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How To Plug A Leaking Sales Funnel In The Right Place

How To Plug A Leaking Sales Funnel In The Right Place

Everyone in sales has a leaking funnel.

That’s the nature of the game.

It is, after all, why the sales pipeline is typically displayed as a funnel. There are fewer deals at each successive stage in the sales process.

If the funnel wasn’t leaking you’d win 100% of deals. (If you ARE winning 100% of deals then you have other pipeline management issues, it’s just that a leaking funnel is not one of them!).

In fact, for reasons we’ll come to, sometimes there are not enough deals leaking from the funnel. Opportunities hang around in the sales pipeline long after they have any realistic chance of closing successfully. These opportunities over-inflate the sales pipeline and eliminate any chance of accurate revenue forecasting.

So the two questions for every sales manager are:

  • Is the sales funnel leaking to a reasonable extent?
  • Is the sales funnel leaking in the right places?

And if the answer to either of these questions is ‘no’, then there’s a third question.

  • What should I do about it?

So here’s our 4 step guide to plugging a leaking funnel in the right places.

  1. Measure funnel leakage.
  2. Determine where the funnel is leaking.
  3. Understand why the funnel is leaking.
  4. Decide what action to take.

All four steps go together. If you don’t know how much the funnel is leaking – and where – then you can’t decide how best to plug the leaks.

1. How to measure funnel leakage

Here’s the Leaking Funnel dashboard chart and report.

salesforce dashboard chart based on the leaking funnel report.

The chart is created using a Stage Movement report. It shows the ‘From’ Opportunity Stage for all deals that have been set ‘To’ Closed Lost.

In our case the chart covers Opportunities where this Stage movement occurred in the last calendar quarter.

The leaking funnel dashboard chart and report show, for example, 17 Opportunities were set to Closed Lost directly from the Prospecting Stage. In other words, 17 deals that were in Prospecting, leaked from our funnel in the last quarter.

Early Stage funnel leakage

All other things being equal, there’s nothing wrong with deals leaking from the funnel at early stages in the sales lifecycle.

If the opportunity qualification process is working effectively, this is exactly what should happen. Deals are investigated. If there isn’t a win-win for supplier and customer, the opportunity should be qualified-out.

But how much early stage leakage is too much? One way to gauge this is to look at conversion rates (win rates). Are win rates are broadly in line with what you expect? If so, and the funnel leakage report shows an acceptable number of deals lost from the early stages in the pipeline, then you probably don’t have an overwhelming early-stage funnel leakage problem.

On the other hand, if you do have an early-stage leaking funnel issue, consider the actions outlined in Section 4 of this post.

Late Stage funnel leakage

What about deals that leak from the funnel at late Stages in the sales cycle?

Look the chart and report in our example. Is there a problem? 11 deals in the quarter were lost directly from the Negotiation Stage.

This is not good news. As Bud Suse says, there’s nothing worse than coming a close second.

Opportunities that leak from the funnel at late stages waste time, energy and resources and they drain morale.

It looks like we have this very problem in our example. Read on to see how to investigate further and decide on the right course of action.

2. Determine where the funnel is leaking

Knowing that we have a leaking funnel late in the sales cycle is only the starting point. Before we can take action we need to analyse the problem further.

Let’s start by looking at the same report summarized by salesperson.

Salesforce report that shows the leaking funnel for each salesperson.

This report shows the ‘From’ Stage for all deals that have been set to Closed Lost for each salesperson.

It looks like all salespeople have something of a problem. They are all leaking deals at late stages in the sales process.

Let’s reformat the report again to look at the leaking funnel problem from a different angle. Let’s compare new versus existing customers.

Leaking funnel of new customers compared to existing customers.

So now we have a much deeper understanding of where the funnel is leaking.

We have a real problem in losing deals to new customers, late in the sales cycle. We could reformat the Leaking Funnel reports in a variety of other ways to analyse further, but you get the idea. First we measured overall funnel leakage, then we investigated where in the sales process deals are slipping from the pipeline.

Now we need to understand why it is happening.

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3. Understand why the funnel is leaking

So now we have identified specifically where the funnel is leaking. But there’s no point taking action just for the sake of it. We need to understand why deals are being lost.

Here are some ways to do that.

Get feed-forward from prospects

This is the most powerful way. Get insight from prospects with whom you’ve lost deals. Go and ask them where you went wrong. Find out how you could have acted differently to win the deal.

We prefer to call it feed-forward not feedback, because you then apply the lessons going forward to future opportunities.

Discuss the issue with salespeople

Have an open conversation about why the situation is occurring. We’ve facilitated many of these discussions – having an external, independent facilitator is a good way of ensuring an open, no-blame discussion. This is particularly powerful if it is combined with advice and insight directly from the prospects.

Implement a Reasons Lost field

Many companies have this type of picklist or text field on the Opportunity. It’s usually combined with a validation rule to ensure information is entered whenever a deal is set to Closed Lost.

Sometimes this yields useful information. But it’s tough to get the depth of information that can truly make a difference using this method alone. Plus, all too often ‘Price’ is entered as the reason the deal was lost. Qualitative information is key to making real change and a difference to future conversion rates.

4. Decide what action to take to plug the funnel leaks

Now we’re finally ready to take some action! Of course, the appropriate action depends upon the results of our analysis and investigation into why the funnel is leaking.

Depending on the situation in your business, here are some possible actions you can take.

Early Stage leaking funnel

  • Validate the opportunity qualification criteria and process. Check that deals are not being qualified-out too early.
  • Ensure early-stage opportunities for new customers are being followed up appropriately and thoroughly. Make sure they are not being ignored in favor of warm deals from existing customers.
  • Re-focus marketing and lead generation activities on target customers in the right segments.
  • Implement lead nurturing programs to ‘warm-up’ customers before being contacted by salespeople.
  • Implement lead scoring to identify and prioritize the early stage opportunities that should be followed up.
  • Implement a feedback process from Sales to Marketing or Telesales (or whoever generates the early stage opportunities in your business). This communication must explain when and why new deals are qualified-out. Use this feedback to improve lead and opportunity qualification criteria.

Late Stage leaking funnel

  • Improve the investigation stage in your sales process. Ensure that salespeople are not spending wasteful time chasing deals they have little chance of winning.
  • Define your ideal customer and make sure you have a framework for assessing potential deals. Bob Apollo has excellent advice on this.
  • Implement a bid / no-bid approval process. If you operate in a big ticket, RFP environment, get formal sign-off to pitching for a deal.
  • Review the process for identifying all stakeholders in the buying center. Check that key stakeholders are not being left out of the communication process early in the sale.
  • Submit contracts and legal documents for review earlier in the sales process. Get technical and legal issues on the table earlier, before everyone gets too entrenched in their position.
  • Get the right balance of focus and pressure. Are sales people chasing too many lame duck deals?
  • Check for dormant deals and evidence of sandbagging. Do some opportunities remain outside the pipeline until the salesperson is confident a deal is to be done? If so, then it’s interfering with your visibility of the funnel and conversion rate metrics.
  • Implement a lessons learned process to capture valuable information that will reduce funnel leakage in the future.

All funnels leak deals. It’s where, when and how that the funnel is leaking that’s important. Use the Leaking Funnel report in your business today to find out if you have a problem. Then dig a little deeper to figure out the right action for the right type of leak.

Free sales pipeline dashboard

Install the free GSP Sales Dashboard from the AppExchange. Includes the leaking funnel chart. Measure the size, quality and trend in your sales pipeline using the dashboard.

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How And Why To Use Expected Revenue For Sales Forecasting

How And Why To Use Expected Revenue For Sales Forecasting

Not having an accurate revenue forecast is the bane of many sales managers’ lives.

Gut feel just won’t cut it.

Nor will a top-down percentage applied across all open opportunities.

Moreover, executives often dismiss the Expected Revenue report in salesforce as irrelevant or inaccurate.

That’s a pity.

Used correctly, the Expected Revenue report is a realistic forecast of future sales. It’s a sales forecast that stands up to detailed analysis and scrutiny.

But here’s the rub with Expected Revenue.

If the Opportunity Probability is wrong then so is your Expected Revenue forecast.

Unfortunately, the Opportunity Probability IS usually wrong.

It’s wrong because in most salesforce implementations, the probability links directly to the Opportunity Stage. It reflects how far the Opportunity is through the sales process. However, it doesn’t say anything about the chances of winning the deal.

But this relationship can be uncoupled. It’s even possible to set Opportunity Probabilities automatically, based on proven historical evidence.

That way, the Expected Revenue report becomes a realistic revenue forecast and a key sales performance indicator.

That’s the holy grail of sales management.

Expected Revenue Defined

Let’s be clear what we’re talking about here.

Expected Revenue (or Weighted Revenue if you prefer) is the Opportunity Amount multiplied by the Probability. That gives a dollar value for each Opportunity.

Add up these dollars for all your open deals and you have the Expected Revenue for each month or quarter.

If you calculate Expected Revenue on a realistic basis, sales manages know where they stand in relation to future sales targets.

That means decisions that drive sales team behavior are better informed.

For example, if the Expected Revenue is higher than the sales target, focus heavily on closing the deals you already have.

Alternatively, if the Expected Revenue is too low, then the sales team must generate more pipeline to meet target.

The Power of Expected Revenue

Many sales managers dismiss Expected Revenue as irrelevant.

That’s because it relies on calculating the weighted value of each Opportunity. Yet the outcome of each deal is a win or a loss. The full value of the Opportunity is won – or nothing is won.

It’s a binary outcome.

But wait a moment.

Let’s say you have a number of deals due to close next month or next quarter. You will win some and lose some.

