Is your sales pipeline used as a valuable business management tool including providing accurate forecasting in your business? What are the attributes of a healthy pipeline? Sales pipeline management refers to the process of overseeing and optimising the progression of sales opportunities through various stages of the sales cycle, from initial contact to deal closure. It involves tracking and managing leads and prospects as they move through the pipeline, identifying potential bottlenecks or obstacles, and implementing strategies to increase conversion rates, shorten sales cycles, and maximise revenue generation. If you’re wondering or even doubting why it’s necessary to have an accurate and well-maintained sales pipeline, here’s some research to help you out. A study by PricewaterhouseCoopers (PwC) found that companies with superior sales pipeline management achieve 33% higher revenue growth rates compared to those with poor pipeline management practices. And according to a study by the Aberdeen Group, companies with effective sales pipeline management processes experience 28% year-over-year growth in their sales pipelines, compared to a 7% decline for companies with poor pipeline management. Furthermore, research by CSO Insights found that organisations with well-defined sales processes and effective pipeline management practices have 18% higher win rates compared to those with ad-hoc or informal processes. Fairly compelling. For a pipeline to provide valuable insights the data must be accurate, up-to-date, and of a high quality. A healthy pipeline enables accurate sales forecasting, allowing sales leaders to predict future revenue with confidence. By tracking historical performance, conversion rates, and pipeline velocity, organisations can make informed projections about future sales outcomes. What does a healthy pipeline look like, and what should be focused on to create these kinds of benefits? These are the main attributes to consider: Effective Sales Process: The pipeline should align with a well-designed sales process that guides sales reps through each stage of the buyer’s journey. These processes should be standardised, repeatable, and be supported by relevant training and resources to ensure consistency and efficiency. Well-Qualified Leads: A healthy pipeline begins with high-quality leads that have been well qualified to ensure they fit the ideal customer profile. Leads should align with the organisation's target market, the solution solves a genuine pain-point for the prospect, budget exists, and authority and resources are present to make a purchasing decision. Companies will however have their own often specific requirements for what a well-qualified deal is. The Right Mix: A healthy pipeline should have the right combination of deal sizes ranging from small to large, existing vs new, and short vs longer sales cycles. Balanced Pipeline Coverage: A balanced sales pipeline refers to the distribution of leads or opportunities across different stages of the sales process. In a balanced pipeline, there is a ratio and distribution of leads at each stage, reflecting the natural progression of opportunities from initial contact to deal closure. Deal Velocity: Refers to the speed at which opportunities progress through the sales pipeline. It’s a measure of the efficiency and effectiveness of the sales process converting leads into customers within a specific timeframe. Companies will determine an optimal deal velocity based on the size and type of opportunities they work on. Appropriate Pipeline Weighting: A correctly weighted sales pipeline involves assigning a value or weight to each lead or opportunity stage based on its likelihood of conversion or potential value. An example is ‘Leads’ at 10% weighting and ‘Contract Negotiations’ at 70%. Opportunities are "weighted" according to factors such as the level of engagement or interest demonstrated by the prospect, probability of close, and the estimated revenue or deal size. The purpose of a weighted pipeline is to prioritise and focus sales efforts on the most promising opportunities while deprioritising or allocating fewer resources to less qualified or lower-value prospects. Regular Pipeline Reviews: Sales managers should conduct regular reviews of the pipeline to assess its health and identify any potential issues or bottlenecks. These reviews provide opportunities to analyse pipeline metrics, provide coaching, address gaps, and make necessary adjustments to improve performance. Data-Driven Insights: A healthy pipeline leverages data analytics to gain insights into sales performance, identify trends, and inform decision-making. By tracking key performance indicators (KPIs) such as conversion rates, average deal size, and sales cycle length, organisations can optimise their pipeline strategies for better results. Sales pipelines can be unreliable as a management tool when they’re not maintained effectively in a way they were designed for. Some reasons pipelines become unreliable include: Inaccurate or incomplete data: Missing or incorrect information about leads, deal sizes, stages, or probabilities can skew the accuracy of the pipeline. Lack of governance: Good governance and controls ensure the ongoing integrity of the pipeline and its data. This includes establishing clear guidelines for data management, defining standardised sales processes, implementing procedures to ensure compliance with regulations, and providing training and support to sales teams. Short-Term Focus: If the organisational culture emphasises short-term results over long-term sustainability, sales teams may prioritise closing deals quickly rather than maintaining accurate pipeline data, or looking for and nurturing longer term opportunities. Lack of Accountability: Sales representatives may not feel responsible or motivated to accurately update and maintain the sales pipeline. This can result in outdated, inaccurate, or incomplete data, making it difficult to generate accurate forecasts or make informed decisions. Silos and Lack of Collaboration: When departments operate in silos and there's a lack of collaboration between sales, marketing, and other relevant teams, it can lead to inconsistencies in pipeline data and misalignment of goals. Change Resistance: Cultures that are resistant to change may be reluctant to adopt new technologies, processes, or methodologies for managing sales pipelines