The Email That Closes Sales On CRO Projects
Conversion rate optimization projects need to be sold before any work can begin - obviously. Some time ago we started using the following email template to close sales, which I wanted to share. I think it's successful because it frames the project as an investment within a range of possible outcomes.
Getting To Know The Client
First of all, I should mention that we don't usually fire off a price to a potential client on day one. Instead we ask a series of questions (hopefully like most people) which help us to discover some of the following:
- Key metrics & how much they are worth to the business (in dollars per month)
- Current traffic & conversion rates to gauge testing sensitivity (how small of an effect can we detect) & testing velocity (how many tests we can run each month)
- Testing scope (how many pages are there to test)
- Targets & timelines (what does success look like and by when does it need to happen)
Once we have a conversation or two or three, eventually the client will want to know the cost of the project. But what they really want to know (that they rarely say) is an understanding of what they will get in return in dollars. So we tell them exactly that - what kind of a ROI can be expected and at what cost. I should also add that we price our projects with a hybrid model that combines a base monthly fee with a performance bonus (tied to relative effects from actual test results). Here is the email that we send out once we feel that we can offer something of value:
Thanks for the call the other day. I wanted to share with you a couple of possible outcome scenarios if we decide to work together. I'm proposing to go with a 4 month term at $4k per month with a $600 per 1% bonus, that would cost $16k for 4 months as the base price.
Scenario 1: No Wins (unlikely based on our track record)
Loss of $16k with learning potential from insignificant and losing tests
Scenario 2: +10% [METRIC]
Cost of $16k + $6k performance fees = $22k total cost.
Given your $60k Monthly Revenue, you would recoup the investment in less than 3 months (by raising your MRR to $66k)
Scenario 3: +20% [METRIC]
Cost of $16k + $12k performance fees = $28k total cost.
Given your $60k Monthly Revenue, you would recoup the investment in less than 2.5 months (by raising your MRR to $72k)
Scenario 4: +30% [METRIC]
Cost of $16k + $18k performance fees = $34k total cost.
Given your $60k Monthly Revenue, you would recoup the investment in less than 2 months (by raising your MRR to $78k)
Overall I feel that that there is an upside and the numbers are on our side to move forward with this.
Let me know if this helps you to understand the optimization investment and when you are ready to decide.
Waiting to hear back & looking forward to working together.
The email above actually closed a number of sales for us and one of the reasons why it might have done so is its authenticity. What I mean by that is that when we do CRO work we cannot guarantee results - and we admit that. Since we're dealing with uncertainty we can only communicate probable results that range from 0% and upwards (usually upwards). We might have a track record that gives us confidence that we'll deliver positive outcomes, but we clearly admit the slight possibility of ending on a 0% effect outcome - at which we tag the project at a possible loss. This frames the project as an investment and clients like this honesty. Honesty is a building block of relationships.
The other possible reason why the above email works is because it shows to the client by when the work will pay for itself. Knowing the business value of each metric (shown in monthly revenue) we can easily calculate when the total cost will be recouped. And what we want to convey is that the higher results we deliver, although the cost increases (due to performance bonuses), the recoup duration gets shorter (from 3, to 2.5, to 2 months, and so on). This gives both of us a clear green light and incentive to score as high gains as possible.
Performance Element & Risk Sharing
Finally, we often hear from clients that they like seeing our hybrid performance based pricing where we take on some of the risk. Although we never take on 100% of the risk (since we charge monthly fees as well), clients do like the element of having us equally invested (we like it too).
What worked for you?
Share your thoughts and experience around what helped you close projects (CRO projects).