The problem is you do not know which will be which. Crystal balls are hard to find.

Suppose you knew this information in advance. You would take 100% of the value of those opportunities that you will win. Likewise, you’d take zero value of the deals that will be lost.

But life isn’t like that.

Other than gut feel, you don’t know which will be won.

However, creating a forecast based on Expected Revenue is the way round that. The catch is it relies on setting a realistic probability for each opportunity.

The Problem with Opportunity Probability

The Opportunity Probability is wrong on many deals because it links only to the Opportunity Stage.

If the Stage moves forward, the Probability automatically increases. That happens irrespective of whether your chance of winning the deal has increased.

For example, let’s say four similar companies are pitching for a deal. They all have an Opportunity Stage called Needs Analysis. And let’s say they all have the Opportunity at 25% Probability.

All four sales teams submit their proposals. They all move the Stage onto Proposal Submitted – which for each company, has an Opportunity Probability of 30%.

All other things being equal, the individual chance of any one sales team winning the deal has not changed. There are four of them left. So each one has a 25% chance of winning.

In fact, it’s probably less than 25% because the prospect may decide not to proceed with any purchase.

However, the total Expected Revenue for each individual Opportunity has increased. Indeed, across the four combined companies, the total probability is 120%.

That clearly doesn’t make sense.

It means that a reliable Expected Revenue forecast needs a better way to estimate opportunity probability.

The Probability of Winning a Deal

For any one company, the Probability of successfully closing an Opportunity is dependent on many factors.

These might include geographic sector, product category, tender versus pitch deal and so on.

For our purposes, let’s consider two factors that apply to many businesses:

  • New or existing customer. Usually the chance of winning a deal is significantly higher with an existing customer compared to a new prospect.
  • The effectiveness of the sales person. Some sales people consistently close more deals compared to the rest of the team.

This where we need to consider history.

In financial services, there’s usually a warning that past performance is not an indicator of future returns.

With sales teams, it’s different. Past performance is an excellent indicator of future returns. We can use that to our advantage.

By extrapolating the Opportunity Probability from similar historic deals, it’s possible to forecast the future. It’s possible to confidently predict Expected Revenue.

Historic Opportunity Conversion Rates

We have implemented functionality for our customers to gather data on historic opportunity probabilities and conversion rates.

New versus Existing Customer conversion rates

Look at the report and dashboard table below.

It shows the difference in opportunity conversion rates between new and existing customers.

Report and dashboard chart compares the difference in opportunity conversion rates between new and existing customers.

The report and chart tells us about conversion rates for existing versus new customers. For example:

  • 41% of all Opportunities with existing customers were successfully won, compared to 34% for new customers. See the “1. Prospecting” row in the report.
  • 58% of Opportunities with existing customers that entered the “2. Investigation” Stage were won. This compares with 53% of Opportunities that entered the same Stage for new customers.
  • 76% of Opportunities with existing customers that entered the “3. Proposal Made” Stage were successfully won. This compares with 65% of Opportunities that entered this Stage for new customers.
  • 92% of Opportunities with existing customers that entered the “4. Negotiation” Stage were won. This compares with 79% of Opportunities that entered this Stage for new customers.

In other words, the report provides the information we need to differentiate Opportunity Probability between new and existing customers.

This is the starting point for more accurate Expected Revenue forecasts.

Sales person conversion rates

Now, let’s consider the difference in opportunity conversion rates between sales people.

Compare the difference in conversion rates between salespeople.

The report shows that Dave Apthorp wins 60% of all his Opportunities compared to 27% for Peter Hemsworth and 36% for Shaun Yates. This is shown in the “1 Prospecting” row.

Look at other rows in the report. They tell us the Opportunity Conversion rate that for Opportunities that move into each Opportunity Stage.

For example, of all the deals that enter the “4 Negotiation” Stage, Dave successfully closes 90% compared to 78% for Peter and 86% for Shaun.

Accurate Expected Revenue

Our customers use the information in these reports to calculate Expected Revenue accurately.

To do this we need a custom Opportunity Probability field.

The field populates by a formula, based on the information we garnered from the conversion reports.

Let’s take an example.

Here’s an Opportunity for £15,000 with a New Customer. It’s in the Investigation Stage.

Based on the standard method, the Opportunity Probability is 25% and the Expected Revenue £3,750.

Expected Revenue using standard approach.

However, we know from our reports that 47% of Opportunities with new customers that enter the Investigation Stage are successfully closed.

That figure automatically enters our custom Opportunity Probability field. Now the Expected Revenue becomes £7050.

Expected revenue with probability adjusted for new customer.

Alternatively, let’s consider what happens if this Opportunity is for an existing customer.

We know that 58% of all Opportunities with existing customers that enter the Investigation Stage close successfully.

Therefore, that figure automatically enters our custom Opportunity Probability field. This time the Expected Revenue is £8,700.

Expected Revenue adjusted for existing customer.

In other words, a realistic Opportunity Probability, based on historic conversion rates, automatically populates for each opportunity.

This, in turn, provides a more realistic (and in this case higher) Expected Revenue.

Accurate Expected Revenue Forecasts

Expected Revenue calculates by multiplying the opportunity probability by the value of the deal.

The problem is that our probabilities link directly to the Opportunity Stage.

However, if we use historical facts it’s different.

We know that 58% of Opportunities with existing customers that enter the Investigation Stage close successfully.  We know that Dave Apthorp successfully closes 60% of all his Opportunities, compared to 36% for Shaun Yates.

Now we can use these facts to set realistic Opportunity Probabilities and drive accurate Expected Revenue reports.

And accurate Expected Revenue reports mean accurate sales forecasts.

To find out more about how to create an accurate sales forecast using Expected Revenue in your business, simply get in touch.

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How To Track Revenue Over Time In Salesforce

How To Track Revenue Over Time In Salesforce

Many businesses need to track revenue over time in salesforce.

For example:

  • Capital equipment items that the customer draws down or pays for over time.
  • Professional services to deliver projects over time.
  • Maintenance contracts in which revenue spans 12, 24 or 36 months.
  • Software-as-a-Service (Saas) licenses on fixed term or open-ended contracts.
  • Transactional items in which you anticipate the customer will buy a significant volume over goods every month, but with no guaranteed amount.

Do any of these apply to you? Perhaps several do.

It’s common for businesses to have a mix of different revenue streams over time on the same opportunity, some managed by framework agreements.

Unfortunately, many companies do one of two things when it comes to tracking revenue over time in salesforce.

The first is they perform this critical activity outside salesforce. They perceive it’s simply too difficult to do in the system.

This means those companies lose valuable visibility of committed and scheduled revenue. This impacts account management, business development, target tracking, revenue forecasting and performance management.

Alternatively, they add numerous fields to the opportunity. These fields capture revenue for Q1, Q2 and so on for each year.

Unfortunately, it’s virtually impossible to produce meaningful reports this way. It also results in one heck of a mess on the page layout.

There’s no need to take either of these routes.

It’s perfectly possible to track revenue over time in salesforce. The result is a significant increase in the benefits you generate from your salesforce licenses.

Two ways to track revenue over time in salesforce

Essentially, there are two options.

Option 1 is to use the standard product schedules feature in salesforce. This works well for many businesses. However, there are significant limitations, which we’ll explain.

Option 2 is to use a custom schedule solution. This solves the limitations of the standard schedule functionality. It’s a dynamic and powerful approach to tracking revenue over time in salesforce that is already benefiting many of our customers.

So let’s start with the standard approach.

Option 1 – Standard product schedules

Here’s how the standard product schedule feature works in salesforce.

The salesperson adds one or more Products to an Opportunity in the normal way.

The salesperson then creates a Schedule for each line item. They do this by clicking on the product line item on the opportunity, then on the Establish button.

This provides the page to enter the details about the schedule for that product on the opportunity.

This generates the product schedule that tracks revenue over time for the first product.

The salesperson repeats the process for any other products on the opportunity.

Advantages of standard product schedules

  • It’s standard functionality with no need to purchase separate app or salesforce.
  • Reports and dashboard chart can track revenue over time using standard product schedules.

Disadvantages of standard product schedules

  • The user interface is cumbersome. For example, the salesperson must drill down to each product line item in order to create the schedule.
  • If the opportunity close date changes, the schedules do not automatically shift. However, you can solve this problem with our Schedule Shifter app.
  • It’s impossible to customize or adapt the standard schedules. For example, you cannot add a Status field to track Booked, Shipped, Invoiced, Paid values. You also cannot schedule by margin or other values.
  • There’s no ability track committed and pipeline revenue over time against current and future targets.

The standard approach is appropriate if you normally have only one product per opportunity and you want an out-of-the-box way to track revenue over time.

Option 2 – Custom Schedules

A custom schedule approach overcomes the limitations of the standard product schedule feature.

Tracking revenue over time in salesforce using custom schedules means you can:

  • Forecast both committed and pipeline revenue over time.
  • Compare revenue over time in salesforce with targets.
  • Update revenue you previously forecasted based on ‘actuals’.
  • Adjust forecasts of future revenue based on current expectations.
  • Analyse revenue over time by product category, territory and other parameters.

Your system administrator can build the custom schedule solution, alternatively or you can use the pre-built GSP Custom Schedule app. We’ll demonstrate how the app works here.

When the salesperson adds one or more products to the opportunity then several additional fields are available.

For each product, these fields define:

  • The method of scheduling the revenue over time. More on this below.
  • The start date when the revenue over time will begin.
  • The number of months for the revenue over time.

Clicking Save simultaneously adds the products to the opportunity AND the associated revenue schedules.

At any time, salespeople can use the Edit Line Item Schedules button to return modify the schedules and change the way salesforce tracks the revenue over time.

