Undertaking sales pipeline analysis is a vital process. Especially for organisations serious about facilitating growth and providing the best possible customer experience.
Both internally and externally, the potential insight that forensic analysis can provide is nigh on endless.
So why do so many organisations neglect their data? Or worse, fail to invest in investigation in the first place?
“63% of respondents say that their companies do a bad job of managing their sales pipelines.”Vantage Point
What Is Sales Pipeline Analysis?
Sales pipeline analysis is the process of interrogating opportunities at each stage of the cycle. From initial lead through to sale and beyond.
In much the same vein as opportunity analysis, a high level overview of your pipeline can identify areas of excellence and those with room for improvement.
“Without proper visibility into your sales activities, it is challenging for you to form your next sales strategies.”SalesKen
Such analysis allows you to address recurring roadblocks before they snowball into impenetrable behemoths.
Likewise, it enables you to double down on what is working and scale best practice across the organisation.
Without taking the time to investigate your data, decisions cannot be made as to how better serve your customers. This is where the value of analysis truly lies.
The Value Of Analysis
Each opportunity is different. As such, it must be treated accordingly.
There are however, common traits that will emerge across your pipeline that allow you to identify areas warranting focus.
Investigating the state of play can provide insights into which prospects are ready to complete a purchase and which prospects need more persuasion.
And perhaps most importantly, why.
“Through effective sales pipeline analysis, you’ll empower your team to reach their sales goals and make sure no deal gets left behind.”Close.IO
Such insight allows you to better allocate precious resources to those opportunities either requiring immediate attention, or with potential for maximum reward.
If there is limited value associated with a particular opportunity, you should question whether or not time would be wasted pursuing it when others are available.
From a senior management perspective, sales pipeline analysis also allows you to highlight which individuals, stores or regions are exceeding or missing their targets.
By taking this granular approach, assistance can be provided where needed and decisions can be made as to how best to emulate your top performers.
Effective analysis positively impacts the organisation on both a macro and micro scale.
How To Conduct Sales Pipeline Analysis
Question is, how to go about starting your analysis in the first place?
Whether you’re analysing at an individual, store or account level, the first task is to segment the stages of your pipeline.
These will vary from organisation to organisation but can be categorised along the lines of:
- Qualified Lead
- Qualified Opportunity
- Closed Won/Lost
- Post Purchase
From here you can begin to explore how effectively each stage operates and, most importantly, why that is the case.
This is where harnessing best of breed technology can take your insight to the next level.
Rather than gathering scraps of paper or relying on outdated spreadsheets, utilise dashboards to access live, reliable data.
Focus On The Right Figures
A word of warning though, there is such a thing as too much data.
Bearing this in mind, below are listed some of the metrics worth tracking to better understand the state of your pipeline.
These include, but are not limited to:
- Volume Of New Leads Per Week/Month
- Conversion Rates
- Loss Rates
- Pipeline Per Stage/Store/Individual
- Average Length Of Sales Cycle
The power of this insight comes in the diagnosing of pipeline health checks and for boosting morale.
Being able to highlight specific opportunities, or focus areas, enables a more proactive sales force.
With everyone working toward closing the most valuable opportunities and providing the right assistance, at the right time, to those customers requiring more help.
When it comes to analysis, the information is, for most organisations, already there.
Where it becomes invaluable is when it is collated, investigated and acted upon. Only then can internal operations be streamlined for success, and customers be better served.
Ready to explore how Anthill can help elevate your sales pipeline analysis capabilities? Schedule a demo today.
Intrigued to learn more? Check out our Insights Hub to keep your business at the cutting edge.
February 8th, 2022-