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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