InsightSquared had the opportunity to sit down with renowned sales training consultant Jeff Hoffman and some of Boston’s finest sales managers and sales VPs to discuss a major sales management struggle over breakfast: Objective sales pipeline management and sales forecasting.

1. Best Practices of Analytical
Sales Management
with Jeff Hoffman

2. Top Sales Reports That You Must Use Now
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2
Best Practices of Analytical Sales Management

3. Best Practices
of
Analytical Sales
Management1

4. 4
Defining Your Pipeline
 Requires a consistent methodology or process
 Requires a method to capture data
 Totals are affected by activity; ratios are affected
through technique
 Becomes an instant “snapshot” on the health of
your region
 Successful with constant reinforcement

5. 5
Defining Your Pipeline
Identify and track each stage:
 Communicate a common language and protocol
 Establish a specific sales process
 Measure your region’s sales cycle
 Allow for laser-like focus and control
Anchor each stage to a “Milestone:”
 Tie to EXIT CRITERIA
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6. 6
Defining Your Pipeline
Establish target totals to each stage:
 Base totals on previous pipelines that have
exceeded quota
 Compare and contrast to other regions
 Adjust once per Quarter (maximum)
 Constant for every rep within region
 Baseline for regional planning
3

7. 7
Defining Your Pipeline
Establish target ratios for each stage:
 Determine conversion rates from stage to stage
 Determine conversion rates to Compare and
contrast to other regions
 Test against “3:1 rule”
 Use as a predictor for long-range forecasting
 Compare target ratios with target totals
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8. 8
Inspecting Your Pipeline
 Look for gaps
 Compare team pipeline with individual pipelines
 Record #s and ratios from week to week
 Limit pipeline to activity with past 30 days
 Purge!
 Limit your inspection to one page
 Inspire similar inspections at the rep level
 A ruler for the day/week/month/quarter

9. 9
The Case For Activity Tracking
 Puts you and the rep in control of the process
 An objective measure of performance
 Basis for individual and team commitments
 Contributes to an activity-driven sales culture
 Builds confidence
 Improves self-sufficiency
 Gives quick satisfaction
 Easily customized for any rep based on your
specific goal

10. 10
“Inspect What You Expect” Summary…
 Define your pipeline in four steps:
 Identify the sales stages
 Anchor milestones
 Establish target totals
 Establish target ratios
 Pipeline Management requires constant
commitment and reinforcement.
 Inspect pipeline for gaps
 Inspire an activity-based sales environment
 Dedicate separate time to proactive and reactive
duties

11. 11
Modern Forecasting Theory
 “Credibility-based”
 Numbers-driven
 Not tied to pipeline or specific deal
 Adjustments made at every level
 “Fact-based”
 Oppt-driven
 Tied to actual deals and stages
 Forecast is the same at every level
 “Probability-based”
 Assigned probability to closure by rep
 % is multiplied to TCV

12. 12
Forecasting Principles
 Forecasting is not a sales stage
 Address management expectations
 Replace objective with subjective
 Universal milestones are critical
 Define “accuracy”
 Establish consequences and rewards
 Limit to 30 days
 100% participation
 Approach forecasting like “closing”

13. Top Sales
Reports That
You Must Use
Now!2

14. 14
“If you can't measure it,
you can't manage it!”
- Peter Drucker

15. 1. Activities Against Goals
What is it?
This report shows you how your employees are performing in a given period of
time vs. individual goals

16. 2. Pipeline Today
What is it?
This report shows you the current state of your pipeline by close date and by the
most important deals that merit attention.

17. 3. Win/Loss Analysis
What is it?
Shows you the count of your won vs. lost opportunities, the revenue won/lost,
and the reason for lost.

18. 4. Sales Funnel Conversions
What is it?
• Shows you the # and % conversions at each step of your sales funnel.

19. 5. Data-Driven Forecasting
What is it?
This forecast is data-driven and not a conventional finger-in-the-wind forecast
that is based more on feelings of any individual rep

20. Thank you!
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