No matter what you’re selling – a product to a customer, an idea to an investor, or even yourself in a job interview – in it’s simplest form, there are only a few key metrics that matter:
- The number of contacts that you make (suspects).
- The percentage of suspects who you engage with (prospects).
- The percentage of prospects who buy (customers).
- Your average deal size (revenue).
Here’s the math:
If you make 10 contacts per day, 45 weeks per year = 2,250 suspects. 10% ask for additional information = 225 prospects. 5% become customers (11) at an average order size of $25,000 = $275,000 in total revenue.
The great news…
With very little effort, you can dramatically improve your revenue, making the same number of contacts, and with the same average deal size. How?
“The great salesperson knows that by providing valued solutions, ‘hitting the impossible sales numbers’ becomes possible. The goal is not the numbers. Rather, the goal is providing value, differentiating oneself from the competition, creating loyalty, and ultimately making the life of the buyer better.”
– Sam Richter
Using the scenario above, imagine if – instead of contacting every suspect on a list starting at “a” and ending at “z” – you spent time locating decision makers that have a specific need (e.g., a challenge in their company or industry) and your outreach provides value to solve their issue.
Could you increase those who ask for additional information to 12%? Absolutely.
Instead of sending each prospect your standard brochure or a link to your website – you spent 15 minutes researching the individual and their company. Then in your engagement, you highlighted something of VALUE that you and/or your organization does that is REVELVANT to what your prospect cares about.
Could you increase those who become a customer to 6%? Absolutely.
With the same number of contacts, at the same average order size, you just increased revenue to: $405,000 or a whopping 47% increase just by providing relevant value in every interaction.
What if your research cut down on the time you had to communicate with suspects and now you only contact 1,800 per year? That still produces $325,000 in revenue, or a 19% increase.