Close Date changes

If the opportunity close date changes at any point, then the custom schedules automatically adjust by the same number of days.

For example, if the opportunity close date moves by 20 days then all schedules that track revenue over time also shift by 20 days. This avoids salespeople continuously re-aligning schedules and maintains the accuracy of revenue forecasts.

Track revenue over time in reports and dashboards

Additional information is stored on the schedule including product, margin details and ‘actuals’. This information is available for reports and dashboards.

Track revenue over time against Target

Each custom schedule links automatically to a Target record. This means salespeople and managers can immediately assess whether there is sufficient committed and scheduled revenue over time to meet quota.

Straight-line and S-curve revenue forecast

It’s easy to understand why you want to schedule revenue over time in salesforce using a straight line.

Service contracts, maintenance agreements, repayments on capital goods, Saas licenses – they all need the ability to track revenue over time in a straight line.

However, project work is often different. For example, frequently you have a period of mobilization in the early stages. Then you get into the heavy lifting of the project. Finally a period of testing and commissioning in which the revenue tails off.

An s-curve therefore accurately tracks the revenue on month projects. With the GSP Custom Schedule App, simply select the S-curve option in defining the schedule. The app automatically schedules revenue over time in an S-curve profile.

Advantages of standard product schedules

  • Easy for salespeople to us.
  • Flexibility to define different revenue profiles over time for each opportunity product.
  • Forecast accuracy is maintained because schedules automatically shift when the close date changes.
  • Track additional information over time including margin and actuals.
  • Track pipeline and committed revenue over time in salesforce.

Disadvantages of standard product schedules

  • Requires more setup than the standard product schedule feature (although our app takes care of this).

Many business already track revenue over time salesforce. Don’t hesitate to get in touch if you need our help in becoming one of them.

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How To Make Your CRM Project A Success

How To Make Your CRM Project A Success

There’s no shortage of advice if you Google ‘CRM project success’.

Set clear goals. Align the CRM project with your business strategy. Get executive buy-in. Manage stakeholders. Clean up data. Deliver training – lots of it.

I don’t disagree.

Yet I find there is a problem.

This advice is too generic.

These factors will influence the success of any business project. There’s nothing that applies specifically to CRM projects.

Do all of these things and your CRM project might still fail.

We are after something different.

We need the critical factors that deliver CRM project success. The drivers that apply specifically to CRM projects. The things that, if you don’t do them, mean that your CRM project is likely to fail.

For that, you need to look deeper.

10 Specific Drivers Of CRM Project Success

Here they are. Based on my experience of hundreds of implementations – the specific drivers of CRM project success.

Not every driver will apply equally to every CRM project. Use your judgement. However, they do apply equally to new CRM project implementations AND benefit expansion in existing systems.

1. Re-design your Lead to Opportunity process successfully

CRM project success demands that business processes are re-designed.

Nowhere is this more important than the Lead to Opportunity process.

Unfortunately, no business process re-design effort results in more confusion, ambiguity and CRM project failure.

This process goes to the heart of CRM project implementation.

Lead-to-Opportunity represents the critical set of activities that develop good quality, sales-ready leads. This puts them in the hands of people that can execute the sales process.

However, to achieve CRM project success, there are key areas to pay attention to when re-designing your Lead to Opportunity process.

  • Do not transfer leads to salespeople too early. Salespeople will quickly start to ignore what they perceive to be poor quality leads.
  • Convert each Lead to an Account, Contact and Opportunity before transferring it to a salesperson. This is critical for accurate Campaign ROI metrics.
  • Create separate pipeline reports and dashboard charts for early-stage opportunities. If appropriate, exclude these initial opportunities from core pipeline reports.
  • Educate salespeople and managers that it is acceptable to qualify-out early stage opportunities. If you are going to lose, lose early.
  • Create a feedback mechanism from Sales to Marketing or Inside Sales. Insist on feedback from every Lead transferred to Sales. Review this feedback regularly to improve lead generation and qualification processes.

The Lead to Opportunity processes often provokes fraught discussion. In effective re-design of this process puts CRM project success at risk. Use these principles to avoid that.

Key resource


2. Use this four-step approach to user adoption

If users do not fully engage with your system, then no matter what else happens, your CRM project will not be a success.

Too often, user adoption equates with training. That’s a mistake. Deliver as much training as you like and you still cannot guarantee CRM project success.

Apply four steps to secure full user adoption CRM project success.

  • Create an advantage to using the system. For example, for front-line sales people, it has to be easier to do their jobs using the system, than not using it.
  • Create a disadvantage to not using the system. It has to be easier for sales people to do their jobs using the system that not using it. Conversely, it has to be harder for them if they don’t use it. In other words, continuing to work with current methods has to be more difficult than using the CRM system. This also means all pipeline reviews, 1.1s and team meetings are based on the data in the system, not separately stored on spreadsheets.
  • Measure user adoption. You cannot manage it if you don’t measure it. Collect metrics that measure user adoption in your business. By the way, login frequency isn’t one of them.
  • Proactively manage user adoption. This is why you need the metrics. Make it clear what’s expected. Use your metrics to manage user adoption the way you would for any other topic. Reward and complement people for doing well. Take remedial action with those that fall below standard.

Key resource


3. Install the right set of dashboards

Getting visibility of the sales pipeline and sales performance is the number one reason why companies invest in CRM projects.

Yet often, these companies fail to implement the dashboard charts and reports that deliver that visibility.

Sales dashboards must provide three things for CRM project success:

  • Visibility of the size of the pipeline.
  • Information on the trend in the pipeline.
  • Key metrics on the quality of the pipeline.

Without this information, sales managers are flying blind. That’s a guarantee of CRM project failure not success.

Addressing this key issue is relatively easy. Start by installing our free GSP Sales Dashboard from the AppExchange. It’s fully customizable so you can adapt it to the specific needs of your business.

Key resource

12 Must Have Charts For Your Salesforce Dashboard

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4. Train managers how to be a coach not a pundit

During the match, pundits sit in the TV gantry pointing out mistakes. They pore over errors. They point out the reasons for defeat. A critical eye examines performance statistics and metrics.

Coaches – at least good ones – do things differently. They explain how to do things better. They teach techniques that lead to improvement. Coaches recognize and accept that mistakes happen and that these represent learning opportunities.

Having the right set of dashboards is one thing. Knowing how to use them to drive sales performance across the team is another.

CRM project success depends upon sales managers and leaders using dashboards and reports to improve performance. It means each one has to be a coach, not a pundit.

Using dashboards as a pundit means you risk encouraging the very behaviour you want to remove. Sandbagging occurs – deals are left out of the CRM system until the sales person is confident an opportunity can be won. Dormant opportunities remain open. Updating of opportunities takes place only at the last minute.

The result? The real time, robust visibility of the sales pipeline the CRM project can deliver, goes out the window.

Effective sales leaders recognize no single chart gives the complete picture. They understand how to combine information from different dashboards charts to identify specific improvements available to each individual and team.

In many businesses, this will require a change in behavior and education of sales managers.

Do not assume this will happen automatically. In many cases, it won’t. CRM project success depends on training managers how to be coaches not pundits.

Key resource

12 Must Have Charts For Your Salesforce Dashboard

Download the FREE eBook today from our website

Get it now!

5. Start as you mean to go on (avoid a soft launch)

A soft launch means making the system available to users, but not insisting they engage with it to the maximum.

Sometimes a soft launch occurs when the project team believe the system is not fully ready and perfect. They worry about the impact. After all, there is so much else going on in the business.

Don’t let this happen. CRM project success requires a hard launch.

Let’s be clear. In many businesses, a pilot with a specific group of users is a sensible thing to do. It contributes to CRM project success.

Likewise, a phased rollout is also logical. Often you simply cannot physically train all the users in one go. Instead, do it country-by-country or region-by-region. Whatever deployment plan makes sense in your business.

However, as soon as the CRM project goes live, make sure everyone understands the importance of keeping data and records up to date.

For example, one of the biggest sins in pipeline visibility is opportunities with an out of date Close Dates. This distorts the accuracy of future revenue the CRM project aims to deliver.

In the first week, the first month, the first quarter, track down these opportunities. Don’t stand for them being out of date. Zone-in on salespeople that need to update their deals.

Here’s another example. Tracking the buying center on a B2B deal is often critical to success. So in the CRM system, make sure the stakeholders on the customer side are recorded as playing a role on the opportunity.

Here’s the thing. If you tolerate sloppiness in the early days, your business will find it mighty hard to recover the situation.

Instead, make it clear from day 1 what is expected. CRM project success in your business means you start as you mean to go on.


6. Include Target Tracking in the solution

Targets are key to salespeople.

There isn’t a salesperson worth her salt that doesn’t measure her performance against target each month or quarter.

Yet very often, sales performance versus target is tracked outside the CRM system. This waters-down the importance and usefulness of the CRM system to salespeople and managers.

Incorporate target tracking directly into your system. It’s a core component of CRM project success.

However, that can be more difficult than it seems.

For example, in salesforce CRM, many businesses find the Forecasts tab difficult to use.

Alternatively, if targets you base targets on scheduled revenue over time, then the target tracking mechanism needs to be more sophisticated.

In both cases, the target tracking mechanism needs to reflect both historical performance and compare future potential revenue against quota. In other words, it must compare pipeline and weighted pipeline with the target for next month or next quarter.

Fortunately, there are ways to do all of these things in salesforce and other CRM systems. Follow our recommended resources below for more information.

Key resources

7. Create a robust, scalable architecture

The best thing about CRM systems such as salesforce is that it’s easy to add a field.

The worst thing about CRM systems such as salesforce is that it’s easy to add a field.

