How do you know if you've got enough Sales Pipeline to cover your Sales Targets? Learn about how to create a simple Weighted Sales Pipeline Model and answer the question for yourself. More at http://datadrivensalesmanagement.com

1. Sales Pipeline
Development
DataDrivenSalesManagement.com
Copyright Swayne Hill, 2012

2. Sales-Cycle Stage
Conversion
110
90%
• Win Rate = the percentage
of $$$ we convert to
Closed/Won from each
67% Sales Stage. As the Sales
80
Stages progress, the
55%
likelihood of winning
45% increases
54
• Days to Win = the average
22%
28
number of days it takes to
convert to Closed/Won
15
from each Sales Stage (for
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5
those deals we win).
Win Rate Days to Win
Copyright Swayne Hill, 2012

3. Weighted Sales Pipeline
Distribution
$600,000 • Weighted Sales Pipeline =
Sum(Raw Sales Pipeline * Win
Rate) for each Sales Stage.
$461,800
$450,000
•
$417,800
Example - this chart compares
$350,300
the cumulative Sales Target at
$300,000 each date range to the
cumulative Weighted Sales
Pipeline.
$150,000 $135,000
• According to the data, we’re
short this month, good shape
$0
30-Day 60-Day 90-Day 120-Day
to catch up next month but in
Weighted Pipeline Sales Target
trouble 3 and 4 months out.
Copyright Swayne Hill, 2012

4. Sales Pipeline Coverage
Good
(To Sales Target) Gap
$75,000
• Gap Coverage = Cumulative
$50,300 Sales Target minus (-)
$37,500 Cumulative Weighted Sales
Pipeline for each time period.
$0
-$15,000
• According to the data, we’re
-$37,500 -$32,200 in good shape for the next 60
days, but there is a significant
-$75,000
gap between Weighted
Pipeline and our Sales Target
-$112,500
in the 90 & 120-day range.
•
-$138,200
Bad -$150,000
30-Day 60-Day 90-Day 120-Day We need to grow the sales
pipeline.
Gap Coverage
Copyright Swayne Hill, 2012

5. Weighted Sales Pipeline
Growth Trend
$790,000
•
$800,000
$745,000 Sales Target = 120-day sales
$690,000
quotas
$700,000
• 120-Day Pipeline = Total
Weighted Sales Pipeline
$600,000
$570,000
made up of deals with a
$500,000
$461,500 Close Date in the 120-Day
window.
$400,000
• Trend on Weighted Sales
$300,000
Jan Feb Mar Apr
Pipeline growth is negative,
Sales Target 120-Day Pipeline
indicating an urgent need
for action.
Copyright Swayne Hill, 2012

6. Weighted Sales Pipeline
Growth Trend
•
$800,000
$200,000 Current = Current Month
$175,000
$600,000
$140,000
• CM+1 = Next Month
$300,000
$280,000
$150,000
$100,000
• CM+2 = Current Month + 2
$400,000
$250,000
$100,000
• CM+3 = Current Month + 3
$230,000
$200,000 $180,000
• Drilling down on the Weighted
Sales Pipeline growth, it’s clear that
$200,000
CM and CM+1 remain at a pretty
$150,000 $140,000 constant level but at the cost of
$90,000
$110,000
diminishing long-range sales
$0 pipeline growth. We’re not
Jan Feb Mar Apr
replacing the sales pipeline as fast
Current CM+1 as we’re consuming.
CM+2 CM+3
Copyright Swayne Hill, 2012

7. Weighted Sales Pipeline
Source Trend
•
$500,000
Sales = Weighted Sales
$415,000
$400,000 Pipeline sourced by the
$375,000 Sales Rep (referrals, up-
sell, networking, etc.)
$265,000
$250,000
• Marketing - Weighted
Sales Pipeline pass from
$140,000
Marketing to Sales Rep
$125,000
$61,500
• Chart indicates source of
$0 the pipeline growth issue
Jan Feb Mar Apr May
lies with Sales Rep
Sales Marketing
Copyright Swayne Hill, 2012

8. Sales Pipeline Weighting
& Distribution
Average
Raw Weighted
Win Rate Days to 30-Day 60-Day 90-Day 120-Day
Pipeline Pipeline
Win
Stage 1 22% 110 $200,000 $44,000 $44,000
Stage 2 45% 80 $150,000 $67,500 $67,500 $67,500
Stage 3 55% 54 $160,000 $88,000 $88,000 $88,000 $88,000
Stage 4 67% 28 $190,000 $127,300 $127,300 $127,300 $127,300
Stage 5 90% 15 $150,000 $135,000 $135,000 $135,000 $135,000 $135,000
$850,000 $461,800 $135,000 $350,300 $417,800 $461,800
Sales
$150,000 $300,000 $450,000 $600,000
Target
Coverage
-$15,000 $50,300 -$32,200 -$138,200
Gap
Copyright Swayne Hill, 2012

9. Sales Pipeline
Development
DataDrivenSalesManagement.com
Copyright Swayne Hill, 2012