CRM in the Sales Process

Posted on in Business

There is more to CRM system than just sending out emails and letters to your database and tracking responses.

It can be used to track your sales pipeline so appropriate sales activities can be applied to create and close sales.

Sales status

The sales process can be managed and monitored using a CRM system. The sales process drives the sales pipeline. All sales opportunities can be be categorised by sale value, timing and probability.

    • Sale value. The estimated value of the sale based on current knowledge.
    • Sale timing. The date the sale will be closed.
    • Sale probability. The probability of winning the sale.

Sales pipeline management

Milestones and probability

By establishing a set of milestones and assigning a percentage probability of sale against each it is possible to factor and hence track the value of all sales over time. Thus your complete sales pipeline can be tracked and appropriate sales activity applied to close sales.

An example ...

A sale opportunity is identified with an estimated value of £10,000 with delivery in 6 months time. As the opportunity has not been qualified you may give it a probability of 5%. The future value then of this sale is therefore £500.

However, 3 months on:

    • You have made a proposal and the value of opportunity now £12,000.
    • You are not in exclusive discussion with the customer.
    • You think you may be the preferred supplier.

The sale probability is now 60% so the future value has risen to £7,200.

Finally, after 6 months hard work you win the deal, the contract value is £14,000 and you start next week!

Assignment of sales milestones and probability

With a range of businesses out there it's not possible to give firm guidance on milestone vs. probability.

However, the best policy is to apply your business knowledge to identify a small set of milestones that are clear and unambiguous that relate to progress through the sales pipeline. Follow this with % probabilities at each milestone of closing the sale based on past business experience in winning orders.

How can we help?

We can work with you, using our proven Business First approach, to identify and implement a sales pipeline tracking system for your business. To discuss further please contact us or see our CRM Business Service.