Over-enthusiastic creation of fields and other features quickly swamps salespeople and other users. Be judicious.

Think about it like this. If you are writing a 20-page slide deck, it’s best not to start by typing the first bullet point into slide 1.

Instead, get a sheet of paper and plan your presentation. Start with the end in mind – the key message you intend to deliver. Work backwards, structuring your slides and specific points within this context.

CRM project success requires the same approach. The best starting point for a CRM architecture is not the creation of the first field.

Better by far, to stand in front of a whiteboard with the project team and plan out your architecture. Think about improving your processes. Translate this business architecture into a system design that is robust, scalable and meets the objectives.

One more point on this. When the design of CRM projects goes wrong, it goes wrong at the start.

It may not be immediately obvious, but the underlying architecture of CRM systems like salesforce is logical and robust. Work with this architecture, don’t fight it.

Key resource

If you are in any doubt about how the core architecture of salesforce works then call us. We will jump on a web meeting and I’ll explain it to you.


8. Import (reasonably) clean data about at the outset

Your business already has a myriad of data about leads, contacts, customers, prospects, current and past opportunities.

This data may currently be in a legacy CRM system. Perhaps it all currently sits in spreadsheets or Outlook folders.

In either case, for CRM project success, import this data into your new system before you go live. If you leave it until later, it will never happen.

Here are examples of the benefits of importing this data at the outset.

  • User adoption will improve significantly. Salespeople (in particular) and other users will not want to enter data that already exists elsewhere. They will quickly revert to using their existing tools.
  • Productivity and efficiency is increased. For the same reason – manually typing large volumes of data is not a good use of anyone’s time.
  • Realize marketing and customer communication benefits from the outset. No need to wait until there is a critical mass of data.

One other key reason.

This is an excellent opportunity to clean up and consolidate the data. In fact, that’s an imperative before you import the data. The result doesn’t have to be perfect. However, CRM project success demands an intensive effort on data improvement and migration to bring it to an acceptable level.

Key resource


9. Use Products (irrespective of what you sell)

This is not an article on CRM features or functionality.

Nevertheless, there’s one feature that successful CRM projects consistently use.


It doesn’t matter whether you sell physical items, services or something in between. Using the Products feature has multiple benefits. It:

  • Turns bland opportunities into specific deals. This means visibility of the sales pipeline and sales performance is dramatically improved.
  • Improves management reporting and analysis. For example, margin and average deal size analysis.
  • Opens the door to multiple other benefits. For example, discount control, electronic signatures, streamlined fulfilment processes.
  • Increased pricing flexibility. For example, tailor prices to specific customer segments, geographical areas and distribution channels.
  • Improved forecasting of scheduled revenue over time. This means understanding how committed and pipeline scheduled revenue compares to target.

However, Products is also one of the more complex functional areas to set up in CRM systems. That is especially true if you already have an ERP or other back-end system that controls pricing, availability and fulfilment.

Nevertheless, the extensive range of benefits makes it worth it. Successful CRM projects invariably use Products.

Key resource


10. Get independent help

You would say this, wouldn’t you, Gary?

Well yes, I would.

I started implementing cloud-based CRM systems in the late ’90s. Just as the concept of business web computing was taking hold.

At that time, CRM systems such as salesforce were simple, uncomplicated. They offered rudimentary sales force automation and customer support features. Businesses implemented them as tactical solutions, to solve specific issues in sales or customer service.

Now things are different.

Today salesforce is gargantuan. There’s a wealth of features. Companies implement CRM for strategic and compelling benefits.

Ironically, that means full benefit realization is harder to achieve. However when you do, the benefits are so much bigger.

To secure those benefits, CRM project success requires independent expertise, experience, advice and guidance.

You’ve read the 10 specific drives of CRM project success. For further advice on how to make your CRM project successful, then please, don’t hesitate to get in touch.

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Is Your Sales Funnel Big Enough to Reach Your Revenue Target?

Is Your Sales Funnel Big Enough to Reach Your Revenue Target?

Many managers that use salesforce are still not gaining the sales funnel insight they expected.

In particular, they want to know much more about the sales funnel and their revenue goals.

Sure, they’ve got salesforce dashboards set up. These give visibility of the sales funnel and sales performance. But its still a challenge to create a robust sales forecast.

That means they can’t use salesforce to get a definitive answer to that most fundamental of questions.

Is my sales funnel big enough to make my revenue target?

But it’s worse than that.

Knowing you’ve enough sales funnel to make your target for this month is one thing. But what if the sales funnel only contains early-stage Opportunities? Deals that may take two or three months to close. How confident can you be then of achieving this months’ target?

Fortunately there’s a sure-fire way to use salesforce.com to know whether you’ve enough sales funnel – of the right type – to meet your revenue target.

Not just the target for this month. The quarter’s sales target too. Indeed, businesses that track the sales funnel in salesforce in the way we describe here, get a clear picture of how likely they are to achieve annual, quarterly and monthly revenue targets.

Here’s how it works. And when you’re done watch the accompanying video.

Monthly Sales Target

First you need a new custom object and a new tab. Let’s call it Monthly Sales Target, although it doesn’t really matter how it’s named. If Monthly Sales Quota, Revenue Objective or Monthly Sales Forecast make more sense in your business, that’s fine.

The Monthly Sales Target stores the sales target for each sales person for each month. There’s a record in salesforce for each sales person for every month of the year. If you track performance against target quarterly, rather than monthly, that’s fine. There’s simply going to be four records per sales person per year, rather than 12.

The ‘Month’ and ‘Year’ fields on the Monthly Sales Target tell us the time period to which the target relates.

Here’s the most important field, Sales Target. This is the target or quota for the sales person for that month. Every month may have the same Sales Target figure, or they can vary to reflect seasonal trends. It’s up to you.

Compare Sales Funnel to Monthly Sales Target

Here’s how you know whether there’s enough sales funnel to meet the Sales Target figure.

You need some code that automatically links each Opportunity to the relevant Monthly Sales Target. You can either build the code yourself or you can purchase our pre-built target tracker app.

Here’s what the code does. It looks at the Opportunity Owner and the Opportunity Close Date. Then it links the Opportunity to the Monthly Sales Target that matches the Owner and the From / To dates.

Link the sales funnel Opportunity to the Monthly Sales Target

If the Close Date subsequently changes, then the code ‘unhooks’ the Opportunity from that particular Monthly Sales Target and links it to a new one.

12 Must Have Charts For Your Salesforce Dashboard

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Sales Funnel Metrics

Next, the code ‘rolls-up’ the value of all Opportunities to the Monthly Sales Target.

These metrics indicate whether the sales funnel is big enough to meet the revenue target.

Critical metrics on the Monthly Sales Target help you understand whether you’ve enough sales funnel to meet your revenue target. These include:

  • Won Amount. The value of all Opportunities that have an Opportunity Stage of Closed Won.
  • Funnel Amount. The value of all Opportunities in the sales funnel.
  • Weighted Sales Funnel. The value of all Opportunities in the sales funnel, based on the Expected Amount (the Opportunity Amount multiplied by the Probability).
  • Expected Revenue. The value of Closed Won Opportunities plus the Weighted Sales Funnel.

In many businesses, this last one is a killer metric.

Expected Revenue

The Expected (or Weighted) Revenue figure shows whether this sales person has enough sales funnel, combined with the business they’ve already closed, to meet their sales target.

In our example above, the month target is £30,000, but the Expected Revenue is just under £25,000. We don’t have enough! This is emphasized in the percentage figures on the right. The embedded chart also shows a shortfall in the sales funnel compared to target.

But there’s more to it than that.

Sales Funnel Shape

Look at the chart to the right of the salesforce page. It provides more detail on the sales funnel Opportunities associated with this Monthly Sales Target record.

Look at the Monthly Sales Target for the current month. Let’s say your deals typically run through a 90-day sales cycle. That means you don’t want to see many deals forecast to close this month, in the Prospecting Stage. It’s likely these deals aren’t going to close in the current month.

On the other hand, if it’s the Monthly Sales Target for three months’ time, then look at the sales funnel shape. Lots of early-stage funnel Opportunities due to close in three months is probably a good thing.

Sales Funnel Dashboard

But what about the company or team-level sales target?

Here’s how we find out if the sales funnel is big enough to meet these revenue targets.

The dashboard chart and underlying report give us that information. And using Expected Revenue, the reports give us a robust sales forecast. One that will stand up to detailed scrutiny.

Sales funnel compared to revenue targets using a salesforce dashboard.

Of course, none of this replaces the need for proper sales funnel management.

The Opportunity Probability still needs to be reliable on each deal. But it does give the sales manager the tools necessary for effective sales funnel management. This is especially the case if the Monthly Sales Target reports are used in conjunction with other salesforce dashboards and reports that identify the poor quality deals. These are the deals that over-inflate your sales funnel. Weed out the lame ducks that give a false sense of future revenue.

And finally, get in touch today if you’d like to test drive our target tracker app for yourself.

Watch Gary demonstrate the salesforce funnel management solution described in this blog in this video.

Track Sales Performance And Pipeline Versus Target

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Volume Based Pricing | 4 Great Ways To Get On The Money

Volume Based Pricing | 4 Great Ways To Get On The Money

Daniel Tyler creates an opportunity in salesforce.

Then he opens Excel.

Daniel tinkers around in the pricing spreadsheet for 10 minutes. It happens to be the spreadsheet from three price revisions ago, but never mind.

The spreadsheet gives Daniel the volume based prices he’s looking for. He types the figures into the Quantity and Sales Price fields in salesforce and hits enter.

Then Daniel does the same thing for the other products on his opportunity.

