Bottom line, doing something basic really well is better than an over engineered piece of crap.
In today’s world, many organizations are over engineering sales data analysis which isn’t driving behavior and improving the sales force. Sales Performance Management is about identifying key metrics and driving sales force behavior to consistently make the number. This all starts with doing something simply really well, like tightening up your sales dashboards to drive success.
Step 1: Develop a Historic Sales Curve
Build a historic sales curve by capturing sales data over the last several years and allocate it into a timetable. For example, take sales closed data and categorize it into months and divide each month by the total sales in that year to determine % closed per month. The subsequent sales curve will provide you with a baseline for performance month by month and can be used to measure sales bookings against.
Step 2: Use Win Rate to Calculate Pipeline Needed
Pipeline is always a leading indicator to how a sales period is going to go. It is universally accepted that the bigger the pipeline, the higher the probability of making the number. The challenge comes when you ask sales leaders how much do you need in pipeline to make your number, the answer is typically more than I have right now. Due to this reaction I now coach my clients to develop a pipeline quota. The quickest way to pipeline quota is:
Sales Required for a period / Win Rate = Pipeline Quota
(You want to calculate win rate on a cash basis meaning Value of Deals won divided by the value of deals closed.)
Simple, right? Setting a goal like pipeline quota will drive consistent success, reduce the stress of having to close every single deal and enable the organization to prosper.
Step 3: Identify a metric pegged to the Sales Strategy
Sales organizations leverage a number of strategies to growth their business. At a former client of mine, the go to market strategy focused on selling targeted account and leveraging cross and upselling current customers. The sales force sold across multiple lines of business so it became imperative to monitor sales for each line of business as well as cross and upselling.
Organizations using a land and expand strategy should ensure they measure the number of expand opportunities at accounts that have been landed.
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