effectively. High Pressure and Unrealistic Expectations: Companies that place excessive pressure on sales teams to meet aggressive quotas, quota coverage rules (3 x multiple of quota etc), or unrealistic quotas may incentivise behaviours that prioritise quantity over quality in the sales pipeline. Sales representatives may be inclined to inflate pipeline projections or neglect proper lead qualification processes to meet these demands. Lack of Training and Development: In cultures where training and development for sales professionals are neglected, employees may lack the skills and knowledge needed to effectively manage and maintain sales pipelines. Blame Culture: Cultures that foster a blame-oriented environment where mistakes are punished rather than viewed as opportunities for learning can discourage sales representatives from proactively addressing issues with pipeline accuracy. Lack of Leadership Support: When leadership fails to prioritise and actively support effective pipeline management practices, it sends a message to sales teams that accurate pipeline management is not a priority. By effectively managing the sales pipeline, organisations can improve sales performance, enhance customer relationships, and gain a competitive edge in the marketplace. Effective pipeline management requires a concerted effort from leadership to promote transparency, accountability, collaboration, continuous learning, and a customer-centric approach to sales pipeline management. By fostering a culture that values accuracy, integrity, and data-driven decision-making, organisations can mitigate the risk of inaccurate and poor-quality sales pipelines.

Leveraging Scientific Principles to Architect and Cultivate a Winning Sales Team John led a team of six salespeople. Over the past year half his team had left the company and been replaced. Sales performance had declined and was at an all-time low. John couldn’t seem to get the team humming. He felt he’d run a solid recruitment process but it was clear these newbies were not the right people for the job. Most sales managers struggle with recruiting good salespeople, staff retention, impacts of poor hires, and also how to be successful with individual and team development. The impact of not getting hiring and development decisions right is no more pronounced than in sales where it can be the difference between a company’s success and its demise. Learning through experience and failure is a slow road to success. In the competitive world of selling where results depends on the strength of the team, companies must employ effective strategies to design, develop, and select individuals for key sales and leadership roles. Furthermore, with so much variability in hiring strategies by managers, a standardised approach should be considered to improve the long-term sustained success of hiring, developing, and coaching people. Successful companies are utilising a mix of psychology and technology using personality assessments that measure individual and team strengths, motivations, and areas of opportunity as it relates to the workplace, designed to accurately predict job-related behaviour. These assessments are grounded in science and provide a valuable supporting tool in hiring, coaching, and development of staff, encompassing a combination of personality assessments, cognitive tests, and situational judgment tests that provide a comprehensive understanding of a candidate or current employee. The accuracy and reliability of these assessments to predict behaviour comes down to the quality of the company being used for the tests and the science behind them. Quality is measured by three main attributes; validity, predictability, and reliability. Validity reflects whether whether the test is capturing the targeted aspects of an individual's personality that are relevant to sales performance, predictability is a measure of actual performance and whether a candidate who has been assessed as strong on a particular set of traits performs the way they are predicted to, and reliability is a measure of whether a test holds up over time. Most job related assessments look at a combination of an individual’s work-related traits, behaviours, and competencies. Traits can be thought of as your personality’s natural tendencies or motivations, some more dominant than others. Each of your traits drives a specific motivation that plays into your attitude towards work. These traits all pull at us in certain directions. Your personality is a combination of traits that, despite being invisible, combine to shape your behaviours. You behaviours, in turn combine to form competencies. That is, how you perform in the critical outcome areas in your role. While behaviours can be readily observed in the moment, it often takes a variety of successful behaviours over time to display a competency effectively. By combining a person's traits, you can make far more nuanced predictions about how this person might behave in a work situation. And finding these behaviours out during an interview process or based on previous work experiences is next to impossible, which is why companies often make hiring decisions based on a small series of, often biased interviews, presentations, and observations. The first step in successful hiring the process is role design. The objective for this process is to assess the core competencies required for each sales role, which can vary significantly. For example, a new business ‘hunter’ will need to be strong in initiating action, resiliency, plus achievement motivation & perseverance in combination with other competencies, whereas a strategic sales role will require more strength in the areas of business acumen, strategic selling, planning, and being organisationally savvy for example. Once the specific competencies have been agreed for the roles against job requirements and objectives, a hiring plan can be created to seek out talent, either internally or externally. Some assessment companies Like Talogy have over 50 validated job models to choose from including 16 roles in sales that work across industries with associated competencies proven to be the right combination for the roles to be successful. Customised model can also be created. Job candidates can be tested against the desired role competencies as a supporting tool for comparisons with other potential hires, areas to explore in job interviews, and as a future