10 Mar How to use mathematics to improve Sales performance
Posted at 16:16h
in Sales
6 Strategies to improve your Sales Velocity
Sales velocity is similar in concept to any other type of velocity measurement. In a car, velocity is a measure of its speed i.e. miles per hour.
Sales Velocity measures and predicts the “£’s per day” – how much and how quickly is your business making money?
The equation for Sales Velocity is as follow:
The benefit of understanding Sales as a mathematical equation is that you can:
- Measure and compare improvement over time.
- Analyse and measure the different strengths and weaknesses of sales people across different territories, selling different products.
- Map sales skills such as prospecting, qualifying, needs analysis and closing skills to the equation to help identify skills gaps.
- Provide a prediction of pipeline value and early warning of problems.
Microsoft Dynamics 365 / CRM can be set up to measure the individuals in the sales team and their specific velocity. The equation can be broken down and sales improvement plans can be devised to increase individual sales performance.
1. Formalise and enforce a Sales process
Many organisations think they have a sales process but it is undocumented and not enforced. Formalising the process is the first step to being able to improve sales velocity.
Microsoft Dynamics CRM can be configured to manage each step of the sales process. The diagram below shows a typical sales process with the various stages. Within each process stage, tasks can be added to help sales people qualify their leads.
Microsoft Dynamics CRM also helps reinforce best practice and can provide an approach to measure the adoption of the process.
2. Focus on it and measure it in Dynamics CRM
Once you have defined your process you can start to measure sales velocity. Dashboards and charts are used to inform business leaders of progress, and improvements can be compared month on month.
To identify where to improve sales performance, the data in Microsoft Dynamics CRM can be sliced and diced in a variety of ways to compare what is working well and what needs improvement.
3. Improve your Win Rate
Is your pipeline flabby or fit (this will be the making of a new blog soon). Poor performing sales people are often those who are reluctant to “qualify out” any potential opportunities. They like the comfort of a large pipeline, however unrealistic it is.
By qualifying out “bad business” they will have more time to spend developing the right opportunities, which can lead to them closing quicker and improving sales velocity.
4. Qualify Early
As explained in point 3, it is important to qualify out unrealistic leads and opportunities. The sales process configuration within Microsoft Dynamics CRM can make it easier for sales people to not only qualify their leads but qualify early.
The Sales Process framework prompts the sales person with open questions so they can qualify early and concentrate on working on opportunities that are more likely to close. Of course, every business and sales process is different so this is totally configurable to your specific needs.
5. Increase the Average Deal Size
Adopting a solution sales approach enables sales people to present solutions to their prospects that delivery more business benefits than their competitors. This customer focussed approach enables the sales person to bundle a range of products and services increasing the size of the opportunity £’s.
CRM Dynamics Ltd has a Solution Selling Methodology Template that can be modified to meet an organisations specific needs.
6. Decrease the Sales Cycle Days
Building a solution sales approach focusses on the value your products and services offer your prospects. This approach will give you the confidence and ammunition to bargain your way to the most senior executives. If you have a compelling, value based argument and are taking to the top of an organisation, the decisions usually happen quicker.