"Pipeline metrics"
Discussion
Most organisations will know what their metrics are and then the job of the sales Manager is to make sure the team tops up the pipeline to meet the needs of their business. When I worked for a national alarm company with average orders of £1,200 the metrics were accurate to the indiviual after a few months in the job. This meant to hit your target of X and a win rate of 1 in 3 orders and a creation rate of 1 in 2 sales visits, you knew how busy you needed to be each day. The bigger the sales value the easier it is to fail if you lose key deals so you need to have a better portfolio of opportunities at certain stages.
Metrics often mean a number of things that are measured and enable a management team to understand the activity and outcomes of a company and take action.
A simple set of metrics to monitor the return on investment of an email marketing campaign might be:
Cost of developing and broadcasting email
Number of outbound emails sent
Number of enquiries returned
Number of qualified leads
Total contract value of leads
Value of leads won (closed won)
Value of leads lost to another supplier (closed lost)
From this you'll be able to measure the the total contract value (potential sales volume) that the email generated, giving an idea of the effectiveness of the message you sent.
And then you'll be able to assess sales performance - let's say the email to 10,000 people generates 100 responses - you have a hit rate - 1%. If you sell a product you could make an assment of the potential sales here - so average product cost £100 x 100 will give you a rough guie of potential sales - £10,000.
You can now look to the sales team and see how many they convert to actual sales - say 30% - closed won £3,300 and closed lost £6,700. Let's say you spent £500 on the email and the sales team cost you £1000 for that day - you've added £1,800 to your profits (jolly good) and up to £6,700 in revenue has gone to your competitors, (not so good, is there something that the sales team could do to win more?).
So pipeline metrics are the things that a company measures to calculate/monitor what its future sales should be. So if the pipeline looks weak, turn up the volumes on marketing and new sales, if it's strong then ensure sales have the right resources to close the deals that are on the table, and so on.
A simple set of metrics to monitor the return on investment of an email marketing campaign might be:
Cost of developing and broadcasting email
Number of outbound emails sent
Number of enquiries returned
Number of qualified leads
Total contract value of leads
Value of leads won (closed won)
Value of leads lost to another supplier (closed lost)
From this you'll be able to measure the the total contract value (potential sales volume) that the email generated, giving an idea of the effectiveness of the message you sent.
And then you'll be able to assess sales performance - let's say the email to 10,000 people generates 100 responses - you have a hit rate - 1%. If you sell a product you could make an assment of the potential sales here - so average product cost £100 x 100 will give you a rough guie of potential sales - £10,000.
You can now look to the sales team and see how many they convert to actual sales - say 30% - closed won £3,300 and closed lost £6,700. Let's say you spent £500 on the email and the sales team cost you £1000 for that day - you've added £1,800 to your profits (jolly good) and up to £6,700 in revenue has gone to your competitors, (not so good, is there something that the sales team could do to win more?).
So pipeline metrics are the things that a company measures to calculate/monitor what its future sales should be. So if the pipeline looks weak, turn up the volumes on marketing and new sales, if it's strong then ensure sales have the right resources to close the deals that are on the table, and so on.
Gassing Station | Business | Top of Page | What's New | My Stuff