Measuring The Results of a Sales Plan
One of the problems with processes that take a long time to complete is tracking progress. Given that the average sales cycle (from the time of first contact) is between 9 and 18 months long, it is no wonder that executives often have issues with sales progress reporting.
If the discrete activities of the sales process are separated out and clearly defined, reporting on sales progress is as simple as defining the movement from one stage to the next.
Here are some guidelines:
1. 10% of raw leads convert to "Qualified Prospects"
2. 30% of "Qualified Prospects" convert to "Sales Pipeline"
3. 30%+ of "Sales Pipeline" will convert to "Closed-Won"
These guidelines assume that a strong sales process is in place and running effectively. If the process is followed, conversion from one stage to the next will be clear and easily reported.
Sales progress reporting is a difficult activity to maintain, mostly due to the variable nature of the sales process. Just as in a manufacturing process, there are times where the sales cycle halts, making reporting somewhat bland. A strong sales process can shorten the sales cycle considerably, but control of the timing of close ultimately rests with the buyer. A strong sales progress reporting system will reveal all of the steps of the process and stage of completion. No salesperson can guarantee the outcome of a sale until the order is placed, but all salespeople should be able to demonstrate that all of the critical steps of the sales process were completed.
