Sales Pipeline Analysis

1
Sales Pipeline Analysis

• Tracking Activity in the Sales Cycle

2
Introduction

• Overview
• If your company has a sales cycle, these charts
  illustrate how you can measure the level of
  activity in each pipeline stage
• You can use this approach to track activity in
  the sales pipeline by project, which is
  appropriate for many professional and financial
  services firms
• You can also use this approach to track activity
  in the sales pipeline by channel, product line,
  or customer segment
• Assumptions
• There are three stages in the sales
  cyclequalified lead, proposal, backlog
• Sales activity is tracked by project

3
Notes on Sales Pipeline Analysis

• The sales pipeline marimekko chart provides an
  overview of the entire pipeline
• The widths of the bars tells you the level of
  activity in each stage
• The individual segment sizes tell the relative
  importance of each project
• The cluster bar chart compares sales activity
  this year to the same time last year
• It provides a comparison of current activity to a
  baseline
• The gap analysis cascade chart provides the sales
  team a sense of how much more business they need
  to bring in to meet their sales quota
• We factor in the probability of closing deals in
  each stage of the pipeline to compute the gap
• The lost sales marimekko chart identifies areas
  where the sales team could improve their effort
• The widths of the bars indicate the size of
  projects lost in each stage
• The individual segment size indicate the relative
  importance of each lost project

4
Sales Pipeline as of March 31, 2004
While several large qualified leads have been
identified, the backlog is alarmingly small.
5
Sales Activity versus Last Year
Backlog is low, but there are larger
opportunities as qualified leads. Lets make
sure we close them!
6
Sales Gap Analysis as of March 31, 2004
To meet our yearly goal, we must significantly
increase the amount of qualified leads in our
pipeline in the next quarter.
Note Gap analysis estimates year end volume
based on projects closed to date and value of
projects in different stages of the pipeline
multiplied by estimated percentage of projects
closed.
7
Sales LostJanuary 1-March 31, 2004
Many small projects were lost as qualified leads.
Perhaps we should be more selective in the leads
we pursue to place more effort on winning larger
proposals.