Effective pipeline management means matching the right levels of effort to the right opportunities.
Yet few businesses can analyse the relative value of different sales actions or measure the value of sales efforts exhausted on different opportunities.
They cannot evaluate the level of engagement justified in order to win the deals they are working on.
Defining the pipeline engagement level required enables sales leaders to;
Coach sales reps adequately
Identify opportunities that require attention
Analyse the effectiveness of sales people
Saves management and pre-sales time to focus on opportunities and people
Gordon Games Productivity Matrix:
Understand sales performance in terms of the level and effectiveness of engagement.
- Highlights opportunities to engage
- Streamlines forecasting processes
- Provides live feedback on opportunities for reps
- Identifies sales reps to coach
- Improves CRM adoption
An overall “pipeline health status bar” represents the average of the individual opportunities. This is driven by scoring the individual activities and field changes in the CRM system.
The engagement activities can include:
Actions are weighted so that high value activities count for more on the health status bars. Engagement levels can be defined at an organizational or sales territory level. Sales reps’ engagement to sales performance metrics can be benchmarked with;
Defined relative value for sales actions that win opportunities
Customisable scoring engine
Clear sales performance ratios for inputs versus output
Native salesforce.com solution including reporting and dashboards
Managers are spending 15% of their time on forecasting and pipeline management*. Yet 55% of forecast deals do not close*. Half of sales managers believe reps are too optimistic about opportunities. Most businesses say that training for managers around forecasting and pipeline management needs improvement.
Businesses that are good at managing pipeline can see increases of 30% in win rates*
Why? Overstated opportunities draw attention away from the deals that matter. Opportunities can be maintained in a “living dead” state by letting the close date drift out. This distorts win rates and gives businesses a false sense of the pipeline’s potential.
Less effort goes into generating new, real pipeline.
The opposite problem is when people want to avoid setting expectations. This can be done by understating the value of opportunities or hiding them from the field of view by over estimating how long it will take to close. These opportunities don’t get managed appropriately. They leave erroneous win rates because the true value is only reflected on the opportunities that are won. Growth is slower because decisions are overly cautious.
* “Sales Management Optimisation Study”, 2014 CSO Insights
Gordon Games Growth Matrix:
Understand sales performance in terms of ability to qualify and to forecast.
Forecasting credibility can be measured against sales performance to identify a sales reps style and impact their role in growing their business.
The reps who are best at managing the sales cycle and predicting the deals that will happen get recognized and rewarded for their role in the growing the business.
Matching forecasting credibility against sales performance means reps forecasting behaviours can be understood better.
Sales reps actively confirm the close dates and values of opportunities so that their “best guess” is truly reflected. These guesses are captured and scored with multipliers and sales reps are awarded for the accuracy of value, timeframes and early predictions. Other people involved in the opportunity can also make predictions and corroborate the opportunity owner’s view.