Sound familiar? Or do your salespeople reference a big ring binder file rather than a spreadsheet?

Either way, it’s a common approach to volume based pricing in salesforce.

And it sucks.

Here’s what’s wrong with it:

  • Unnecessary manual effort for salespeople.
  • Increased risk of getting volume based pricing wrong.
  • Inability to track discounts accurately.
  • No guarantee the correct external pricing schedule applies each time.
  • Unnecessary difficulty in calculating product margin accurately.

Furthermore, it is impossible to implement the expert advice on controlling discounts that Tony Hodgson, CEO of Pricing Solutions gave us.

The problem is there’s no standard way to manage volume based pricing in salesforce.

Sales Price x Quantity = Opportunity Line Item Price. That’s as sophisticated as it gets.

However, we helped Daniel’s company fix that problem. You can fix it too.

Here are four ways to manage volume based pricing in salesforce.

Option 1 – Volume based pricing by Bands

This approach to volume based pricing means basing the sales price to the customer on whichever band they fall into.

For example, your pricing table for a product may look like this.

Product Name: XYZSales Price Per Unit
1 to 10 units$100
11 to 30 units$95
31 to 100 units$90
…..and so on.

If the customer buys a quantity of 25, the unit price for the entire purchase is $98. If they buy 35, the unit price for the entire purchase is $95.

In other words, the salesperson bases the price for the entire quantity of the product on the relevant band. Of course, if there are multiple products on the opportunity, each one can have a separate set of price bands.

How to implement volume based pricing by band in salesforce

There are two ways to do this.

Using standard salesforce functionality, create a separate Product record for each band. For example, with the XYZ Product, you will have the following products:

XYZ Product 1 – 10                           $100

XYZ Product 11 – 30                         $95

XYZ Product 31 – 100                      $90

And so on.

This is by far the most common approach to volume based pricing in salesforce.

Tip: The band approach to volume based pricing mean an increase in the number of products in salesforce. Consider using the Product Selection Wizard to make it easier for salespeople to select products and add them to opportunities or quotes.

The second option is to use our volume based pricing app. This removes the needs to create multiple products. The salesperson simply selects the product, enters the quantity, and the volume based pricing app does the work of calculating the correct price.

Advantages of band based volume pricing:

  • Easy for the customer to understand.
  • Easy for salespeople to understand
  • Straightforward to implement in salesforce.

Disadvantages of band based volume pricing:

  • Lower average unit price and margin on each opportunity compared to other methods.
  • Significant increase in the number of products stored in salesforce.
  • Quotes and proposals produced directly from salesforce include the band within the product name.

The main issue with band based volume pricing is this.

The bands encourage customers to purchase higher volume in order to benefit from a reduced price. That’s a good thing in terms of volume.

On the other hand, the average unit price reduces across the entire sale. That’s because the lower price applies to ALL units.Volume based pricing by band results in lower average margin for all units.This results in lower total margin. And that, of course, is not such a good thing.

The tier approach to volume based pricing is a way to overcome these issues.

Option 2 – Volume based pricing by Tiers

Volume based pricing by tiers is a variation on pricing by bands. The individual tiers may look the same as for bands in the pricing table.

Product Name: XYZSales Price Per Unit
1 to 10 units$100
11 to 30 units$95
31 to 100 units$90
…..and so on.


But here’s the key difference.

In band pricing, the customer pays the same price for all units. In tier pricing, the customer pays the unit price for the first tier, the unit price for the second tier, and so on.

In our example, the customer will pay $100 for 1 to 10 units; $95 for units 11 to 30; $90 for units 31 to 100. And so on.

Consequently, the tiers approach to volume based pricing means customers cannot benefit from a lower average price simply through a small increase in quantity.

The result is a higher average unit price compared to band pricing and increased average deal size. It means there’s also a higher total margin on the opportunity.

Here’s how the tier and band approach to volume based pricing compare.Volume based pricing by tiers produces higher average margin than by bands.

How to implement volume based pricing by tier in salesforce

There is no ‘standard’ way to implement the tier approach to volume based pricing in salesforce. However, our volume based pricing app gives salespeople an automated way to calculate tier based pricing on opportunities.

Advantages of tier approach to volume based pricing:

  • Total price to the customer more accurately reflects the volume purchased.
  • Avoids the situation where you are selling more but making less money.
  • No need to create multiple versions of the same product in salesforce.

Disadvantages of band based volume pricing:

  • Harder for prospect to see price at a glance.
  • More difficult for salespeople and marketing communications to give a straightforward product price.

Option 3 – Volume based pricing by increments

The incremental approach to volume based pricing is a more sophisticated version of tiers.

It means the unit prices decreases slightly lower for each reduction of 1 in the volume.

Here’s an example of incremental volume based pricing.

QuantityUnit Price
And so on


The incremental approach to volume based pricing allows a different shape of pricing curve. This is appropriate for companies that want a more fine-tuned pricing arrangement than tiers.

Customer example of incremental volume based pricing

ILX sells e-learning and face-to-face project management courses and exams. Sometimes they sell to individual members of the public. Small, medium and large organizations are also customers. These customers extend over five continents.

The company uses incremental pricing to manage this.

This allows ILX to take a more flexible approach to pricing. Here’s what the three volume based pricing methods look like for ILX.Incremental volume based pricing increases the margin compared to pricing by bands or tiers.The incremental approach to volume based pricing allows for a straight line or curve approach to pricing. The curve flattens with higher volume.

ILX goes a step further.

The company has created pricing models for different locations. These models reflect the market conditions in each location.

For face-to-face training, ILX also stores the cost of fulfilment on individual price book entries. This varies by location. Therefore, by combining the location-specific pricing model with the cost of fulfilment, ILX gets a robust and accurate view of the margin on all opportunities.

An overview of how ILX uses product based pricing, and has innovated with many other salesforce features, is available here.

How to implement incremental volume based pricing in salesforce

As with tier pricing, there is no ‘standard’ way to implement the incremental approach to volume based pricing in salesforce.

However, along with bands and tiers, we’ve incorporated incremental pricing in our volume based pricing app.

Advantages of tier approach to volume based pricing:

  • Align the pricing strategy more closely with market segments.
  • Higher overall margin compared to other pricing options.
  • Avoids creating multiple versions of each product.

Disadvantages of band based volume pricing:

  • Harder for prospect to see price at a glance.
  • More difficult for salespeople and marketing communications to give a straightforward product price.

Option 4 – Volume based pricing by product bundles

Product bundles allow customers to buy multiple products in return for a discount or other benefit.  As such, it’s a variation of volume based pricing.

For example, a bundle may contain five products. The customer is motivated to buy the bundle by virtue of a discount. Perhaps she might otherwise have bought only three or four products.

How to implement product bundles in salesforce

The Product Bundle Wizard app makes it easy for companies to sell combinations of products in salesforce.

The app includes a wizard that helps system administrators and product managers create bundles. Salespeople view the bundles in logical tree structure. This makes them easy to identify and select.

Advantages of product bundle approach to volume based pricing:

  • Encourages customers to make larger overall purchase.
  • Pricing and margins controlled within the bundle.
  • Easy for the customer to understand the overall bundle package and price.

Disadvantages of band based volume pricing:

  • Customers may constrain their overall purchase in order to take advantage of a bundle price (perhaps our customer might have bought six products if the bundle wasn’t available?).

Which volume based pricing approach to use?

Look at the average volume per order for each of your products.

The higher the average quantity, the more the difference in volume between the bands tends to grow. Companies often have narrow bands at low volume and larger bands at high volume. This means larger the average order, the more you will be giving away in margin.

However, the band approach to volume based pricing is appropriate when:

  • Volumes are relatively low and bands are narrow.
  • The price implied by the band is only a guide. There is price negotiation between the salesperson and the customer before the order is place.

Conversely, as volumes rise, consider the tier approach to volume based pricing. This is appropriate when:

  • You need to manage margins carefully than the band approach allows.
  • The visible tiers motivate customers to buy increased volume.

The incremental approach provides a granular solution to volume based pricing. Use this when:

  • Tight control over margins is required.
  • Explicit visibility of the benefits of increasing purchasing volume is less important. After all, using the incremental approach, it is harder to communicate the benefits of volume based pricing visible on your web site or other corporate literature.

Remember that you do not need to use the same approach for every product in your portfolio. Combine them within the same product portfolio. For example, the band approach may be appropriate with some products, the tier approach with others, and incremental volume based pricing with yet more.

And of course, if it makes sense in your business to bundle products together, then do so.

Daniel’s approach to volume based pricing

Here’s what Daniel’s company did.

In salesforce, we implemented the tier solution to volume based pricing for the majority of their products using our app. This streamlines the process for Daniel and his colleagues. No more spreadsheets!

For some low volume, less commonly sold products, they implemented the band approach. For these products, there is a lengthy and highly interactive sales process. As such, the prices within the bands are only a guide to the sales team during this process.

The company did two further things. They implemented the Product Selection Wizard. This makes it much easier than the standard layout in salesforce to add products to opportunities. They also implemented the Bundle Selection Wizard. This makes it easy to create and promote logical groupings of products that benefit the customer.

The result? Sales forecasts are more accurate because each opportunity accurately reflects the products the customer is considering buying. User adoption of salesforce is up. Salespeople are more efficient. And there is far greater control over pricing and discounts offered to customers.

In addition, there’s one more result. A 4% increase in average margin per opportunity. And that, I think you’ll agree, is well worth going after.

Further reading

Volume Pricing App

Here’s the Volume Based Pricing app in action. Get in touch today for a free trial.

