pipeline momentum english

PIPELINE MOMENTUM

Agenda

1. Pipeline Definition and Objectives 2. Basic ”Stages” of the Sales Process 3. Sales Pipeline Management 4. Tips for Accelerating Pipeline Momentum

The Sales Pipeline is a visualization of the sales process based on its progression throughout the transactional sales cycle.

The Pipeline is one of the most important sales tools as it helps the sales team understand the true potential of its prospects and customers and helps improve sales effectiveness.

The Sales Pipeline should include ALL pre-qualified opportunities to maximize closing ratio and forecast accuracy.

PIPELINE DEFINITION

• Improve Sales Management Effectiveness • Improve Opportunity Closing Rate and Time • Close More & Bigger Opportunities • Improve Forecast Accuracy • Maximize Sales Best Practices

PIPELINE OBJECTIVES

Stage 1: Prospecting

Stage in which we identify and qualify prospects (hunters) and / or develop opportunities from existing accounts (farmers).

CRM: During this stage we measure the number of calls, visits, conversions and new opportunities. Remember….If there are no prospects, there is no pipeline!

BASIC STAGES OF THE SALES PROCESS

Stage 2: Qualification

During this stage we validate that the customer has a real purchase potential.

• Budget • Authority • Need • Timeline

This process serves as a filter to identify customers with most potential (readiness to buy) and establish opportunity follow-up plans, priority and focus.

CRM: During this phase we monitor the adherence to the qualification process and we make a "Ranking" of prospects to prioritize those with the greatest potential. It is also important to measure the conversion rate from prospects to opportunities.


Stage 3: Needs Assessment

At this stage, the goal is to learn more about the true customer needs and wants. Our mission is to find the right product or service for the potential customer. The needs assessment effort is key to reducing lost deals and objections at closing time.

Do not limit your efforts to uncover traditional needs, but also invest time to understand personal goals, preferences, desires and even customer dreams. Gather enough information to know them better and become an indispensable value-add ally. As a benefit you may also impress the customer as they get to experience a legitimate interest from you!

CRM: During this phase we monitor adherence to the process of capturing personal, business, product and service needs.


Stage 4: Value Proposition

At this stage we strive to offer the right product or service with benefits and value that far exceeds customer expectations. We can only achieve this if we thoroughly understand their needs and wants.

Our goal is to show the customer a better future with our company as their indispensable value-added ally.

CRM: At this stage we monitor the implementation of best practices in value proposition design (Best-Fit, ROI, TCV, etc.) and reconfirm clear identification of the decision maker(s) and the decision-making process (B2B)


Stage 5 : Negotiation

When the customer seeks to adjust the terms and/or conditions of the proposition, a critical negotiation process begins.

The key to this process is to apply the basic principles of pro- active listening, assimilation, empathy and ”Win-Win” Objection Handling strategies.

CRM: At this stage we monitor the implementation of closing techniques, stage duration and include management/mentor coaching and involvement as required.


Stage 6: Closing

This is the final stage of the sales pipeline and it is met when the customer accepts the order, purchase or service. Congratulations!

If the deal is lost (rejected), please be sure to capture the ”Lost Reasons and Causes” and adopt solutions as part of your on-going sales strategy and methodology.

CRM: At this stage we measure closing time, opportunity aging, closing rates and adherence to the process. Ensure that best practices have been used, collected, shared and automated as applicable.


SALES PIPELINE MANAGEMENT

Sales Pipeline

Opportunity Contact Name Sales Stage Duration

Forecast Amount

Probability

Weighted Forecast

Expected Close Date

Aging Sales Rep Next Steps Closing Plan Competitors

Q2 Deals $377,000 $316,950

Company A Sally Jones Negotiation 10 $128,000 90% $115,200 05/23/11 15 CraigMtg Decision Maker Case Studies,

References and CEO Involvement

Competitor 1 and Competitor 3

Company B Horace Shackley Negotiation 3 $100,000 90% $90,000 05/30/11 30 Larry DM Persuasion Get Access to DM,

Avid Golfer (Round)Competitor 1, Competitor 9

Company C John Smith Value Proposition 120 $84,000 75% $63,000 05/27/11 425 Sandra Deliver Proposal ROI Analysis and

Steering Committee Presentation

Unknown - RFP

Company D Jane Doe Value Proposition 5 $65,000 75% $48,750 06/30/11 10 Craig

Review Proposal, Last Minute Changes

Connect the Dots with our COO, well connected to DM

Competitor 1

Q3 Deals $248,000 $124,000

Company E Ralph Finley Prospecting 1 $75,000 10% $37,500 06/15/11 5 Craig Schedule Meeting TBD Blank = Need to Ask

Company F Jennifer Mosely Qualification 2 $125,000 20% $62,500 06/03/11 7 Sandra Involve Procurement, Seem to be key DM´s

TBD Competitor 1 y Competitor 4

Company G Grace Chu Needs Assesment 6 $48,000 30% $24,000 06/10/11 8 Larry Schedule Needs

Assessment CallTBD Competitor 1

SALES PIPELINE MANAGEMENT

Are Stages Coherent with Next Steps? What is Stage Duration Telling Us? Is Closing Date Consistent with Stage? Are Next Steps Actioned? Is Closing Plan Real? Who is my Main Competitor? How Much Revenue can I count on for June? Who is the Sales Exec with the Most Deals? Which Deals Need Management Involvement?

TIPS FOR ACCELERATING PIPELINE MOMENTUM

Standardize Your Best Practices:

The most effective sales teams invest time in identifying best practices and defining standardized sales processes. Great teams have sales processes (Methodologies) with clearly defined steps, activities and outputs that are universally understood by every team member.

• Train your sales team in the "Why" of your processes • Automate your best practices with workflows (automated tasks) Use ”Approvals”

to ensure compliance (ex: discounts) • Validate that the minimum requirements are met (validation rules) • Generate notifications involving stakeholders in a timely manner (e.g.

Management is notified at negotiation, not at closed lost stage)

Measure Efforts , Process Adherence & Results:

The most successful sales leaders measure all aspects of their sales process to make better decisions and act pro- actively rather than re-actively.

• Sales Pipeline * • Top 10 Opportunities * • Wins vs. Objectives * • Number and Types of Prospects • Prospect Ranking • Opportunity Conversion Rate (% Prospects= > Opportunities) • Adherence to Best Practices (Key Processes / Methodology) • Closing Rate (% Wins Opportunities) • Forecast Accuracy • Lost Sales Analysis (why are they lost ?) • Even measure " tactical activities " ... push new products, up-selling , cross -selling, etc.


Drive Continuous Improvement:

Periodically review all aspects of the process and focus on team/individual results to promote collaboration & collective intelligence gathering.

• Use collaborative selling methods. Example: Real-time collaboration with internal, external (partners, channels , contractors ) and customers (Chatter and Communities)

• Use an Idea Portal to promote internal and external innovation (Ideas) • Involve key stakeholders (Marketing, Management and Customer Service) to develop joint initiatives

(Campaigns , TTR (Time to Revenue) Acceleration, Process Improvements , etc.) • Measure Overall Commercial Performance (Work.com ) • Promote the professional development of your teams with recognition, training opportunities,

certification & incentives (Work.com)

Most best practices are born from within. Unlock the full potential of your organization!


THANK YOU

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Doble Group, LLC

Doble Group, LLC is a boutique consulting firm that focuses on improving commercial business results through CRM and Learning solutions and the alignment of the organization, its processes and teams for success. We deliver our services through highly customized consulting, training and coaching programs and the world’s #1 CRM technologies.