Hacked BD's cold email marketing ROI calculator can be used to understand whether cold email marketing is a good strategy for your business. It should help you reverse engineer your conversion rate metrics, and determine how much email volume you need to send to hit your goals.
Enter the number of contacts you'd like to target with your email marketing campaigns. We recommend choosing a number that gives you the amount of total new business won that hits your growth targets.
Interested rate is the number of contacts that you email that are interested in your offer. Hacked BD suggests using an average of 1-2% for this calculator. This number is dependent on the effectiveness of your value proposition, targeting, and copy.
Deal value is the amount of revenue you receive from each new client that you win. We recommend using LTV (life time value), or ACV (annual contract value).
Close rate the the percentage of interested leads that you expect to close. Most organizations can expect to close 20% of interested leads if they have a strong value proposition.
The number of new leads generated is calculated based on the number of contacts targeted monthly, and the interested rate.
The total new business won is calculated based on the number of new leads generated, multiplied by the close rate, and then by the deal value.