Step One: Determine the average value of a new account. How many accounts did your company open last year? How much business came from those accounts? Divide the total revenues by the number of new accounts to determine the average value of a new account in the first year.
Step Two: Determine how many prospects you need to convert to meet your revenue goal. Calculate by dividing your goal by the average value of a new account to determine how many new accounts are needed.
Step Three: Make an educated guess on the percentage of prospects you will convert into customers. What are the odds of closing new deals? Do you convert prospects into customers at a rate of 1 in 10 or 1 in 3?
Using this data, you will be able to determine if your list should contain twenty accounts or two hundred accounts.
Wednesday I will share how you should go about collecting names.
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