Tag Archive for 'sales pipeline'

Do you know how to load your Sales Pipelines?

Here’s an ancient marketplace maxim: Selling is a numbers game.

A maxim is a generally accepted truth and this is one because of two realities:

1.  There are hundreds – if not thousands – of things that can cause a fully qualified prospect to not complete a transaction, at least not on your time parameters.

2.  Regardless of how many bumps you encounter on the path to a signed contract, it’s still your job to produce enough gross profit from sales revenue to stay in business.

Enter the sales pipeline: a planning concept that helps managers and salespeople forecast sales for any given period – week, month, quarter or year. Think of your sales pipeline as overhead plumbing with faucets positioned at the time intervals your operation requires. And from these faucets you draw the mother’s milk of any business – sales revenue.

But there’s one pesky thing about sales pipeline faucets: they all come with screens that only allow sales from qualified prospects pass through, while poorly developed prospects are blocked. So if you’re counting on revenue pouring out of a faucet when you turn the handle on the day you need sales, you must load only qualified prospects into your pipeline to begin with.

A qualified prospect has answered enough questions – directly or through research – to allow you to determine that they will likely purchase what you sell from someone in the forecastable future. Before you place a qualified prospect in the pipeline, you must know at a minimum:

· What’s left to do for them – demonstration, trial, proposal, final close, etc.;

· Anything else that has to be done to move them to customer status.

Your appraisal of all of this information will help you forecast which faucet you should expect a particular sale to pour out of this Friday, next week, next month, next quarter. Once in the pipeline, a prospect is either on track to become a sale, a lost sale, or a forecasting mistake to be removed.

Alas, in the absence of professional sales management, poorly trained salespeople will try to forecast low-quality prospects. And any company that counts on such practices is headed for a cash flow crisis and ultimate business failure. Not because the product wasn’t good, or the price was too high, or because of Amazon. But because the sales team didn’t load the sales pipeline with enough qualified prospects.

At this point, let’s refer to The Bard. In Act I, Scene III, of Hamlet, arguably Shakespeare’s most important work, Polonius famously says to his son, Laertes, “This above all, to thine own self be true.” If your sales team is honest with each other and management about a prospect’s qualified progress to faucet-conformity, you’re setting yourself up for success. If not, well, you know.

Sales has been and always will be a numbers game. But in the Age of the Customer, it’s increasingly becoming more of a quality prospecting game. Consequently, how much revenue you draw from your sales pipeline depends on the two elements of the 21st century sales success calculus: quantity x QUALITY = your ultimate sales performance.

Here’s Blasingame’s Law of Sales Pipeline Success: Load the pipeline with enough (quantity) qualified prospects (quality) to flow through the faucets of your sales pipeline whenever you need them (success).

Write this on a rock … Load your sales pipeline with quantity and quality, and to thine own self be true.

Blasingame’s Law of Sales Pipelines

Here’s a sales maxim: Selling is a numbers game. Even though there are a thousand things that could prevent a sale from being completed, it’s still your job as a small business owner to close enough sales to keep your doors open. Enter Blasingame’s Law of Sales Pipelines.

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Blasingame’s Law of Sales Pipelines

Selling is a numbers game. Do you know how to manage your sales to plan future revenue? Watch as Jim explains the sales pipeline and how to use it to forecast sales, revenue and cash flow.

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Building and loading your small business sales pipeline

There are many maxims in professional selling, but perhaps the most important holds that selling is a numbers game. This is a generally accepted truth because of two realities:

 

1.  There are hundreds, nay thousands, of things that can go bump in the night and cause a fully qualified prospect to not complete a transaction, at least not on your preferred timeframe.

 

2.  Regardless of all of the bumps on the path to a signed contract, it’s still your job to produce enough sales revenue to stay in business. 

 

Enter the sales pipeline.

 

A pipeline is a planning concept that helps managers and salespeople forecast sales for any given period: week, month, quarter or year.  Think of your sales pipeline as overhead plumbing with faucets positioned at those calendar intervals, as your business model requires. From these faucets you draw the mother’s milk of any business – sales revenue.

 

Pipeline faucets have special screens that only allow a sale to pass through. So into the pipeline you load only those prospects of which you have asked enough questions to determine that, in a reasonable amount of time, what they want and your ability to deliver will combine to produce a faucet-conforming sale. Until then, a prospect is either on track to become a sale or a forecasting mistake to be removed.

 

As you record a prospect’s entry into the pipeline you must include what you know about their stage of decision-making, plus what you have to do to move them to customer status. Identifying what’s left to be done with each prospect – demo, trial, proposal, final close, etc. – will help you forecast which faucet – this week, next month, etc. – you can expect a sale to pour out of.

 

At this point, let’s refer to The Bard. In Act I, Scene III, of Hamlet, arguably Shakespeare’s most important work, Pelonius famously says, “This above all, to thine own self be true.” If you aren’t completely honest about a prospect’s progress to customerhood, you’re only setting yourself up for an unacceptable flow of sales as you turn on future faucets.

 

How much and how often you draw revenue from your sales pipeline depends on the twin standards of sales success: quantity and quality. You must load the pipeline with enough prospects on Monday (quantity) to have enough qualified prospects to close on Wednesday (quality) so that after all those “bumps” happen you can still draw the sales you need from your pipeline on Friday (success). 

 

Finally, I’ll leave you with Blasingame’s Law of the Sales Pipeline:  “Quantity, quality and to thine own self be true.”

Recently, on my radio program, The Small Business Advocate Show, Skip Miller and I talk about the pipeline development process. Skip is President and founder of M3 Learning, and author of a number of books on sales and sales management. He is also a long-time member of my Brain Trust. Take a few minutes to listen my visit with Skip and leave your comments on how you’re building and loading your sales pipeline. Listen Live! Download, Too!




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