coaching and development guide should they be hired. Often hiring managers will be biased towards a candidate’s past experience or other attributes and may not get exposure to how someone is hard wired and therefore likely to perform on the role. These assessments will show those innate strengths and whether they’ve be placed into previous roles that match their skills, or if they have learnt to behave in ways contrary to their natural strengths. By relying on objective data, organisations can make more informed decisions, ensuring that the chosen candidates not only meet the immediate needs of the sales team but also have the potential for sustained success and growth within the company. John decided to review his three sales roles against ideal job competency profiles with a personality assessment company. He ran his team through the process and the results reflected low natural traits and behaviours in a handful of key competencies for the various role types. Although the findings weren’t ideal, John was provided with a coaching and development plan to aid his team towards improvements. He could assess the strength of his team overall and had data that could support future promotional and career development decisions. As part of the process, one member ended up moving into a different role that was more suitable for them, and one left the company of his own accord, opening up and opportunity to hire someone new who had skills more suited to the role thanks to the use of the assessment tool. The team is now on the improve and tracking towards plan. Hiring a team of high performing salespeople is a combination of art and science. Experienced sales leaders often have an innate sense of who to hire and who to stay clear of. The ‘art’ encompasses the ability to assess interpersonal skills, gauge cultural fit, and perceive qualities that may not be explicitly captured in a resume or assessment. It’s gained through a combination of intuition, on the job learning, and personal abilities. On the other hand, the ‘science’ of hiring salespeople involves a more systematic and data-driven approach. It includes the use of assessments, analytics, and structured interviews to objectively evaluate candidates based on predetermined criteria. Balancing the art and science of hiring in sales is essential for a comprehensive approach. Talogy Talogy is one of the world’s leading personality assessment companies with over 60 years of experience and research behind it. Its Talogy Caliper assessment measures 21 personality traits, 56 competencies, 280 workplace behaviours, and a cognitive component of abstract reasoning. Caliper options include selection report, coaching report, individual development guide, and a full analytics platform that lets clients instantly access data to compare, rank, and interpret personality information across multiple employees/candidates in one place. Talogy makes the following claims: Caliper Profile users double their chances of hiring a salesperson at the top 25% of their sales force. 70% of job candidates matched by the Caliper Profile consistently meet or exceed their sale target. Clients say that over 84% of candidates matched by the Caliper Profile are now highly valuable to their company’s achievement of goals. 30% improvement in 3-month new hire retention rates 16% reduction in 6-month turnover 29% improvement in sales performance 95% of clients say Talogy makes it easier to do their jobs 97% of clients say Talogy has improved the quality of their hires For more information see ( www.talogy.com ) or contact Elevate Sales ( www.elevatesales.co.nz )

H ow to Ensure a Seamless Sales Transformation

In the fast-paced world of sales, it's easy to fall into the trap of believing that simply selling more is a strategy for success. If salespeople just push harder and increase their sales volume, success will naturally follow. However, this approach often lacks direction, focus, and a comprehensive understanding of the market dynamics and customer needs. The reality is that an effective sales strategy is much more than just chasing higher numbers. It requires a clearly planned approach that outlines where to play and how to win. An effective sales strategy goes beyond vague aspirations and wishes. It involves reflection, analysing the market landscape including the competition, and determining where your organisation can play to its strengths and capitalise on opportunities. This requires identifying target markets, customer segments, and niche opportunities that align with your value proposition. A documented strategy acts as a guide, providing clarity and direction to the sales team and aligning their efforts with the overall business objectives. Five Key Elements of a Successful Sales Strategy: Clearly Defined Objectives: A sales strategy must have specific, measurable, and time-bound objectives that align with the broader organisational goals. These objectives should be ambitious yet attainable, providing a clear focus for the team. Market Analysis: Understanding the market landscape, including competition, customer preferences, and industry trends, is crucial for effective strategy development. This analysis helps identify gaps, unrealised opportunities, and areas where your organisation can differentiate itself. Target Segments and Ideal Customer Profiles: Defining your target segments and creating detailed customer personas enables focused and personalised sales efforts. This allows you to tailor your messaging, positioning, and tactics to resonate with the needs and pain points of your target prospects. Tactical Planning: A robust sales strategy outlines the specific tactics and actions required to achieve the defined objectives. This includes delineating sales channels, defining sales processes, allocating budgets, and setting performance metrics. Each tactic should be supported by a detailed action plan with clear responsibilities and timelines. Continuous Evaluation and Adaptation: A successful sales strategy is not set in stone. It requires continuous monitoring and evaluation to gauge its effectiveness and make necessary adjustments. Regular review of key performance indicators (KPIs) helps identify areas for improvement and fine-tuning. To achieve sustainable growth, sales teams must embrace the power of a thorough, well-defined, and documented sales strategy. Does your sales ‘strategy’ need a strategy?