Take a Look at the Evidence

 

“The numbers game, …, is a form of illegal gambling or illegal lottery played mostly in poor and working-class neighborhoods in the United States.”

Wikipedia

 

Sales professionals often refer to their line of work as a "numbers game." At first glance, this phrase might sound like an excuse for failures or, even more so, a justification for relentless pursuit.

I wrote a first article about the topic about 18 months ago. And in a variety of posts and comments on social media since I shared my belief that it is a numbers game, in addition to many other things: a skill, an underrated profession, and a continuous learning opportunity.

The truth is that sales being a numbers game is not just a catchy saying; it is backed by solid evidence and real-world experiences. Here are a few proof points:

1. Conversion Rates Don't Lie

One of the most compelling pieces of evidence supporting the numbers game theory is conversion rates. In any sales process, a certain percentage of prospects will convert into paying customers. This conversion rate can vary based on factors like the industry, product/service complexity, and the skill of the salesperson.

For instance, if a salesperson has a 20% conversion rate, it means that for every ten prospects they engage, two will become customers. This number remains relatively constant over time and indicates that to increase the number of customers, the salesperson needs to interact with more prospects. The more prospects they engage, the more customers they are likely to acquire.

2. The Pareto Principle

The Pareto Principle, also known as the 80/20 rule, further solidifies the numbers game concept in sales. This principle suggests that roughly 80% of sales come from 20% of customers. In other words, a small subset of customers drives the majority of revenue.

By understanding this principle, sales professionals realize that their time and efforts are best spent identifying and focusing on the most promising leads. This process inevitably involves reaching out to a large pool of potential customers to identify those high-value clients who will have a significant impact on the bottom line.

3. Sales Funnel Realities

The sales funnel is a visual representation of the buyer's journey, from initial awareness to becoming a customer. It is a crucial concept in sales, and it reinforces the numbers game theory.

At the top of the funnel, there are many potential leads, but as prospects move through different stages of the sales process, only a fraction of them convert into actual customers. As the funnel narrows, the number of leads decreases, emphasizing the need to have a substantial pool of prospects at the top to ensure enough customers at the bottom.

4. The Role of Persistence

Persistence is a key trait of successful salespeople, and it stems from the recognition that sales is a numbers game. Rejections are an inherent part of the sales process, and even the most skillful salespeople will encounter them. However, knowing that the more they persevere and the more prospects they reach out to, the higher the chances of closing deals are, keeps them motivated.

Research has shown that a significant percentage of sales occur after multiple follow-ups. In fact, a Harvard Business Review study found that 80% of sales require at least five follow-ups after the initial contact. This highlights the importance of persistence and the need to keep playing the numbers game.

5. Market Volatility and Uncertainty

Sales professionals operate in dynamic and unpredictable markets. External factors like economic conditions, technological advancements, and competitor actions can significantly impact sales results. To mitigate the impact of these uncertainties, salespeople must engage with a diverse set of prospects continuously.

In turbulent times, relying on a few big deals can be risky. By maintaining a steady flow of leads and opportunities, salespeople can safeguard their revenue streams and adapt to changing market conditions.

6. Learning from Data

Data analytics has become an essential tool for businesses in recent years, and sales is no exception. By tracking and analyzing sales data, companies can gain valuable insights into their performance and identify areas for improvement.

In the context of the numbers game, data analysis helps sales teams understand which strategies are most effective, which segments yield higher conversion rates, and what factors influence buyer behavior. Armed with this information, sales professionals can fine-tune their approach and optimize their efforts to yield better results.

7. Testing and Refinement

Sales, like any other field, benefits from a process of continuous testing and refinement. What works for one customer may not work for another, and what was successful in the past may not be as effective in the future.

By embracing the numbers game concept, sales professionals remain open to experimenting with different techniques, pitches, and strategies. This iterative approach allows them to identify what resonates best with their target audience, leading to improved sales performance over time.

The numbers game in sales is not a myth or an excuse for inefficiency. It is a fundamental reality rooted in many aspects of the day in a life of a salesperson. Acknowledging this reality empowers sales professionals to approach their work strategically, optimize their efforts, and ultimately achieve greater success in their endeavors. Embracing the numbers game, sales teams can turn what might seem like a daunting process into an opportunity for growth and achievement.

 

Contact us to find out how a Vendux Sales Leader might help you to work the numbers game.