I was in the convenience store the other day and watched a lady buying Scratch & Win tickets. Her selection methodology, I am positive was based on pure emotion, color and the name on the scratch & win game itself.
Believe it or not this encounter got me thinking about sales conversion & statistics, so I made a mental note to check on this lady’s odds of getting lucky. I was amazed to find on the local lotteries website not only the odds of buying a winning ticket for each type of scratch & win game (e.g. 1 out of 3.51 or 1 out 4.96), but as well the amount of outstanding prizes and their dollar values. In other words, with some simple math, not only could you calculate which scratch & win tickets were more likely to pay out, but as well target which games still had the most money outstanding. This lady’s odds at 1:5 were much better than the regular 1 out of 6 Million Lotto 649, but unfortunately she chose a ticket that only had about 16 low value prizes left. In other words, she was statistically hooped.
So what does this have to do with sales conversions?
Well, just like the scratch & win ticket buyers selection methodology was skewed towards emotion, and not to the best statistical odds of winning. So too are many sales conversion efforts directed by emotion, gut & chance. This is not to say that luck and gut have no place in seeking sales conversions, as they often do, but if that’s the entire focus then you have lowered your odds of converting sales and like the lottery lady may be statistically hooped.
So in seeking sales conversions, there is a huge advantage for people willing to do a little research and ultimately track and test sales conversions.
Research your odds and set an acceptable ROI for your sales efforts, and this will force you to focus on activities that will provide a good Return on Investment and avoid those that don’t.
Online: As an example online, would you pay Google Adwords to send visitors to your page if it will cost you more than you can convert to sales? If you aren’t tracking and recording these numbers, how will you ever know the answer? Use Google Analytics or a similar service online to monitor and improve every aspect of your sales conversions. Who knows, maybe blue font on your page will pull 10% better than black…you just won’t know if you don’t track and test.
Offline: Regardless of what type of sales industry you are in, if you aren’t tracking your sales efforts, then how do you know your odds of converting sales. Quite simply you don’t and are similar to the lottery lady operating on gut feeling and emotion. If you excel and are a sales leader in your field, then of course this is all hogwash and doesn’t apply to you. Your experience far out weighs statistics. But, if you are part of the other 95% of sales people, then giving your self a statistical advantage is more than important. I would recommend tracking sales efforts offline with ACT or some other Customer Relationship Management program that can calculate conversions to sales.
Odds are odds, whether they are the unlikely odds of buying a winning Scratch & Win Lottery Ticket, or the odds of an internet visitor converting to a sale. With a little research and testing you can often give yourself an unfair advantage over your competition! Armed with the right information, odds are you’ll find yourself holding a winning ticket to better sales conversions.