Every organisation measures its cost of sales and tries to manage it to deliver improved margin for its stakeholders.
The Sales organisation is a significant part of the cost/overhead carried, but most organisations fail to manage effectively what it is their sales professionals are doing and whether they are spending their time pursuing good/qualified opportunities.
If a sales professional has a win rate of 1 in 5, they are winning only 20% of the time. Their pipelines of opportunities/leads are filled with clutter. They are wasting time and company resources pursuing prospects and deals they will never win – either because the customer has no intention of buying at all, or because for a number of reasons the customer isn’t going to buy from you
- You are too expensive, and it is only price that matters
- You don’t have a product or solution that the customer wants
- The customer has a preferred supplier and is just comparing prices
- The customer intends doing it themselves, so is seeking free consultancy
- They won’t sign up to your organisation’s terms and conditions
How many opportunities are qualified out of? Not enough. So why don’t sales professionals qualify out sooner? The psyche of a sales professional is one of optimism. They feel there is always a chance that the customer may buy, they feel that they have started so they must continue and prepare a proposal/quote regardless of the drain on their time and the inevitable increase in cost of sale. It is the operational teams that are pragmatists. They often know that they have prepared quotes/completed site surveys for this customer before and the customer never places an order. But the ever-optimistic sales professional follows that lead regardless.
It’s quality not size that matters
In terms of sales pipelines – it is the quality that matters. It is far better to have a smaller pipeline filled with opportunities that the sales professional has an 80% of winning, not a large one where they are only going to win 20%.
Managing the pipeline
You want believable data and forecast accuracy. Far better to focus on ensuring that salespeople are spending their time chasing qualified opportunities, spending their valuable time and company resources on the opportunities that they could win and making sure they do win them by focusing their energy on the areas that matter – systematic networking of the key influencers and decision-maker, better, more focused conversations to understand their needs; thereby building strong relationships, etc.
Forecast accuracy is key
Measuring win rates is essential to see which sales people are wasting resources and increasing the cost of sale. Ensure all leads/prospects are qualified properly and consistently.
How can Win Maestro help?
Win Maestro enables your sales teams to qualifier better and win more. It also enables sales managers to track progress and have confidence in their sales forecasts. As well as understanding whether your pipeline has the scale and quality to achieve your targets. Management Dashboards give instant visibility of the team’s sales performance. View sales progress, and ensure you are on track to achieve your sales targets. Real-time dashboards show key sales metrics, tracking progress against targets.