Kickfannie SalesEdge

by Allan Barmak for Kickfannie Sales & Marketing

Our sales team’s pipeline isn’t consistent. How do we fix that?

One of the most challenging things that Sales Managers often face is having a full pipeline. But that’s only half of the story. In addition to having a full pipeline, the manager also requires an accurate pipeline. Too often, salespeople don’t have a realistic handle on where a particular prospect is in the pipeline. It might be because they want the leadership to think that they are closer to hitting goal than they realistically are, or it might be because they honestly think that a potential customer is actually that close to buying, or it could be anything in between. The key to solving these problems is a three-step process which will put you on track to having enough accounts in your pipeline which will enable you to hit goal every time.

The first step is for you, the manager, to clearly define what would put a prospect at any of the different stages of the pipeline. I recommend that a pipeline be divided into four parts- 90% likelihood to close within 30 days, 70%, 50%, and 10%. You need to first explain to your salespeople why a prospect should be listed at each stage. Just to throw some suggestions out there, I would put someone at 90% if you have given the pitch, sent them a contract, have a verbal commitment but no signature. 70% is a favorable response to the proposal and they have asked for a contract. 50% might be a business that has seen the proposal, but has not responded. 10% is a business who has seen the proposal but is estimated to close more than 30 days from now. Of course, I encourage you to build the definitions for these stages based on what will make you successful.

The second step is to tie the pipeline to the monthly or quarterly goal. The weighted total of a salesperson’s pipeline should be at least equal to 125% of the goal. To define “weighted total”- each entry in the pipeline should list the monthly revenue that the company would get from the sale. In a simplified example, if a salesperson is pitching a 3-month, $30,000 deal, then the company will get $10,000 each month. The weighted total factors in where that company was put in the pipeline. If the company is at 90%, then $9,000 would be included in the weighted total (90% of $10,000). If the prospect was at 50%, then $5,000 would be included. When every entry in the pipeline is added together, it should total at least 125% of goal.

The final step in the process is what delivers the consistency that all sales executives look for. Limit the top two categories of your pipeline (the example above, it’s 70% and 90%) to only five entries per section. This will prevent the salesperson from listing everyone he has ever pitched to in the “90%” category. Like I said in the first step, it’s about clearly defining the pipeline. By combining this with what you accomplished in step two, you will be forcing each member of the sales team to have enough accounts in the pipeline to reach 125% of goal. Now, by limiting entries at the top of the pipeline, you are incentivizing the behavior that you want, which is a strong base of many different prospects. It may take some time for your team to manage with the new pipeline rules but you will soon find that you will have a more consistent pipeline which will help you blow away your sales goals.

About the Contributor

Allan is a national speaker and author of “The Accidental Salesperson”. His live training events have been sold out all over the country. He leads a sales consulting and training firm which leverages his 20 years of sales experience in digital media. Over the years, he has worked with a variety of different companies, across a wide range of industries, helping each of them expand their sales operations by optimizing existing revenue streams as well as building new ones.

Throughout his career, he has an extensive history of success selling online advertising, including 10 years at AOL, and a total of 7 years with other digital start-ups.

For additional information on Allan check out his website at www.barmakgroup.com

Submit Questions for Allan to answer at SalesEdge@kickfannie.com