One of the hardest things about being a sales rep is knowing if you’re doing a good enough job. But what is “good enough?” You might feel like you’re crushing it with your cold email campaigns only to find out your competition is getting double your response rate.
In sales, knowledge is power. And while you might not be able to get your competition’s exact metrics, knowing industry benchmarks can tell you where your sales efforts are working, and where they’re lacking and need your attention.
If you’re in the B2B space, these are the benchmarks you should be hitting at every step of your cold email and cold calling sales funnels.
Sales benchmarks for cold emailing: The 30/30/50 rule
A basic cold email sales funnel looks something like this:
- Open rate: How many people opened your email?
- Response rate: How many people responded to your email?
- Conversion rate: How many people took the action you wanted them to take (i.e. schedule a demo, sign up for a trial, download a whitepaper)?
First off, if you’re not able to track these numbers, then you’re already in trouble. You can’t fix what you don’t know is broken. And the only way you can improve your sales funnels (and your entire sales process) is by knowing how you’re doing at each stage.
Once you have your tracking in place, there are specific benchmarks you should be hitting to know if you’ve got a healthy funnel.
Opening rate: Minimum 30%
If less than 30% of the people you send cold emails to are opening them, this is a problem you need to deal with. An open rate below 30% makes every other part of your sales process harder. Try writing better subject lines, experimenting with sending your emails at different times, or making sure you’re only messaging your ideal customer.
Response rate: Minimum 30%
You don’t just want prospects to open your sales emails. You want them to read and respond to them. Again, if less than 30% of people who opened your email are responding, this is an area that needs improvement.
Ideally, your response rate should be closer to 50%. But if it’s lower than 30% that means something is fundamentally broken in the body copy of your email and won’t be fixed just by doing more outreach.
To fix your response rate, you might try experimenting with:
- Your pitch: Is it short, clear, exciting, and compelling?
- The person you’re pitching to: Did you properly qualify the lead? Are they your ideal customer profile?
- What you’re asking them to do (your CTA): Is it super clear what their next step is? (i.e. hit reply, schedule a time for a call or demo, etc…) Remove as much effort as possible for the prospect to maximize response rates—one way to do so is the 1, 2, 3 email hack.
Conversion rate: Minimum 50%
At this point of your cold email funnel, you should only be dealing with highly qualified and engaged prospect. They’ve opened, read, and responded to your emails. And you should be able to convert at least 50% of them.
As always, you want to aim to be above this number. But less than a 50% conversion rate is a major red flag. [Read More…]