Measuring Your Sales Opportunity Pipeline
9
Copyright Swayne Hill, 2012 MEASURING YOUR SALES OPPORTUNITY PIPELINE DataDrivenSalesManagement.com Swayne Hill, 2012
-
Upload
swayne-hill -
Category
Business
-
view
3.368 -
download
0
Transcript of Measuring Your Sales Opportunity Pipeline
Copyright Swayne Hill, 2012
MEASURING YOUR SALES OPPORTUNITY PIPELINE DataDrivenSalesManagement.com Swayne Hill, 2012
Copyright Swayne Hill, 2012
Sales Pipeline Growth (Erosion)
-
2
4
6
8
10
12
14
1 6 11 16 21 26 31
Mill
ions
Pipeline Erosion Curve
Benchmark Won
Benchmark Pipeline+Won
Current Won
Current Pipeline+Won
• Benchmark Pipeline + Won = the average open, current-month sales opportunity pipeline for each day in the month over the past 6 months
• Benchmark Won = the average month-to-date won business for each day in the month over the past 6 months
• Current Pipeline + Won = the actual month-to-date won business + the remaining open sales opportunity pipeline
• Current Won = the actual month-to-date won business for the current month
Copyright Swayne Hill, 2012
Sales Pipeline Growth • CM-Won = actual won business
current month-to-date • CM-Open = remaining open sales
opportunity pipeline with close dates in the current month
• CM+1 = open sales opportunity pipeline with close dates in the next month
• CM+2 = open sales opportunity pipeline with close dates in the month two months from now
• CM+3 = open sales opportunity pipeline with close dates in the month three months from now
• WKx = week number -
10
20
30
40
50
60
WK1 WK2 WK3 WK4 WK5
Mill
ions
Forward 90-Day Sales Pipeline
Growth
CM-Won CM-Open CM+1 CM+2 CM+3
Copyright Swayne Hill, 2012
Sales Cycle Friction • Trailing 6-Month Average =
average # of days is takes to close deals that you eventually win, from each stage, over the past 6 months
88
96
85
60
21
9
0 20 40 60 80 100 120
01-Qualify Prospect
02-Secure Sponsorship
03-Secure DG Preference
04-Negotiate Business Terms
05-Negotiate Legal Terms
06-Pending Approval
Days-To-Win From Stage
Trailing 6-Month Average
Copyright Swayne Hill, 2012
Sales Cycle Friction • CM-’n’, Stage ‘x’ = the trailing 6-months average on number of days it takes to move an opportunity to close/won for all opportunities eventually won (i.e., this excludes close/lost and opps still open)
0
20
40
60
80
100
120
CM-6 CM-5 CM-4 CM-3 CM-2 CM-1
Days-in-Stage Trend
Stage 1 Stage 2 Stage 3
Stage 4 Stage 5 Stage 6
Copyright Swayne Hill, 2012
Sales Cycle Friction • CM-’n’, Stage ‘x’ = the trailing 6-months average on opportunities that advance forward from that stage
• Notice the dramatic downward trend in sales opportunities moving forward from Stage 4
0%
20%
40%
60%
80%
100%
120%
CM-6 CM-5 CM-4 CM-3 CM-2 CM-1
Stage-to-Stage Conversion
Stage 1 Stage 2 Stage 3
Stage 4 Stage 5 Stage 6
Copyright Swayne Hill, 2012
Risk Categories
Copyright Swayne Hill, 2012
Stage Movement Risk
Copyright Swayne Hill, 2012
MEASURING YOUR SALES OPPORTUNITY PIPELINE DataDrivenSalesManagement.com Swayne Hill, 2012
