Best Practices of Analytical Sales Management

with Jeff Hoffman

Top Sales Reports That You Must Use Now

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Best Practices of Analytical Sales Management

Best Practices of Analytical Sales Management 1

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Defining Your Pipeline

Requires a consistent methodology or process

Requires a method to capture data

Totals are affected by activity; ratios are affected

through technique

Becomes an instant “snapshot” on the health of

your region

Successful with constant reinforcement

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Defining Your Pipeline

Identify and track each stage:

Communicate a common language and protocol

Establish a specific sales process

Measure your region’s sales cycle

Allow for laser-like focus and control

Anchor each stage to a “Milestone:”

Tie to EXIT CRITERIA

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Defining Your Pipeline

Establish target totals to each stage:

Base totals on previous pipelines that have

exceeded quota

Compare and contrast to other regions

Adjust once per Quarter (maximum)

Constant for every rep within region

Baseline for regional planning

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Defining Your Pipeline

Establish target ratios for each stage:

Determine conversion rates from stage to stage

Determine conversion rates to Compare and

contrast to other regions

Test against “3:1 rule”

Use as a predictor for long-range forecasting

Compare target ratios with target totals

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Inspecting Your Pipeline

Look for gaps

Compare team pipeline with individual pipelines

Record #s and ratios from week to week

Limit pipeline to activity with past 30 days

Purge!

Limit your inspection to one page

Inspire similar inspections at the rep level

A ruler for the day/week/month/quarter

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The Case For Activity Tracking

Puts you and the rep in control of the process

An objective measure of performance

Basis for individual and team commitments

Contributes to an activity-driven sales culture

Builds confidence

Improves self-sufficiency

Gives quick satisfaction

Easily customized for any rep based on your

specific goal

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“Inspect What You Expect” Summary…

Define your pipeline in four steps:

Identify the sales stages

Anchor milestones

Establish target totals

Establish target ratios

Pipeline Management requires constant

commitment and reinforcement.

Inspect pipeline for gaps

Inspire an activity-based sales environment

Dedicate separate time to proactive and reactive

duties

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Modern Forecasting Theory

“Credibility-based” Numbers-driven

Not tied to pipeline or specific deal

Adjustments made at every level

“Fact-based” Oppt-driven

Tied to actual deals and stages

Forecast is the same at every level

“Probability-based” Assigned probability to closure by rep

% is multiplied to TCV

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Forecasting Principles

Forecasting is not a sales stage

Address management expectations

Replace objective with subjective

Universal milestones are critical

Define “accuracy”

Establish consequences and rewards

Limit to 30 days

100% participation

Approach forecasting like “closing”

Top Sales Reports That You Must Use Now! 2

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“If you can't measure it,

you can't manage it!”

- Peter Drucker

1. Activities Against Goals

What is it? This report shows you how your employees are performing in a given period of time vs. individual goals

2. Pipeline Today

What is it? This report shows you the current state of your pipeline by close date and by the most important deals that merit attention.

3. Win/Loss Analysis

What is it? Shows you the count of your won vs. lost opportunities, the revenue won/lost, and the reason for lost.

4. Sales Funnel Conversions

What is it? • Shows you the # and % conversions at each step of your sales funnel.

5. Data-Driven Forecasting What is it? This forecast is data-driven and not a conventional finger-in-the-wind forecast that is based more on feelings of any individual rep

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