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.
Corporate Profile 47Billion Information Technology
Pipeline Management Best Practices
1. Proven Sales Pipeline Management
and Forecasting Best Practices for
Sales Managers
Tracey Kaufman
Cloud9 Analytics
Sr. Director of Customer Experience
August 2010
Cloud9
2010 1
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 2
3. The PROBLEM
Only 51.5% of Reps Only 78.5% of Plan Only 23% of Firms have a
Are Making Quota Attainment is Accomplished Dynamic Sales Mgmt. Process
29.9% 31.3% 27.2%
No Decision Lost
Selling w/ Reps 21.6%
Coaching Reps
14.7%
Pipe / Forecast MGMT
44.8% 20.3%
Internal Meeting &
Won
15.8% Management Tasks
Other (Train / Travel)
Only 44.8% of Forecasted 50% of Time Spent on
Deals Are Won Revenue GEN
Cloud9
2010 Source: CSO Insights: May 2010
4. Which MEANS
You’re missing out on REVENUE & CRM isn’t ENOUGH
Supports business NOT management processes
4.0%
20.1% Other
Use Sales Analytics 30.4%
Use Spreadsheets
45.5%
Use Core CRM System
45% use CRM to Manage
Sales Forecasts
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2010
5. The GOAL
INCREASE Bottom Line Revenue & Predictability
Improve Pipeline Velocity:
(# of deals) x (win conversion rate) x (avg. deal size)
Average selling time in days
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2010
6. Example of VELOCITY
Let’s Calculate Monthly % CHANGE in Velocity
Or Variance–Pipeline Acceleration / Deceleration
6
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2010
7. The SOLUTION
BETTER Pipeline Management
Detect & Correct vs Measure & Punish
Activity x Proficiency = Sales
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2010
8. Use ANALYTICS to:
Be PROACTIVE
• 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
8
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2010
9. Pipeline Management Best Practices
1 Implement a DYNAMIC
Pipeline Mgmt. Process 3 Leverage Pipeline
ANALYTICS
2 Escalate CRM Visibility
ADOPTION for
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2010
10. Running a Weekly Meeting
Ask YOURSELF:
• 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)?
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2010
11. Performance and Coverage
Compare current performance against quota and forecast
Drill into details
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2010
12. What’s Changed
Review pipeline changes (won, lost, adjusted), uncover exceptions, identify risks and develop next steps
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2010
13. Weekly Meeting Example
Do Q/Q comparison, identify risk areas & make course corrections to refocus resources
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2010
14. 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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2010
15. Results You Can Expect
VELOCITY & REVENUE Improvements
Potential of 10% increase in
“Adaptable companies with a revenue via improved sales
dynamic sales process reported pipeline/funnel management
30% higher forecasted deal 2007 McKinsey study
conversion rates than average”
2010 CSO Insights Report
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2010
16. C9 Customer Success Stories
Increased forecasted deal
closure by 5% resulting in
$400K per quarter
Returned 80 hours per
quarter in selling time back
to Sales Management
Forecast accuracy improved
by 50% resulting in better
resource allocation
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2010
17. 3 Things You Can Do Today
1 Measure conversion rate, Average deal size & Sale cycle days your business
# Deals, Win
the key pipeline velocity drivers for
2 Review pipeline regularly, Management Process to improve velocity drivers
Adjust your Sales
Proactively identify risks & Drive desired behaviors
3 Use Analytics toagainst goals and forecast,meetings andchanges, Do comparisons
Review performance
inform your weekly
Review pipeline
1:1 coaching sessions
Cloud9
2010