You’ve just been introduced to a person who was not only very happy to meet you because you have the chops to take on a hot project that’s on his/her radar screen, but additionally has the authority to green-light your hire. Oh, happy day!
You’re thrilled to perform the card exchange as the newest prospect asks you to make contact in order that the both of you can talk specifics. You can almost taste the billable hours, but just how excited should you be? Statistical probability can enable you to put a dollar value on the happiness quotient.
I found this intriguing formula that utilizes historical data from sales outcomes and statistical probability data, letting you calculate the expected value of your upcoming prospect. As has no doubt been reflected within your experience, you will find a randomness to networking and Solopreneur consulting contracts. Inside your effort to take much-desired predictability and financial security in your life, the Solopreneuer’s objective is to control variables, positively impact outcomes, win projects and generate revenue.
Let’s say you’re talking to a prospective client regarding a project that you estimate is worth $10,000.00. The operative word is estimate. $10K will be the potential value, but it’s not the true value until and except if you or someone else is awarded the project. If nobody wins the project, then it’s worth zero.
The project’s worth is impacted by the odds of an effective close. The following formula enables you to calculate the possibility worth of the prospect as well as the project throughout the various stages in the sales process.
Both the steps within the sales process and also the values assigned each and every step along the way derive from historical data provided by a sizable corporate sales force. To refine the precision, identify the steps within your usual sales process and record the sales success rates at every stage of your sales process.
I. Identify the steps inside your sales process:
* Invitation to fulfill and discuss the project
* Initial appointment / discussion of needs and benefits
* Verbal proposal / assessment of needs and benefits
* Invitation to submit written proposal
II. Determine the possibilities of an effective outcome each and every step:
* Invitation to discuss project 2% success
* Initial appointment / discussion of needs 8% success
* Verbal proposal/ assessment of needs and benefits 25% success
* Invitation to submit written proposal 65% success
III. Calculate the dollar value at every point in the sale for any proposed $10K project
* Invitation to talk about project $ 200.00
* Initial appointment / discussion of needs $ 800.00
* Verbal proposal / assessment of needs and benefits $2,500.00
* Invitation to submit written proposal $6,500.00
Exactly what do the statistics mean? Should you be invited to meet with the prospect, there is a 2% possibility of winning the contract at that point. If because first appointment the prospect launches a conversation in regards to what would or could be needed in terms of project work, you bump as much as an 8% possibility of winning the agreement. The dollar values tell you exactly how much the sales process is “worth” at every step that leads approximately signing the contract, if you can to accomplish this.
If within the conversation, or in a follow-up conversation or email, there exists a discussion of project specifics, such as its purpose, needs and benefits, and also the talk centers around the suitability of your rohnfp and expertise to do the job, there is a 25% probability that you are awarded the project. Should you be invited to submit a written proposal, the chance of signing the agreement advances to 65%.
The key to customizing the outcomes probability formula for your company is keeping detailed records of sales presentations from which to compile your statistics. Here is an additional reason to document your company transactions in order that reliable data is going to be there to steer your business planning.