Conversions and Calculating ROI

Understanding Campaign Goals and Conversions

The primary goal of AI Piping's email campaigns is to help clients identify prospects who show interest in your offer or book a sales call. These interactions represent the positive outcomes that the campaign aims to achieve. While it's logical to consider the direct sales and ticket size generated from meetings when calculating return on investment (ROI), this approach can lead to inaccurate conclusions, especially when working with small sample sizes in the initial stages.

AI Piping's Recommended Approach to ROI Calculation

To calculate ROI accurately, AI Piping recommends using average ticket size and average sales conversion rates per meeting. Here’s how to approach it:

1. Meetings Generated: For example, if your campaign generated five meetings in a month.
2. Sales Conversion Rate: Typically, you can close about 40% of sales calls.
3. Average Ticket Size: The average ticket size is $5,000.

Calculating the ROI‍

With five meetings, you would typically close two sales (40% of five meetings).

• Revenue from Sales: With an average ticket size of $5,000, this results in $10,000 of total revenue.
• Campaign Investment: If your investment in the campaign was $1,000, the ROI would be 10x.

Conclusion

By focusing on average sales conversion rates and ticket sizes, you can get a clearer and more reliable picture of ROI, especially in the early stages of your campaigns. This approach helps in avoiding the pitfalls of drawing conclusions from small data sets, giving you a more strategic understanding of the true performance of your cold email campaigns.