Each sales stage is assigned a percentage probability of closing. For example, deals in the Confirmation of Offer acceptance stage may have a 50% probability of closing (I wish that were the case). You multiply the value of the opportunities in this stage by the percentage, and only then add this result to the sales plan amount.
For example, if you have five $100,000 opportunities in the middle of your sales funnel, you can’t expect to earn half a million at the end of the period. You’ll just multiply each OP value by fifty percent.
Trade Value * Probability of Closing = Weighted Opportunity Value
100,000 CZK *50% = 50,000 CZK
And suddenly you have a target plan of only 250 thousand crowns.
But you have to divide your sales funnel into stages yourself. And your experience must determine what probability you give to each stage. For example, it might look like this:
How to refine your business pipeline?
A weighted pipeline will give you a better idea of your sales opportunities and expected revenue at the end of the year. However, each team must set their stages and probabilities based on their business. A weighted pipeline is suitable when you We calculate have a wide range of opportunities at each stage of your follow-up and need a simple method for predicting potential sales.
And now its disadvantages
If you have a small number of business opportunities during the year, it will not work. Or if you have extreme differences in the size of opportunities (e.g. 1 million vs. 20 thousand CZK) it will not work well either. In addition, the weighted pipeline does not take into account, for example, the benefits of repeat business with an existing customer.
Still, I personally like using it at LEADMACHINE. It’s still worth having an idea of how we’re doing and then using that information to plan for individual quarters or even months.
Do good leads equal quick sales? I wish they did! Let’s get the differences between cold call leads and web form leads sorted out. You might (not) be surprised – neither of these sources is a universal holy grail. Each has its pros and cons. Now let’s take a closer look.
1. Speed of generating first leads
- Cold call leads : You select contacts, create a story, pick up the phone, and go. Typically, you can have your first leads within 14 days of making a decision. But be prepared for the deal to take much longer to close. See point 2.
- Web leads : Setting up a form is a breeze, but before the leads start flowing in, you’ll have a marathon of marketing ahead We calculate of you. PPC, social media, PR – anything that gets customers to that form. And all of that takes time , budget, and more time .
2. Where in the buying cycle is the customer currently at?
- Cold call leads : Here you are reaching out to people who have probably never heard of you. No enthusiasm, just curiosity.
- Advantage : No competition! You are the first to give the customer the idea that your product is what they have been missing all along .
- Disadvantage : It will be a long run, not a sprint. These deals won’t close in a fortnight.