Broken lead process in salesforce? Here’s how to fix it

Broken lead process in salesforce? Here’s how to fix it

You probably don’t remember Monty Python’s Flying Circus.

It’s a surreal comedy group from the 1970’s. It’s how John Cleese and Michael Palin first made their name.

In one famous sketch, Palin arrives at the Argument Clinic or for an argument. Cleese is happy to oblige. They go round in circles, arguing the same point over.

You can recreate a similar scene.

Ask a room full of Sales and Marketing people agree how the lead process should work in salesforce.

You’re guaranteed a bun fight.

I’ve run hundreds of salesforce implementation workshops. And here’s something I’ve experienced. No subject causes more debate than that surrounding the lead process.

Yet, resolving this debate is critical to an effective lead process in salesforce. Unfortunately, often that doesn’t happen with clarity.

The outcome is an ineffective lead process. That means ineffective lead qualification, reduced revenue and poor marketing and sales performance information.

Let’s understand what causes this debate. Then we will define a lead process in salesforce.

(By the way, don’t forget, you can download the lead process diagrams used in this article).

Difference between a lead and an opportunity

There is often dis-agreement between Sales and Marketing on the difference between a lead and an opportunity. Yet clarity is essential.

But that can be harder than it sounds.

Why is there so much confusion? After all, most Sales and Marketing people will acknowledge that a lead is the first step in the sales cycle.

Here’s why it’s a problem.

Salesperson’s definition of a lead

To a salesperson, a Lead can come as easily from an existing customer or known prospect, as a brand new one.

The lead can be repeat business for an existing customer. Or a new prospect, freshly arrived through the door.

Either way, the sales process has started. It may not be advanced enough to warrant an Opportunity in salesforce.com. But sales engagement has at least commenced.

So, from a salesperson’s perspective, a lead reflects a broad range of early stage, potential opportunities that require immediate action.

Marketing person’s definition of a lead

A Marketing person’s perception of a lead can vary in two important ways.

First, a Lead is often a person or business that will potentially make a purchase at some undetermined point in the future.

Marketing may hand the lead to Sales, but not necessarily with the expectation that a sale will immediately result. The lead is a potential customer that may engage in a future sales process. Conversely, to a salesperson, a lead is someone entering the sales process right now.

Second, to Marketing a lead is very often a new company or person. The business or contact may not have existed previously in the database. Indeed, the role of Marketing in many businesses is to increase the overall lead database for long-term benefit.

Sales are under pressure to close deals in the short term. Marketing want to nurture the Lead. It’s this contrast in expectations that frequently results in Sales to complaining about the quality of Leads created by Marketing.

Salesforce lead process

Sales and Marketing often fail to agree on the difference between a lead and an Opportunity. This directly obstructs the implementation of an effective lead process in salesforce.

So what constitutes a lead in the salesforce.com CRM system?

In fact, salesforce uses the term Lead in several different ways. Let’s take them step by step.

  • Lead as a brand new enquiry

Start by thinking of a Lead in salesforce as a brand new enquiry, from a business and person you’ve never previously heard of.

For example, let’s say you have a Web-to-Lead form set up on your web site. Web-to-Lead is an easy way to integrate salesforce with your web site. It means anyone that fills in your Contact Us form will be created automatically in salesforce as a lead.

So, the lead is created. What’s the first thing that should happen in the lead process? Check for duplicates by clicking on the Find Duplicates button on the Lead page layout.

This will identify any matching Leads or Contacts that already exist in your salesforce database. Let’s assume you don’t find any.

Now you make an outbound telephone call to the Lead. Essentially, one of three outcomes will result from this part of the lead process.

  • The Lead is a dead end

It turns out the person isn’t interested in any further dialogue. Perhaps it was a student simply looking for research information. Either way, set the Lead Status to Closed. You don’t necessarily delete the Lead from the database, but no further action is anticipated.

  • The Lead is a definite maybe

The Lead is moderately interested in your products and services. He doesn’t want to speak to a sales person – at least not yet. But you agree to send a brochure, product specification or price list. So this time set the Lead Status to Contacted. You might also create a follow up Task to call the Lead again in the future.

  • The Lead is a sales Opportunity

The Lead agrees to a meeting or phone call with a Sales person. Or he requests a quote. In other words, he gives you some indication that he’s a legitimate potential customer. He’s a Qualified Lead.

This time leave the Lead Status alone. Instead, click on the Convert Lead button. Salesforce will convert the Lead into three separate records; an Account; Contact; and Opportunity.

Here’s the process in a flow chart diagram.

Lead process diagram for qualifying a new Lead.

The Account represents the business or organisation. The Contact is the person employed by that organisation. And the Opportunity represents the potential sales deal.

It’s this early stage Opportunity that many Sales people will regard as a Lead.

Indeed Sales people may be reluctant to use the term Opportunity. It raises expectations about the outcome. It creates visibility of the deal in the sales pipeline dashboard. And from the salesperson’s perspective, the Lead may – or may not – have been properly qualified by Marketing before it was converted to an Account, Contact and Opportunity.

All legitimate issues. Before we address them, let’s deal with several other ways salesforce uses the term Lead.

  • Leads that match existing Lead records

Let’s go to back to our person that filled in the Contact Us form on your web site.

In our example, we assumed that no existing Lead or Contact matched our new Lead. We established this by clicking on the Find Duplicates button on the Lead page layout.

What if one or more matching Leads had been found?

Click the Find Duplicates button on the Lead page layout to find matching leads

No problem. Use the Merge Leads button to merge the various Leads into a single record. Then make your qualification call.

Here’s the lead process diagram.

Lead process diagram for qualifying a lead with match to existing lead.

  • Leads that match existing Contact records

How can an existing Contact be created as a Lead in salesforce? There’s a number of ways.

For example, Leads can be created by importing the spreadsheet that contains a list of people that came to a booth at an exhibition. Some of those people may well be existing Contacts.

Or, a Web-to-Lead form on your web site that allows visitors to register for an event. When an existing Contact registers she’s created as a Lead. The same thing happens if you’re using Web-to-Lead to enable visitors to download a document from your web site.

In any of these cases, when you click on the Find Duplicates button you may find there’s a matching Contact.

Click the Find Duplicates button to find Leads that match.

Here’s three ways to deal with the Contact-as-a-Lead situation.

  • Convert the Lead without making a Qualification call

    During the Lead conversion, salesforce will help you merge the Lead into the existing Contact record. If the Account Owner is already actively engaged with the Contact – on an existing Opportunity for example – then perhaps it isn’t appropriate to make the qualification call.

  • Convert the Lead and then make a Qualification call

    This is the common approach when it’s the Account Owner that is dealing with the Lead. He or she merges the Lead into the Contact record and then makes a call to the Contact.

  • Make a qualification call before Converting the Lead

    This approach is used most frequently when Marketing or Inside Sales is dealing with the Lead. They make call to the Lead, cognisant of the fact that the person already has a relationship with the company. Following the conversation the Lead is converted, but Marketing or Inside Sales make a human decision on whether to simultaneously create an Opportunity.

Here’s the process diagram for the last of these scenarios.

Lead process diagram for lead qualification with match to existing account or contact.

To Convert a Lead without creating an Opportunity, check the box “Do not create Opportunity upon conversion” during the convert process. It’s underneath the Opportunity name on the Convert Lead page layout.

At the end of the Monty Python scene, Palin and Cleese continue to argue about whether the argument is finished.

You can do better than that. You can resolve the argument about lead processes in the workshop. And then build the lead process in salesforce. Period.

Free lead process diagram download

Are the lead process diagrams in this article useful to you? Download the diagrams in Powerpoint. Use them starting point for creating your own lead management process.

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2 Quick Wins Using Web To Lead You Can Implement Today

2 Quick Wins Using Web To Lead You Can Implement Today

Here are two quick wins using web to lead that many companies overlook:

  1. Web to lead on their Contact Us page.
  2. Web to lead for downloadable web content.

The fact that many companies don’t do this means they are not generating leads as efficiently as they should.

The result is fewer leads, and less sales-ready opportunities.

Yet web to lead is quick and easy to do. Read on to discover the benefits. Then have your system administrator implement these quick wins today.

1. Web To Lead ‘Contact Us’ page

I doubt there is a business that doesn’t have a Contact Us page on their web site.

But many companies that own salesforce licenses are missing a trick. They are not using web to lead on their Contact Us page.

Instead, they have the prospect fill in a form. Then they send the form details to an email address. (Or even worse, they simply invite the prospect to send an email to info@). This means it is more time consuming, and requires more effort, to respond to the enquiry.

A salesforce web to lead form is a quick win in this situation. Here are five reasons you should be using web to lead on your Contact Us page.

  1. Populate the lead information into salesforce without any extra effort. No re-keying of data involved.
  2. Automatically send an acknowledgement email. Let the prospect know you have received her enquiry.
  3. Immediately assign the new lead to someone qualified to deal with the enquiry. I’ve commented below on who the right person might be.
  4. Alert the person to whom you have sent the lead with an automated email.
  5. Capture hidden information that will improve your marketing metrics. For example, link the lead to a relevant Campaign. Automatically set the Lead Source field.

I’ve helped hundreds of companies improve their lead process. And in every case, I’ve found that the quicker you respond to a new lead, the higher the chance of a successful outcome.

These probably ring true in your own experience.

Web to lead means you get the information into salesforce, acknowledge the customer and assign the lead to the right person, all in the blink of an eye.

Who is the right person to receive Contact Us enquiries?

Often the immediate response is to assign web to lead prospects to a salesperson.

But hold on. That might not be the best way. Here’s why.

