What Can You Tell From These Sales Process Behavior Charts?
Pictures are worth a thousand words, especially when it comes to measuring sales and marketing production.
Measuring Sales Production Correctly
Figure 1 below contains two process behavior charts showing production measurements from a B2B company’s sales process. The first shows the quantity of qualified opportunities generated per month. The second shows quantity of closed orders per month. Each is for the same group of salespeople over the same twelve month time period.
Most companies measure orders (output) only, so they have no way of knowing what is really going on in the business. In this case we can tell a lot more about what is going on because we have a measure of the input (qualified opportunities) as well as the output.
Figure 1 – Sales Process Behavior Charts
Notice how the production of qualified opportunities trails off in the last quarter, while the production of closed orders increases during the same period. Of course, that’s normal behavior of salespeople at the end of a year, focusing more on closing deals in their pipeline than they do on lead generation. They made their numbers during the year in question.
A Problem Worth Avoiding
Yet it is something that is almost entirely avoidable.
Can you tell what it is?
I’ll tell you what it is in my next posting, on Monday.
May 27, 2009