your revenue goal, it is important to know the cost of generating 1 lead to know what your desired ROI is.
This cost is influenced by:
Price by sales channel
Number of prospects per channel
Time spent generating a prospect
Money invested in generating a prospect
However, these companies have the advantage that the purchasing decision depends on a single person and this reduces the sales cycle.
In B2B companies, knowing the type of industry and how the market flows is essential. In each of them, the investment per prospect is different and, therefore, the number of potential clients needed to cover costs, generate profits and obtain a return on investment varies.
Knowing how many potential clients my company needs to achieve the organization's goals depends on each company.
However, these basic formulas are customized and allow you to know the number of potential clients that need to be addressed. Understanding the metrics, operational and numerical details of the company is essential to have a clear picture.