Project your volume andrevenue

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Project Your Volume & Revenue By documenting your sales process, you can estimate the revenue expected from the prospects in your pipeline. You can also determine how many leads you’ll need to generate through different marketing activities. When you have a sales process with conversion rates, you can generate accurate pipeline and revenue reports. For example, if you have 50 prospects at the presentation stage, your process may show that 20% will become customers. That means those 50 prospects should deliver 10 new customers. Your process will also tell you when that should happen and how much revenue those prospect represent. You can use a similar calculation to project results from new marketing campaigns. For example, if a campaign should produce 100 qualified leads, you can estimate the number of meetings, presentations, and new customers the campaign will generate.

Summary EXERCISE SUMMARY

When to Address

Who Should Participate

Where to Use the Results

After you’ve defined your sales process and conversion percentages at each step Business leaders: company founders, owners, presidents and vice presidents Marketing and sales leaders Finance Use your results in your revenue forecasts, marketing campaign projections and marketing plan & budget.

With a precise & well-­‐defined selling process, you improve your revenue forecasting and can make better decisions on what types of marketing campaigns to design to Why it’s Important hit your customer/revenue targets. Your marketing campaign design and media selection attach to the front end of your What Builds Upon it sales process to determine the number of leads that will flow into the process.

15 minutes to a few hours, depending on your situation

Sales Process  Project Your Volume & Revenue

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Timeframe to Completion Potential Business Impact Deliverable Next Steps

Medium

You’ll determine how many prospects and customers you’ll need to achieve your revenue goals for any given timeframe. Determine your reporting requirements.

Target Completion Date

PARTICIPANTS TASKS

PERSON RESPONSIBLE

DUE DATE

Notes Sales Process  Project Your Volume & Revenue

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Project Your Volume & Revenue

What to Complete

1. SET REVENUE AND CUSTOMER GOALS 2. CALCULATE PIPELINE REQUIREMENTS TO MEET GOALS

Where it Fits in Sales Process Determine Your Current Selling Effectiveness Define Your Customers’ Buying Process Determine Sales Tools & Literature to Deliver at Each Step Define Measurement Criteria Determine Conversion Criteria Set Revenue and Customer Goals Calculate Pipeline Requirements to Meet Goals Determine Pipeline Data to Track Define Reporting Requirements Diagnose Sales Process Problems Determine Solutions Further Define Qualified Leads

1. SET REVENUE AND CUSTOMER GOALS How many prospects do you need to put in the funnel in order to hit your annual goals? For this calculation you’ll need the following information: ANNUAL REVENUE GOALS

$$

b) Number of new customers

c) Average revenue per new customer (b/a)

a) Annual revenue from new customers

Sales Process  Project Your Volume & Revenue

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This tool is most relevant when you’re working on annual planning or creating a marketing campaign. You may choose to skip it now; you can also use general estimates now and enter more concrete numbers later. [Marketing Plan and Marketing Campaigns can help] For the calculations to work, you will need to have already completed 85-­‐A, which is covered in Exercise 81 – Define Your Sales Process.

2. CALCULATE PIPELINE REQUIREMENTS TO MEET GOALS

Enter the above information into 85-­‐B. The worksheet will calculate the number of new prospects you need to put in your pipeline on a monthly, quarterly and annual basis. To meet your sales goals, you need to hit the following: PROSPECT VOLUME MONTHLY QUARTERLY ANNUALLY PROJECTION Total new prospects needed for the pipeline Total deals to close Value of deals needed to ENTER the pipeline Revenue goal for the period Use 85-­‐B as your report.

Sales Process  Project Your Volume & Revenue

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