How to Use Pipeline Metrics to Meet Your Sales ...

Quoted on this wiki

Every place a page here uses this source, in the order the words come in it.

1. “It’s not enough to have a quota or even set goals for yourself—you need to know exactly what to do daily to accomplish your goals.” It’s a tool to help sellers break down their numbers and eliminate guesswork. You can download it as part of our Sales Prospecting Made Simple Toolkit—it only takes a few minutes to download and fill out.  Let’s take a closer look at the tool and what you need to get started.  Pipeline Metrics by the Numbers Before you can crunch any numbers, there are a few preliminary prospecting metrics you’ll need to plug in to get started, each represented by one of the green-colored cells:  Targets  Targets convert to meetings  Meetings convert to pipeline opportunities  Pipeline opportunities convert to proposals  Win rate on proposed opportunities  Average size of sales  Revenue from prospecting  Revenue from other sources   Targeted total revenue  At first, start by putting in any number of prospects—50, 200, 500—and fill out the rest of the data with guesses, then see what happens. Get a feel for the tool and how various changes affect the outcomes.  If you don’t have a basis to make guesstimates, talk to experienced peers and your sales manager to find a starting point. Later, you can test the numbers with your manager or coach to solidify your plan.   In any case, once you input these initial numbers, let the calculator take care of the rest. What happens once you get a meeting? Read 7 Steps to a Successful Sales Meeting. >> How to Analyze Your Sales Prospecting Numbers (Example) Let’s take a closer look at the tool and share an example of how it works.  Assume you need to sell $2 million by the end of the year. You believe, based on your repeat business data, that you can rely on existing customers to make up about $1.2 million of revenue. This means you need to generate $800,000 in new business. Your average sale size is $75,000, which means you need 11 new business closes.   Since you know your average win rate on a proposal for new business is 50%, you know you need 22 proposals.

   In Activity-to-pipeline math

Quotes are verbatim and belong to their publishers. Where a quote has been translated, the original wording is kept below it.