  • Salespeople are busy dealing with opportunities. Which is the way you want it. Most salespeople will see a new web lead as lower priority than an open opportunity. That may mean a slower response.
  • Salespeople are often out in the field. Speed is of the essence. You need to respond to the web to lead prospect quickly. Leaving the response until the salesperson has downtime is a sure-fire way to neglect new leads.
  • The new enquiry may not be a sales lead. It may be a technical query, vendor approach, potential employee or even spam. Have someone qualify and validate new enquiries. Then, when the person is sales-ready, assign the lead to a salesperson.

In many businesses, web to lead prospects are immediately assigned to an inside salesperson, telemarketer or marketing employee.

This person qualifies the lead. He may also add additional company or person-specific information. In short, assign qualified leads to salespeople. Deal with all other enquiries in a different way.

For more information on the process for dealing with web leads (including free process diagrams that you can download), review our blog post, The Difference Between A Lead and an Opportunity In Salesforce.

Multiple Contact Us pages

Don’t think you can only have one web to lead Contact Us form on your web site. You can have as many as you like.

For example, if your web site is in multiple languages, create a different web to lead form for each language. Send the acknowledgement email based on the language of the form.

Even if the site is in a single language, you may still have many different pages in which the customer can get in touch.

In that case, you’ve two choices. Use the same web to lead form in each location. Or go the extra mile – create a different web to lead form in each case. That way you can set the Lead Source field differently for each form. It’s an easy way to understand where your sales enquiries are coming from.

So that’s the first quick win. Get a web to lead form set up on your Contact Us page today. As always, if you need some help, go to our own Contact Us page and we’ll answer your question. Quickly, I hope!

2. Web to lead for content download

Here’s the second quick win you can implement easily using web to lead.

Use web to lead to manage content downloads on your web site.

The days of the salesperson being in charge of the flow of information with a prospect are long gone. Nowadays, with any important buying decision, prospects expect to conduct their own extensive web research. They do this research long before they’re ready to speak to a salesperson.

Businesses that generate revenue efficiently have acknowledged the buying process has changed.

Efficient revenue generation means helping prospects conduct this preliminary research. This builds trust, credibility and engagement with prospects. This happens long before a dialogue has started between the salesperson and her prospect.

Downloadable content on your web site can include eBooks, case studies, white papers, checklists and other useful material.

But here’s the thing. You can ‘sell’ your best content. The price? The cost of an email address.

Content download example

Look at our most popular blog post, 12 Charts That Should Be On Your Salesforce Dashboard.

The post gives extensive advice on using salesforce dashboards to improve visibility of the sales pipeline and sales performance.

It includes videos that demonstrate the 12 charts that we think are critical in any business. There are extensive links to related pages on our web site that give more information on each dashboard chart.

You can also download the accompanying eBook. It’s a high quality, comprehensive resource. So we charge for it. The price is an email address.

Here’s what we don’t then do. Immediately jump down their throat. Rather, we use an email nurture program to invite the prospect to look at our other content. Many people do. And some of those people subsequently engage with us on a commercial basis.

It’s an efficient and effective way to generate revenue, with the prospect being in charge of the purchasing process. Of course, to understand how this approach can apply in your own business you know what to do by now – visit our Contact Us page.

Use web to lead for content download

Here’s how it works.

Set up a web to lead form to capture the email address. Then, when the prospect completes the form, immediately send her an email that she can use to download the content.

That way, you validate that the email address is legitimate. It also means you capture all the details in salesforce. This includes linking the lead to a marketing campaign and setting the lead source.

You can implement this quick win today.

How to set up web to lead

There’s a wizard in salesforce to help system administrators set up web to lead. You’ll find it under Setup, Customize, Leads, Web-to-Lead.

Use this wizard to create the code for your web form. Then get the person that looks after your website to deploy the form on your web site.

Don’t get bogged down with it. If you need some help or advice just get in touch.

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Should Salespeople Generate Their Own Leads?

Should Salespeople Generate Their Own Leads?

“If they were proper salespeople they would generate their own leads.”

So says Paul Rolling.

Paul commented on the LinkedIn version of last week’s blog post, “Why Sales Complain About Marketing Leads”.

The post tells the story of how the Marketing team at Modernis attended a trade show. Marketing generated lots of leads. And passed them straight to Sales.

Guess the number of opportunities created?

None whatsoever.

What happened next?

Modernis engaged us for a customer research project 12 months later. The GSP team phoned 10 of the leads as part of the research assignment.

We found that five of the leads had since made a purchase or were in the process of doing so. In other words, 50% were great quality leads.

Yet Sales originally thought all the leads were rubbish.

I outlined the lessons that Modernis learned from this experience.

Then I published the blog on LinkedIn. And Paul made his comment.

Really, Paul?

I asked him to elaborate.

“What I mean is that if you need others to create your sales leads you are doing only half the job. If you start and finish the process yourself, you can properly qualify the prospect without wasting time with leads from someone who is simply playing a numbers game.”

You can see his point.

Proper qualification of Leads is critical to effective selling. No one wants salespeople to waste time on non-productive leads. And the salesperson knows best what represents a qualified lead.

Why salespeople should generate their own leads

Here are five ways I think salespeople should create their own leads.

  1. Referrals. Salespeople are in the ideal position to ask a customer or prospect if they can recommend anyone else.
  2. Existing customers. We all agree it is easier to sell to existing customers than new ones. Generating new leads from within the existing customer base is part of any salesperson’s role.
  3. Very specific cold contacts. Something has changed with a potential customer. Takeover, acquisition, competitor action, it doesn’t matter. In certain situations, a carefully crafted, highly targeted email or phone call from a salesperson with relevant company and industry knowledge and experience is the right approach.
  4. Networking / speaking. Many salespeople attend networking or speak at events. All legitimate ways for salespeople to generate their own leads.
  5. LinkedIn (or other social media). Keeping in touch, regularly interacting with groups, sending targeted communications, are all ways for salespeople to generate their own leads.

So Paul has a point.

There are situations when it is right for salespeople to generate their own leads.

Nevertheless, I have a but. And it’s a big but.

In most businesses, the leads salespeople generate themselves should supplement rather than replace the leads Marketing generate on behalf of salespeople.

Why salespeople shouldn’t generate their own leads

Let’s remind ourselves of the context here.

We’re talking about sales teams that operate in a B2B environment in which the sales cycle is several months or more.

1. Sales people are expensive

Salespeople are often the most expensive resources in a company. That’s even before you consider the fully loaded cost of Sales.

In many industries, salespeople need a significant degree of experience and expertise in the product area. They need to be sufficiently mature (irrespective of age) to interact effectively with experienced counter-parts on the purchasing side. That takes time and investment in people development.

This investment means salespeople have to be productive as possible.

The conflict with lead generation is that so much of it is time consuming and unproductive. Simply finding the right people to contact can take an age. Getting hold of them even longer.

This work can left reliably to lower cost employees. Having salespeople generate their own leads is an inefficient use of this expensive asset.

2. Salespeople aren’t very good at cold calling

This may come as a surprise to many people not directly involved in sales. After all, salespeople are supposed to have the ‘gift of the gab’, aren’t they?

No, not necessarily. In fact, in my experience, the most successful salespeople are the ones that listen the most and talk the least.

Calling and qualifying leads is a skill in its own right. And because they are not very good at it, for many skilled salespeople, cold calling prospects is like going on a diet or giving up smoking. Tomorrow is always a better day to start. Focus today on getting an existing deal moved along, rather than spend time being rejected on the phone.

3. Confused roles and metrics

Expect salespeople to generate their own leads and you risk confusion over priorities and focus.

Let’s say you have a salesperson that is consistently one of the top revenue performers. But she’s poor at generating leads. Is she doing well or badly? What management action do you take? If you are not careful, you risk damaging overall revenue by making her focus more time and energy on generating her own leads.

And what if she’s not very good at generating her own leads? There is a serious risk of de-motivation and resignation. Far better to have her out in the field, spending time with customers and prospects.

4. Consistent, robust approach to generating leads

Effective lead generation requires a systematic and organized approach. This means a day-in-day-out reliable process of gathering information, sending relevant communications, calling potential prospects, making appointments.

Lead generation is not an activity you can afford to leave until the pipeline is low. It is not something to do in a crisis. This is a business activity that requires a continuous, systematic approach. Use the extensive internet resources such as Siteoscope to generate more web leads.

Generating leads is too important to be left to times when a salesperson has a quiet moment (there’s never a quiet moment). It requires dedicated commitment from a properly trained, organized and managed person or team.

5. Technology is re-engineering lead generation

Once, cold calling and adverts was primarily the way to generate leads. Not anymore.

Prospects are devouring content. B2B buyers research extensively online before deciding on which suppliers to contact. They decide when, how and on what terms to interact with the selling organization.

Companies effective at generating leads are increasingly using technology, not people align with this buyer-led approach. Applications such as Pardot and Marketo allow vendors to nurture, prioritize and monitor leads. They perform these activities on a scale and sophistication that no human can achieve.

So let marketing automation technology do its thing. Only then, when the technology highlights a sales-ready lead, should the salesperson get involved.

In summary

Every sales team rightly expects salespeople to generate their own leads. These leads come from sources such as networking, carefully targeted email, referrals and extensions into the customer’s own organization.

In many businesses though, it is counter-productive to ask salespeople to focus heavily on generating their own leads. Far better to let technology and automated business processes do the work of lead nurturing and prioritization. It means getting lower cost employees with specialist skills to do the hard work of identifying and qualifying leads.

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How To Manage 4 Types Of Framework Agreement In Salesforce

How To Manage 4 Types Of Framework Agreement In Salesforce

Framework agreements exist in virtually every industry.

They are the backbone of many commercial relationships. If you want a long-term relationship with a customer, then get a framework agreement in place.

