A robust sales process is one of the most valuable tools available for your business.
But to get real value from your sales process, you need to analyse and measure the performance of your pipeline, accurately.
Here are three key reasons why…
1. Identify leaks and plug them
It’s inevitable. Your sales pipeline will leak.
That’s because a percentage of prospects will drop out for reasons such as insufficient of budget, wrong timing, or lack of conviction at the solution you offer.
It’s important to measure the fallout at each stage of your sales pipeline. Then, armed with these insights, you can look for patterns. In particular, can you identify a particular stage where prospects get stuck? Once you know this you can review your sales process. For example, could your sales playbook be tweaked to reduce fallout? Could a new sales tactic or an additional stage reduce your leakage?
Driving prospects into your sales pipeline takes time and incurs a cost. But when you identify, quantify, and then plug leaks, you’ll find you can increase your conversion rate whilst reducing your cost per sale.
2. Boost the accuracy of your sales forecast
Too many businesses take risks with their sales forecasting.
Instead of investing in tools, resources and processes to predict future sales, accurately – they rely on guesswork and hunches.
But it doesn’t have to be this way…
Interestingly, past performance is a very good indicator of future results. What’s more, your sales pipeline already contains the facts and figures you need to confidently forecast future sales. For example, if you know your average closure rate, you can predict future sales based on the leads currently in your pipeline. Or working backwards from your sales target, you can predict how many leads you need to hit your target.
You don’t need to rely on luck. Instead, extract the data from your sales pipeline and start forecasting with confidence.
3. If you can’t measure it, how can you manage it?
If you’re serious about managing your sales pipeline, you need access to robust metrics and analytics.
That’s because data will provide the hard evidence you need to back up your decisions. For example:
- If you know which marketing strategies bring in the best leads, you can justify additional investment
- If you know how individual reps are performing, you can spread best practice and coach individuals who need support.
- If you know prospects get stuck in a particular part of your sales pipeline, you can review sales strategies and increase pipeline velocity
A measurable sales pipeline could transform your business.
With a great CRM -- one that is built to deal with today’s sales methods in mind, you should be able to easily attain these goals.
When you have confidence in the performance of your sales pipeline, you’ll be amazed what a difference reliable data can make to forecasting revenue and to lowering the risk in your business.
Does your CRM provide the sales analytics you need? Tell me your stories in the comments.
Richard Young, Managing Director Pipeliner CRM