Market Share: It’s All in the Numbers

October 9th, 2009 by

By Pat Hinds

I taught a good lesson today on how numbers can work in your favour. One of the companies I am working with is hosting a customer/prospect event and is focusing on a specific vertical. The invitations for the event were sent out by email and the initial invite list was generated by the sales team. The location of the event will hold 150 participants; as a result, 150 is the target number of people they want at the event. The first round of invites totaled 150 and 20 people registered for the event the first day. The company did a few hours of follow-up calls to the initial invitees and they improved the registration rate by 5%; in total they had an 18% take rate on the first round of invites.

The goal of the event is to get 150 people to the event so the company had two choices: call the initial 150 invites and hope for a 100% close ratio or increase the amount of invites sent. Working with a partner a list of 1000 additional invitees was generated and sent; the results were an additional 50 people signing up to the event in the first day after the invite was sent resulting in a 5% take rate. I did a quick audit on the list and 100% of the people who registered from the second invite are the target vertical, but only 25% of people are from the targeted market segment that was identified when the event was put together.

After doing the audit on the results it reminded me of an episode from a show my daughter watches called, The Real Housewives of Atlanta.  One of the ladies on the show wanted to raise $1 million dollars for a charity by doing an auction of high end prizes costing a minimum $10,000. She sent out lots of invites and the party was full, but nobody bought any of the prizes. It was obvious that she sent out enough invites, but she targeted the wrong audience as to the sales goal she set for the event.

The lesson learnt from these events is you need to quantity numbers if you want to drive activity, but you need quality numbers to drive sales results.

Topics: Sales Consulting