So naturally, you want to manage framework agreements in salesforce.

Yet companies often struggle to do this.

“We’ve made a dog’s breakfast of it”, as one prospect told me recently.

They weren’t wrong.

So, here’s what you need. The definitive guide to managing framework agreements in salesforce.

Types of Framework Agreement

To manage framework agreements in salesforce effectively, you first have to decide which type of framework you are dealing with. Here are four types of framework agreement you can manage in salesforce.

  1. Drawdown.
  2. Regular Order.
  3. Occasional Order.
  4. License to Hunt.

(If you have a different type of framework agreement, let us know. We’ll figure out how to manage it in salesforce).

1. Drawdown Framework Agreements

Customers ‘drawdown’ a quantity of products against an overall assumed volume.

Often, at the start of the agreement, there is an assumed order quantity each month. In practice, the actual order quantity can often vary from month to month.

Drawdown framework agreements are common in many industries.

For example, based in Greensboro, NC, Gilbarco Veeder Root finalizes a drawdown framework agreement with a petrol retailer for the purchase of a large quantity of petrol pumps.

The agreement defines the products and pricing, commercial arrangements and legal terms of the contract.

The petrol retailer does not want to receive all the pumps in one go. There may be a written minimum and maximum order quantity each month. However, progress on their gas station re-fit programme will determine the actual quantity ordered each month.

2. Regular Order Framework Agreements

Companies that sell large volumes of relatively small-ticket items or consumables often use transactional framework agreements.

The customer places regular orders when they need to re-stock. Often, the customer does this directly via an online portal.

For example, in the UK, Zimmer Biomet sell a variety of consumable products to dental practices.

Zimmer Biomet enters into a framework agreement with the dentist. This agreement specifies the price for each product, together with the support and other services provided by Zimmer Biomet.

The dental practices place orders every few weeks using the Zimmer Biomet ERP portal. This streamlines the end-to-end process of packing, shipping and invoicing each order.

3. Occasional Order Framework Agreements

With these framework agreements, customers place occasional, rather than regular orders.

These occasional orders are often significant in size. The framework agreement covers the commercial terms and over-arching legal terms. However, a separate specification and agreement defines the specific products and services within each order.

Based in Malta, Evolve provide products and services to fit and equip a wide variety of medical laboratories.

Fitting-out each new laboratory is a significant undertaking. A framework agreement is set up with a pharmaceutical company or government department. This agreement defines the pricing and other terms that apply to each contract within the framework agreement.

However, no two laboratories are alike. Each order requires consultancy and detailed collaboration with the customer to define the specific products and services that are required. A separate contract, under the umbrella of the framework agreement, defines the agreed work.

4. License To Hunt Framework Agreements

A license to hunt framework agreement gives one party the permission to seek-out deals elsewhere in the organization or group of companies.

It’s a common agreement in financial services and many other industries.

For example, based in the UK, Hornbuckle Mitchell provide financial services to brokers. They can secure a license to hunt framework agreement in two ways.

First, within a large multi-branch brokerage, the head office team will make framework agreements with selected providers in each market category. This gives Hornbuckle Mitchell permission to visit the branches and convince individual brokers to use their products.

Second, Hornbuckle Mitchell makes framework agreements with buying groups. These financial services buying groups make framework agreements on behalf of many small brokers. The agreements cover fees, training, regulatory services and more. The license to hunt gives Hornbuckle Mitchell permission to visit the members of the buying group to promote their financial products.

How To Manage Framework Agreements in Salesforce

Here’s how to manage each of the four types of framework agreement in salesforce.

1. Drawdown Framework Agreements In Salesforce

Products, combined with standard or custom schedules, are the key to managing drawdown framework agreements in salesforce.
Here’s how.

Create an Opportunity to represent the potential framework agreement. Add Products to the Opportunity to represent the physical goods and intangible services you anticipate the customer purchasing during the lifetime of the framework agreement. (Consider using the GSP Product Selection Wizard to make it easy to add Products to Quotes or Opportunities in salesforce).

Then, for each Product create a schedule that describes how the products and services will be drawdown.

Let’s use an example to illustrate this. Assume the customer anticipates purchasing 216 generators over a 12-month period. To make it easy, we assume each generator costs $1000.

The opportunity has a ‘gross’ value of $216,000 (216 x $1000). That’s the figure in the Amount field.

Add products to the opportunity to represent the goods and services the customer will buy in the framework agreement.

From gross sales perspective, the deal is worth $216,000. However, that’s only half the story.

Forecast Revenue On Drawdown Agreements

We can use revenue schedules to forecast the month-on-month order value.

Revenue schedules project the anticipated income over an extended period. Create a revenue schedule for each product on your opportunity.

This means we get an accurate view of the revenue contribution from each opportunity, over time.

Use revenue schedules to forecast sales on framework agreements.

Using our example, we might assume that on average, the customer will drawdown generators to the value of $18,000 per month.

Optionally, you can adjust the revenue schedule for this month based on the actual value of orders placed. At the same time, you can also update the forecast for future months, based on your latest information from the customer.

You can use a similar approach to forecast the quantity of products the customer will draw-down each month.

Don’t forget you can also use the GSP Schedule Shifter to keep the Opportunity Close Date aligned with your schedules.

Auto Adjust Product Schedules To Match Close Date Changes

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For much more on using the standard revenue schedules in salesforce read 5 Killer Examples Of Recurring Revenue Forecasts In Salesforce.

Custom Schedules for revenue forecasting

The standard revenue schedule functionality in salesforce works well for many of our customers.

But not all.

The problem is the standard feature is not very flexible. You can’t, for example, track the Status of each schedule – Not Ordered, Ordered, Invoiced, Paid.

To do this, you need custom schedules. These give considerable flexibility for revenue and quantity forecasting on framework agreements in salesforce. This has even included s-curve revenue forecasting for some clients.

2. Manage Regular Order Framework Agreements in Salesforce

‘Regular order’ framework agreements in salesforce also need an opportunity.

But this time, the opportunity serves a different purpose. It represents the process of getting a potential customer onto the books.

In other words, the opportunity has a notional value. No orders are placed and no money changes hands on the day the deal is done.

Rather, there is an expectation that the customer will begin placing a flow of regular orders.

The customer will require regular account management. However, there’s no sales process required for each order.

So, here’s what you don’t want to do. Create an opportunity for each new order. Rather, use a custom object to track all the orders that get placed.

At Zimmer Biomet, customers place orders using a portal that gives access to the ERP system. Integration with the ERP system inserts these orders – and associated invoices – into custom objects in salesforce.

It wasn’t always this way, though. Initially, Zimmer Biomet extracted the orders into a spreadsheet each week. The orders were imported into salesforce using the Data Loader. It just goes to show, one person’s integration is another’s import wizard!

For more information on this topic, Import Orders Into Salesforce to Optimize Account Revenue.

Either way, account managers have great visibility of the trend in orders for each customer.

Orders and Invoices imported into salesforce gives account managers great visibility of the trends for each customer.

Zimmer Biomet uses this information to segment customers, drive business development activity and implement marketing campaigns. They also measure account management performance, not on opportunities, but on the quantity and value of orders placed by the customer.

Here’s one more thing they do.

All information about the rationale for any discount is stored in the Chatter feed, directly on the Opportunity. This means it is easily available in the future – certainly compared to hunting for a long lost email.

The reason is this. A large volume of promised future orders may justify a discount. The customer may fall short of this volume. At the very least, you need to know this when it comes to re-negotiating the framework agreement. Storing all the rationale for the original discount in the Chatter feed keeps this information visible and easy to find at the appropriate time.

More tips on controlling price discounts using salesforce.

3. Manage Occasional Order Framework Agreements in Salesforce

Manage the sales process of getting a customer to the point of signature on an occasional order framework agreement by using an opportunity in salesforce.

With this type of framework agreement, there is sometimes an initial order or project to fulfil. However, the key thing is both parties take the opportunity to put a framework agreement in place that will cover future deals.

So far, it’s not dissimilar to the way regular order framework agreements are managed in salesforce.

However, unlike regular order agreements, there’s no expectation of a weekly or monthly flow of relatively small orders. Rather, you need to work proactively with the customer to identify new projects and opportunities.

Unlike regular order framework agreements, manage these future orders through separate opportunities in salesforce. That’s because each one needs its own dedicated sales process.

Here’s another thing.

Often, the framework agreement will define a specific set of product prices that will apply to future opportunities. This means you create a special Price Book, just for that customer.

Use the GSP Auto Price Book Selector to ensure this dedicated Price Book is applied to the customer (and not to any others).

Automatically Assign Price Books To Opportunities

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The Auto Price Book Selector is an effective – and free – way to make sure salespeople consistently apply the right Price Book to the right Price Books

4. Manage License To Hunt Framework Agreements in Salesforce

Manage these framework agreements in salesforce in a similar way to the ‘occasional order’ agreements.

Use an opportunity to manage the sales process of getting the overall framework agreement secured. This opportunity can have a notional value, based on the 12 month or long term anticipated value of related deals.

Be sure, though, to exclude these type of opportunities from your pipeline of ‘paying’ opportunities.

Once the framework agreement is in place, create a separate opportunity in salesforce for the Accounts you are working.

Potentially, use Products and Schedules on these opportunities to define and track revenue over time in salesforce.

So there you have it. 4 types of framework agreement to manage in salesforce. Don’t make a dog’s breakfast of it. Decide first which type of framework agreement you’re working with. Then follow the advice above – or – for a free 30 minute free consultation on managing framework agreeents in salesforce, follow the link below.

Free 30 minute consultation on framework agreements

Get in touch today

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