Assume that a prospect is interested in purchasing 4 tickets in a 20-game season ticket package. The prospect estimated that the sales force can close 20% of the deals after attending a game with an average of 1.5 transactions per customer. On average, those sales will be approximately $1,500. Assuming the cost of the package is $10,000, calculate the return on investment for the business. would like you to identify the following:

• Total number of tickets in the ticket package?

• Assuming the prospect will send 1 sales person to each game, how many tickets will they use in total for their potential customers?

• How many customers will they gain using 20% as a conversion rate ?

• Total number of transactions from customers ?

• Total Revenue Generated ?

• Return on Investment ?

Explain how you arrived at your final numbers.

Answer rating: 100% (QA)

Total number of tickets in the ticket package The total number of tickets in the ticket package is 20 The sales force can close 20 of the deals after attending a game with an average of 15 transactions per customer On average those sales will be approximately 1500 Assuming the cost of the package is 10000 calculate the return on investment for the business Return on Investment 10000 10000 020 20 200 15 02 or 20 Assuming the prospect will send 1 sales person to each game how many tickets will they use in total for their potential customers Assuming the prospect will send 1 sales person to each game they will use a total of 4 tickets As the prospect estimated that they can close 20 of the deals after attending a game with an average of 15 transactions per customer they will sell an average of 3 tickets per game Assuming the cost of the package is 10000 and those sales on average are 1500 their return on investment would be calculated as follows ROI 10000 3 3 4 100 1250 4 31250 It is important to note that this calculation assumes that customers are willing to purchase multiple tickets at once however if customers purchase only one ticket at a time like most sports fans do then it can be assumed that this number would increase by 50 How many customers will they gain using 20 as a conversion rate The sales force will gain 4 customers by using the 20 conversion rate They will be able to convert 20 of their prospects into sales which means every 100 prospects that are contacted will yield 20 sales The average transaction ... View the full answer