“It’s common for leaders to measure their sales pipelines by the probability of the deal closing. And a common mistake. Probability of close is a subjective measurement that requires the sales rep to make a judgment about their chances of making a sale. It requires interpretation, bias and is ripe for abuse. Instead, you should be measuring the progress of a prospect through your sales pipeline, with each stage representing the percentage of the way through the pipeline that the opportunity has reached. A complete sale is defined as one that is either closed or lost.”
First, kudo’s to whomever thought it was great design to put white text on a powder blue Pipeline Strategy. :(
Second, this is a fantastic example of how to move beyond the “I think this is a done deal and it’s worth $1 kajillion in revenue…” to a process with some rules, parameters and critera so you can get a clearer understanding of the pipeline.
I have helped a few businesses create similar processes – with a few less stages based on their business. (And we used a font color that was easier to read…okay, sorry, I will stop harping on that.)
Have you set up anything similar to this? How’s it working? If you haven’t, do you think this could help?
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