It is often surprising how little effort goes into measuring closed won revenue.
I guess that after all, what’s happened has happened.
In most businesses, much more focus, energy and effort is directed towards building the sales pipeline.
But wait a moment.
We can learn from the past. And we can get insights that will help turn pipeline deals into future closed won opportunities.
It’s just a question of looking for those insights in the right places.
So here are 10 dashboard charts that will help you gather information from the past that you can apply today to increase closed won revenue.
1. Closed Won by Month and Territory / Salesperson
This is the starting point for analyzing closed won opportunities and revenue. It’s Chart #1 on our list of 12 Charts That Should Be On Your Salesforce Dashboard.
In this example we are showing closed won opportunities for the current financial year. The chart and underlying report give immediate feedback on sales achieved for each territory.
Businesses with smaller sales teams will want to display the information by individual salesperson on the dashboard. Those with larger sales teams should have a dashboard for each territory that summarizes the information at an individual level.
With either chart, we have immediate information on the most important sales metric of all in terms of Closed Won opportunities. The level of total sales by person or team.
Based on our understanding of the environment in which team and salesperson operate, we can use the chart to identify potential areas for improvement.
All other things being equal, our chart tells us that we need to identify ways to increase revenue in the West Territory.
In the individual salesperson chart, Dave Apthorp is the top performer. Can Dave’s experience and know-how be shared across the team, particularly to help Shaun increase his sales performance? Are there other coaching, training and support activities that will boost Shaun’s figures?
Before starting that process however, there are other dashboard charts and sales metrics we can use to analyse closed won opportunities. These will help us be more specific and targeted in delivering activities that will increase revenue.
2. Closed Won by Customer Type
Generally it’s quicker and cheaper to sell to existing customers. Yet every business needs to sell to a combination of both existing and new customers in order to grow.
The Closed Won by Customer Type dashboard chart tells us whether we have the right mix for closed won deals in our company.
The chart shows that we have a weighting towards existing customers for closed won deals. Is this healthy?
Only the business strategy relating to our particular business can tell us that. However, having this information about closed won deals means that we can make judgments that will inform the future sales and marketing approach.
At a more specific level, we can re-format the chart to examine closed won deals by territory or salesperson. This might give us further insight on the best way to increase revenue in the West territory or to help Shaun increase his revenue.
3. Closed Won by Account
In many businesses there is one customer that contributes a disproportionate amount of revenue. In other companies, sales income is more evenly spread.
In either case, knowing your largest 10 customers by closed won deals is essential to implementing your key account management strategy in salesforce.
This dashboard table provides that information.
The same table can be used to show the top 10 customers for each Territory or salesperson. This is a great input in defining local key account strategy.
In our example the University of Arizona contributes nearly twice as much revenue as the next customer. Probably everyone knows that is the number one customer already.
But it is likely that there would be less consensus on the other top customers. The closed won by Account dashboard table gives us hard facts that will influence account management and business development.
4. Closed Won by Product
This dashboard chart shows how our closed won revenue is split by product family or product category.
(If you are not using Products in salesforce then there is a very good chance that your pipeline visibility and closed won reporting would be much improved by doing so. Bring Your Opportunities To Life With Products).
The chart shows that Generators dominate closed won revenue in our business.
Can revenue be increased for other product categories? It’s likely we want to drill down to the underlying report and see the closed won product information by salesperson, territory and customer. Then we can initiate specific, targeted management interventions to boost revenue for other products.
We might also want to get further insight by looking at the average deal size information shown in the dashboard chart below.
5. Average deal size for closed won opportunities
Analyzing closed won sales by average deal size gives insight that can be used to identify development needs.
This is especially the case if we add additional information to the dashboard chart that digs below the initial surface.
In this example, Dave Apthorp consistently has the highest average deal size for closed won revenue.
The value of opportunities based on Dave’s ‘Core’ products is only marginally higher than his colleagues. Where Dave Apthorp really scores is by adding Optional products. Dave is significantly boosting his revenue and average deal size through the inclusion of optional products.
