Measuring Your Sales Opportunity Pipeline
2 likes4,609 views
The document discusses the measurement of sales opportunity pipeline management, focusing on calculating pipeline growth, won business, and analyzing sales cycle friction. It provides benchmarks for open sales opportunities and details the average days required to close deals at each sales stage over the past six months. Additionally, it examines trends in stage-to-stage movement and associated risks within the sales process.
Measuring Your Sales Opportunity Pipeline
- 1. MEASURING YOUR SALES OPPORTUNITY PIPELINE DataDrivenSalesManagement.com Swayne Hill, 2012 Copyright Swayne Hill, 2012
- 2. Sales Pipeline Growth (Erosion) ≒ Benchmark Pipeline + Won = the Pipeline Erosion average open, current-month sales Curve opportunity pipeline for each day in the month over the past 6 months 14 Millions 12 ≒ Benchmark Won = the average 10 month-to-date won business for 8 each day in the month over the past 6 months 6 4 ≒ Current Pipeline + Won = the actual 2 month-to-date won business + the remaining open sales opportunity - 1 6 11 16 21 26 31 pipeline Benchmark Won ≒ Current Won = the actual month-to- Benchmark Pipeline+Won date won business for the current Current Won month Current Pipeline+Won Copyright Swayne Hill, 2012
- 3. Sales Pipeline Growth ≒ CM-Won = actual won business Forward 90-Day current month-to-date Sales Pipeline ≒ CM-Open = remaining open sales Growth opportunity pipeline with close dates 60 in the current month Millions ≒ CM+1 = open sales opportunity 50 pipeline with close dates in the next 40 month ≒ CM+2 = open sales opportunity 30 pipeline with close dates in the 20 month two months from now ≒ CM+3 = open sales opportunity 10 pipeline with close dates in the - month three months from now WK1 WK2 WK3 WK4 WK5 ≒ WKx = week number CM-Won CM-Open CM+1 CM+2 CM+3 Copyright Swayne Hill, 2012
- 4. Sales Cycle Friction Days-To-Win From ≒ Trailing 6-Month Average = Stage average # of days is takes 0 20 40 60 80 100 120 to close deals that you 01-Qualify Prospect 88 eventually win, from each stage, over the past 6 02-Secure Sponsorship 96 months 03-Secure DG Preference 85 04-Negotiate Business Terms 60 05-Negotiate Legal Terms 21 06-Pending Approval 9 Trailing 6-Month Average Copyright Swayne Hill, 2012
- 5. Sales Cycle Friction Days-in-Stage Trend ≒ CM-n, Stage x = the 120 trailing 6-months 100 average on number of 80 days it takes to move an opportunity to close/ 60 won for all 40 opportunities 20 eventually won (i.e., 0 this excludes close/lost and opps still open) CM-6 CM-5 CM-4 CM-3 CM-2 CM-1 Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Copyright Swayne Hill, 2012
- 6. Sales Cycle Friction Stage-to-Stage ≒ CM-n, Stage x = the Conversion trailing 6-months 120% average on 100% opportunities that 80% advance forward from that stage 60% ≒ Notice the dramatic downward trend in 40% 20% sales opportunities 0% CM-6 CM-5 CM-4 CM-3 CM-2 CM-1 moving forward from Stage 1 Stage 2 Stage 3 Stage 4 Stage 4 Stage 5 Stage 6 Copyright Swayne Hill, 2012
- 7. Risk Categories Copyright Swayne Hill, 2012
- 8. Stage Movement Risk Copyright Swayne Hill, 2012
- 9. MEASURING YOUR SALES OPPORTUNITY PIPELINE DataDrivenSalesManagement.com Swayne Hill, 2012 Copyright Swayne Hill, 2012