How realistic are the results?
The math is straightforward, showing what volume of input is needed at given conversion rates to achieve a set goal amount. When companies take themselves through this exercise, the most common result is the realization of a critical weakness in their ability to fill the top of the funnel. It goes beyond simply setting a sales quota number and securing buy in to that number. If you can’t fill the needed prospects into the top, then you will never reach the goal at the bottom. It’s not that your salespeople are putting you out of business; it is a matter of having the correct companywide marketing and sales plan and processes in place to feed your funnel.
How do you make it work?
Determining who (marketing staff and sales reps) is responsible for generating top of the funnel leads from which sources (Web marketing, events, referrals, networking, prospecting) is the first step. Next, develop what amount of leads and conversion percentages will be used as scorecard metrics to manage activities for success. Then, assess who is doing what blocking and tackling in generating these leads and maturing them down the funnel. Are the people, processes, tools and metrics aligned and in place to generate the quantity and quality of leads needed?
With this alignment in place, you can also work on influencing the funnel dynamics to more efficiently lead to your goal. Items that can change the math results quickly are conversion rates and the average sale size.
For example, if you could increase the average deal size to $21K and your sales conversion rate to 39 percent you would have much less to fill at the top of the funnel. Changing just these two factors revises the math to require four deals won monthly, 11 proposals presented monthly and 44 viable leads generated monthly, which achieves (and exceeds) the annual goal revenue at $1,008.000.
Weekly tracking of the marketing and sales details attached to leads generated, conversion to opportunities, and proposals to won deals is key. This will help you analyze the tactics that are working best, what types of leads to prioritize time and effort on, and what sources and influences are your best cost per lead investments. Knowing how changes in the funnel factors affect the outcome will also guide adjustments in strategy and help you manage to the metrics that add up to successfully reaching your sales goals.
For a snapshot of Bayshore Solutions’ Web marketing methodology, visit www.BayshoreSolutions.com/method.
Kevin Hourigan is the president and CEO of Bayshore Solutions. Reach him at (877) 535-4578 or www.BayshoreSolutions.com.
