Developing sales in a new environment, whether a new job, career path, or company may be a challenging endeavor. On the other hand, Exceptional salespeople tend to breeze through this first phase, producing results in record speed. The average salesperson, on the other hand, has a hard time. The good news is that there is a well-known key that can be used to solve this issue.
The Law of Large Numbers is the key, and it applies to almost every type of organization, large or small, in any sector, whether product or service-based. According to the legislation, any sales effort must first approach enough prospects to account for the substantial percentage of those who will not become customers.
Consider the logic: You’ll need a large number of first sales interactions to generate enough moderate interest responses, book enough follow-up appointments, close enough sales, and achieve the results you’re looking for.
The model resembles an upside-down triangle or funnels with a downward arrow pointing to ultimate sales. It’s also known as a pipeline. The precise numbers in the sequence may vary significantly depending on the salesperson’s experience and talent, as well as the nature of the firm.
According to some estimates, it takes 500 contacts to get twenty responses, which will result in two or three completed transactions. When dealing with highly specialized company services, the figures inherently fluctuate. If you manage a childcare center, your target market is generally quite localized and motivated by urgency (moms and dads who need child care right now) (near home or work). You don’t need hundreds of prospects to fill an available highchair since your customers are already self-qualified and motivated. Consider how much higher you need to fill your funnel if you offer high-ticket or incredibly “common” items like cars or shoelaces.
So, what are your objectives for this law? You may be able to rapidly create sales for your new firm if you are an entrepreneur with strong selling skills and a network of contacts from prior jobs. If you aren’t, you’ll have to make a lot more initial contacts and expect a significant drop-off in prospects as you progress through the sales cycle. Of course, there’s reason to be optimistic: as you gain experience and expand your network and skills, your chances of success should improve. Practice makes perfect, as it does with most things.
The Law of Large Numbers isn’t just a pipeline or a funnel. It’s all about the quality. So don’t waste money on a 100,000-person electronic mailing list to send your garden equipment catalog or to fill that vacant highchair. Half of them might not even have a child or a garden! It may be more cost-effective to purchase a list of far fewer but highly qualified names (or hand out a flyer to each mom and dad whose child you care for, say you have an opening). These are just examples; you’ll learn more about what works in your particular industry if you think about it and test a couple of different techniques.
Your selling abilities will also influence the way the Law of Large Numbers works for you. If you’re unsure about your selling abilities, some study or training will assist you in enhancing your success rate with the prospects you do develop. Remember the Law of Large Numbers and plan and sell following it.