A Shocking Statistic That’ll Change How You Run Your Business
A Shocking Statistic That’ll Change How You Run Your Business
An Important Statistic To Guide You Every Week
Only 3% of your market at any given time is on the market to buy.
That means if you have 1,000 subscribers on your email list, only 30 are on the market the buy your category of product or service.
Even fewer than that, about 5–10 of the people in that pool may be interested in buying specifically from you. This is where good branding, marketing, and sales determine how big of a slice of that pie you get.
If you have 100 people following your business’ Instagram, only 3 are on the market shopping, and maybe 1 will buy from you. This is why social media is a frustrating climb unless you have built an audience of thousands.
This statistic may be depressing for some, but for others, it’ll give them an exact culprit as to why they haven’t been seeing sales in the volume that they’d like, or provide a North Star on how high they need to ramp up their audience-building efforts to hit their revenue targets. To put this learning into practice, take these steps:
Take your highest-converting sales channel (email marketing and Instagram, are some examples) and figure out what the audience size is in the form of subscribers or followers. Calculate what 3% of that number is.
Once you have that 3% number, calculate 10%-30% (this is your conversion percentage) of that. This gives you an estimate of # of customers converted — where you fall on the 10–30% spectrum depends on how great your branding and marketing is, frequency of competitors, and product-market fit. The better you rank in these categories, the higher your conversion percentage will be.
If you’re not loving the number of sales you’re ending up with at the end of this calculation, work backwards and see how big of an audience you’d need to build for that 3% calculation to create a favorable trickle-down effect on your sales.
Create a lead generation marketing strategy to increase the number of eyes your brand is being exposed to. If you’re not sure about how to tackle this one, read this piece about how to create a brand voice that stands out, and then learn how to make content every week with ease. Even if you’re happy with how big your audience pool is, there will be constant attrition, so you have to stay vigilant at constantly refilling your audience pool.