Are we getting our facts straight?
Using the Sales Funnel To Estimate Sales Revenue
First, estimate the likely hood of closing business based upon your qualification process.
List the procedure you normally go through to win business, and the related % chance of winning business once you've completed that phase. Here is an example procedure list:
Position In Sales Process | % Chance of Closing |
---|---|
New Lead | 10% |
Found Coach | 20% |
Identified Requirement | 20% |
Met User and Specifyer Buyers | 25% |
Understand Personal Wins | 25% |
Identified Competition and USPs | 25% |
Presented Features, Advantages, Benefits | 30% |
Sent Proposal | 50% |
Met Final Decision Maker | 60% |
Agreed to Purchase | 80% |
Producing Order | 90% |
Closed | 100% |
Once this has been established, you can use these percentages to forecast revenue buy prospective account to get a weighted revenue figure such as the following:
Prospect | Value | %Chance | Weighted Value |
---|---|---|---|
Company A | $100,00 | 80% | $80,000 |
Company B | $50,000 | 70% | $35,000 |
Company C | $60,000 | 60% | $36,000 |
Company D | $75,000 | 90% | |
Company E | $25,000 | 100% | $25,000 |
TOTAL WEIGHTED REVENUE | $243,500 |
Utilising this method of forecasting will give you an accurate indication of how much you will sell and by when. Additionally, it helps you to focus on your personal sales process, and how you can move prospects onto the next level to close.
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