Getting Better Results through a better Sales Pipeline

Another factor to consider for improved profitability is your sales process.
How are you generating leads?
How are you qualifying your prospects?
When you engage with them, do you have a clearly defined sales pathway to take them along?
Do you have a “Sales Pipeline” to manage it all?

A well-managed Sales Pipeline is a crucial tool to keep the work in front of your team.
If you haven’t heard this expression before, the sales pipeline is a visual representation of your sales process where all your potential customers are displayed and neatly arranged per their phase in your sales cycle.

Using a sales pipeline to manage the process is a very effective way to help potential customers down the slippery slope towards the purchasing decision.

So, think about it like this.
You know you need to do 12 jobs per month to pay the bills and make a profit.
However, you also know you’re only successful in winning 1 quoted job out of 3.
So straight away you know you’d need to quote 36 jobs to get the 12 you need to stay afloat.

But how many jobs do you go and look at without even quoting?
For whatever reason, you know it’s not worthwhile investing your time quoting.
So, you just walk away. And this might be every second job.
Now we have an idea of the numbers of leads we’d need to pour into our sales funnel to get the required 12 jobs per month.
It’s just mathematics now.

Required jobs per month 12
Win ratio for quoted work 1 out of 3 or 33%
Required jobs in system 3 x 12 = 36
No. of jobs you don’t even quote 1 out of 2
No of leads required in pipeline 36 x 2 =72

This table shows I’d need to have 72 leads in the sales pipeline to deliver the 12 jobs per month my business requires.
Of course, once you start capturing this data, you can start monitoring and improving the sales process.
For example, what if I started winning 1 out of 2 quoted jobs?
Suddenly, I’d be winning 17% more work than I currently do, which may not even be viable from an operational perspective.
So maybe, I’d choose to reduce the number of leads I’d be needing in the business.
And seeing as it costs money to acquire leads in a business, potentially I’d be saving some of my marketing budget.
Here’s what that table would look like.

Required jobs per month 12
Win ratio for quoted work 1 out of 2 or 50%
Required jobs in system 2 x 12 = 24
No. of jobs you don’t even quote 1 out of 2
No of leads required in pipeline 24 x 2 =48 or a reduction of 33%

So, if you want to achieve outstanding results in your business, focus on using a Sales Pipeline tool to monitor, measure and track your performance.
This is one of the methods we use with our coaching clients to dramatically grow their business.
From our observation, the more disciplined a business owner is at doing this, the more profitable the business tends to be.

At CUBE, we work with business owners from all over the country to identify their ideal client,
implement processes to communicate the value that they offer and a system to monitor their leads, quotes and conversions.

If you would like to discuss your business and how we can assist you to set up these processes, contact us on the numbers below.

For more information on setting up your financial management reporting and your sales pipeline,
contact us on 02 8011 4855 or 1300 665 922 or email us at info@cubeconsultinggroup.com.au