Managing The Sales Pipeline
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1 Managing The Sales Pipeline Presented by David R Ednie Accelerating Time to Revenue 1
2 Managing The Sales Pipeline Conventional Wisdom ABC > ABP C comes before P > P comes before C Top Sales Performers are great closers > great openers
3 Managing The Sales Pipeline THE SALES SUCCESS FORMULA Exposure x = Hit Rate SALES
4 Managing The Sales Pipeline Where do you spend your time? 3 Won t Buy 10 Opportunities 3 Will Buy 4 Undecided 4
5 Managing The Sales Pipeline Opportunity Qualification Rule 1: only pick those opportunities that you can close Rule 2: don t work on opportunities that won t close Rule 3: focus on Rule 1 5
6 Managing The Sales Pipeline Reasons why deals that won t close. 1. Competition: Who Why When How 2. No decision Operators & New Media Customers Budget Need Authority Access to Decision Maker 3. Know your personal success metrics A > P > S ABP. Always Be Prospecting Getting referrals is key 6
7 Managing The Sales Pipeline Indicators that the deal won t close: Driving Mechanism Urgency Broad awareness of requirement/procurement Clear Decision/Selection Process with timelines Identified DM and Sponsor Direct contact/established relationship with DM Openness and transparency You are considered as a member of client organisation You are included in decision making process Established privileged relationships across the organisation: Personal goals, values, worldview, etc. Family, personal situation, hobbies, etc. 7
8 Managing The Sales Pipeline Indicators become more obvious when you have a bigger Sales Pipeline 8
9 Managing The Sales Pipeline A > P > S Appointments or Initial Contact Prospect = someone who agrees to go through the sales process with you. Sales = signed contracts If your closing rate is 5 to 1, then every sales you make must be replenished by five new prospects not one if your prospect base is to remain full. Prospect daily and follow the Law of Replacement by replenishing your prospect base with a number that reflects your actual closing ratio. (That number will be more than one!) Analyze your numbers. Know your selling cycle. Avoid wasting time and energy on prospects who have gone well beyond that selling cycle without buying. If you manage your base of Prospects effectively you will be successful! 9
10 Prospect Management System Opportunity FA/IC Prospect Closed 10
11 Prospect Management System Active Prospect Levels 1 (25%) 2 (50%) 3 (90%) 11
12 Prospect Management System Opportunity FA/IC 1 (25%) 2 (50%) 3 (90%) Closed Closed: This is for customers Formal commitment to use what your organisation offers Signed contract Opportunity: People whom you have not yet made initial contact with No relationship Candidates Suspects Leads Referrals First Appointment/ Initial Contact: DMs whom you have scheduled an appointment for a specific date and time. DMs with whom you 1 st have Active Prospect had at least 2 good Column: conversations with. People who are in the process with us Have committed to the step Past FA/IC, working with you but not at 50% stage 2 nd Active Prospect Column Talking to the right person about our proposal and our proposal makes sense person is DM Right deal Right budget Right timetable Have a clear next step with DM 3 rd Active Prospect Column: Verbal agreement to buy 9 out 10 prospects should turn into business for you 12
13 Prospect Management System Example 1 1 (25%) 2 (50%) 3 (90%) 13
14 Prospect Management System Example 2 1 (25%) 2 (50%) 3 (90%) 14
15 Prospect Management System Example 3 1 (25%) 2 (50%) 3 (90%) 15
16 Prospect Management System Example 4 1 (25%) 2 (50%) 3 (90%) 16
17 Managing The Sales Pipeline Sales Effectiveness Improvement: Qualified Opportunities Win rate Deal Size + 5% + 5% + 5% -5% Sales Cycle Time = 22% Performance Improvement in Sales Effectiveness 17
18 Managing The Sales Pipeline Sales Management Wisdom Top sales performers = construction workers Sustainable performance in sales = building a Sales Pipeline Building a Sales Pipeline = Prospecting Key to Effective Prospecting = a Prospect Management System Your challenge: Put your Prospect Management System in place, now!
19 Questions & Answers Questions? 19
20 Contact Information: Sales Performance Motivation David R Ednie President & CEO SARL Ph: Fax: david@saleschannel europe.com Blog: Website: europe.com 20
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