Pipeline Management Best Practices
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Cloud9 2010 1 Proven Sales Pipeline Management and Forecasting Best Practices for Sales Managers Tracey Kaufman Cloud9 Analytics Sr. Director of Customer Experience August 2010
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The number of forecasted deals that are won are at an all time low. See how pipeline management informed by analytics can improve your bottom line revenue. Knowing what's changed is critical to making your number.
Transcript of Pipeline Management Best Practices
Cloud9 2010 1
Proven Sales Pipeline Management and Forecasting Best Practices for Sales ManagersTracey KaufmanCloud9 AnalyticsSr. Director of Customer Experience
August 2010
Cloud9 2010 2
What We’ll Cover
• How pipeline management informed by Analytics can improve your bottom line revenue
• Why knowing "what's changed" in your sales pipeline is critical to making your number
• A step-by-step process for running successful weekly sales meetings informed by Analytics
• How to become an expert at 1:1 coaching using sales pipeline data
Cloud9 2010
The PROBLEM
Source: CSO Insights: May 2010
Only 44.8% of Forecasted Deals Are Won
50% of Time Spent on Revenue GEN
Selling w/ RepsCoaching Reps
Internal Meeting & Management Tasks
Other (Train / Travel)
Pipe / Forecast MGMT
27.2%
15.8%20.3%
21.6%
14.7%
Won
LostNo Decision31.3%29.9%
44.8%
Only 23% of Firms have a Dynamic Sales Mgmt. Process
Only 51.5% of Reps Are Making Quota
Only 78.5% of Plan Attainment is Accomplished
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Which MEANS
45% use CRM to Manage Sales Forecasts
You’re missing out on REVENUE
4.0%
30.4%
45.5%
20.1%
Use Core CRM System
Use Spreadsheets
Use Sales Analytics
Other
CRM isn’t ENOUGHSupports business NOT management processes&
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INCREASE Bottom Line Revenue & Predictability
Improve Pipeline Velocity:(# of deals) x (win conversion rate) x (avg. deal size)
Average selling time in days
The GOAL
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Example of VELOCITY
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Let’s Calculate Monthly % CHANGE in VelocityOr Variance–Pipeline Acceleration / Deceleration
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The SOLUTION
BETTER Pipeline ManagementDetect & Correct vs Measure & Punish
Activity x Proficiency = Sales
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Use ANALYTICS to:
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• Determine which forecasted deals have changed and how
• Determine which forecasted deals are slipping and why
• Determine which reps need extra coaching/mentoring
• Coach reps on how to prioritize which accounts to pursue
• Assist reps in qualifying out low quality opportunities early
Be PROACTIVE
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Pipeline Management Best Practices
Implement a DYNAMIC Pipeline Mgmt. Process 1
Escalate CRM ADOPTION for Visibility2
Leverage Pipeline ANALYTICS3
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Running a Weekly Meeting
• Where are we now–are we on track?
• Where are we going–do we have sufficient coverage to make our number?
• What’s changed–how does our progress compare to other periods (in the past)?
Ask YOURSELF:
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Performance and Coverage
Compare current performance against quota and forecast
Drill into details
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What’s Changed
Review pipeline changes (won, lost, adjusted), uncover exceptions, identify risks and develop next steps
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Weekly Meeting Example
Do Q/Q comparison, identify risk areas & make course corrections to refocus resources
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1:1 Coaching Example
Look at last quarter’s results:
• Are your reps entering a high % of deals late in the quarter or doing post quarter cleanup?
• What % of their committed deals were won, lost and deferred, adjusted?
For the current quarter:
• Is there a high percentage of expired deals?
• Are there a lot of stale deals that haven’t been managed? Should they be closed?
• Are Activities being updated regularly?
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Results You Can Expect
“Adaptable companies with a dynamic sales process reported
30% higher forecasted deal conversion rates than average”
2010 CSO Insights Report
Potential of 10% increase in revenue via improved sales pipeline/funnel management
2007 McKinsey study
VELOCITY & REVENUE Improvements
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C9 Customer Success Stories
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Forecast accuracy improved by 50% resulting in better
resource allocation
Increased forecasted deal closure by 5% resulting in
$400K per quarter
Returned 80 hours per quarter in selling time back
to Sales Management
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3 Things You Can Do Today
Review performance against goals and forecast, Review pipeline changes, Do comparisons
# Deals, Win conversion rate, Average deal size & Sale cycle daysMeasure the key pipeline velocity drivers for your business
Review pipeline regularly, Proactively identify risks & Drive desired behaviorsAdjust your Sales Management Process to improve velocity drivers
Use Analytics to inform your weekly meetings and 1:1 coaching sessions
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Cloud9 Pipeline Accelerator
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Thank You