For full advice on the average deal size metric and how to apply it to increase revenue, read Why You Need To Measure Average Deal Size.
12 Must Have Charts For Your Salesforce Dashboard
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6. Conversion / Win Rates
Opportunity conversion rates (or win rates) compare the ratio of closed won to closed lost deals for a given time period.
The chart below shows the company conversion rate for both the number and value of closed won opportunities.
In our example, in the first two months, the win rate by Amount was higher than the win rate by Count. This means we successfully closed a higher proportion of larger opportunities.
In September the position was reversed. A greater proportion of lower values deals were set to closed won.
Is the switch in September due to a short-term change in pricing strategy? Did we experiment with changes in remuneration and commission structures? Can the trend be attributed to marketplace dynamics?
Of course, drilling down to customer type, territory and salesperson level will give us further insight.
But the key thing is that now we are aware of this trend through the dashboard chart. This means we can investigate further and take action if necessary to influence the future sales approach and strategy.
For complete guidance on using Conversion / Win Rates in salesforce review How To Use Opportunity Conversion Rates For Superior Results.
7. Closed Won by Campaign
The primary purpose of most marketing campaigns is often to produce sales-ready opportunities. Those opportunities then need to be converted successfully into closed won revenue.
The Closed Won by Campaign chart tells us how well each marketing campaign performed in generating sales revenue.
The Spring Trade Show and User Conferences were the two marketing campaigns that yielded the most closed won revenue.
As such the chart is a key way of gathering the information that will influence future marketing and business development strategy. It gives great insight into the campaigns we should continue, expand or stop.
Remember that the lead management and conversion process is critical here. If Leads are being converted without creating an Opportunity, then potentially the data for this valuable metric is lost.
Review this blog post for advice on lead management and conversion steps including downloadable process diagrams.
8. Key Sales Metrics for Closed Won Deals
These metrics are powerful ways of assessing the quality of the sales pipeline. In particular they help salespeople and managers identify deals that have a high risk of slipping from one month to the next.
Here are two of the key metrics:
- Number of Close Date month extensions.
- Age of the opportunity.
For example, if an opportunity has already slipped from one month to another an excessive number of times, we might question whether it’s correct the deal has a close date for the current month.
Likewise, if we perceive that the average sales cycle is 90 days, should we question a pipeline deal that has been open 120 days? What if the close date has slipped twice already?
But how do we judge if the number of month-on-month slippages or days open are warning signals?
The answer is to look at the key sales metrics for closed won deals.
The chart gives insight that we can use to manage the sales pipeline effectively going forward.
For example, it shows that the average sales life-cycle for closed won deals is around 90 days (the left axis). The average number of times a closed won deal moved from one month to the next is around 1.5.
Some good news. The number of times the close date slipped from one month to the next for closed won deals is on a downward trend.
It’s a metric we are likely to want to track. All other things being equal, it implies the sales team are becoming more effective at forecasting and predicting when deals will close successfully.
9. Closed Won dashboard gauge
There’s no Target tab in salesforce.
But here’s the easiest way to compare sales versus target in salesforce. It’s a dashboard gauge.
The gauge shows the value of deals that have been closed won for a given period of time – this financial year in our example. It gives a clear indication of our performance against target.
Similar gauges can be maintained for individual territories and salespeople.
The upside of this way of comparing closed won revenue against target using the gauge is that it’s quick and simple to set up.
The downside is that it requires manual effort to maintain the red, amber and green settings. It also gives no information on the contribution of the pipeline to current or future sales targets.
Here is more information on the 3 Ways To Measure Sales Versus Target In Salesforce.
10. Stage Movement for Closed Won deals
This dashboard chart gives valuable insight into how our deals arrive at the Closed Won opportunity Stage.
The chart shows that 5 opportunities moved directly from Prospecting to Closed Won. 11 deals moved from Negotiation to Closed Won. 3 even went from Closed Lost to Closed Won!
The first value, the one with no ‘From’ Stage, means that 3 deals were introduced into salesforce and went directly to the Closed Won Stage.
What can we infer from these numbers?
A disproportionate number of deals jumping from early Stages to Closed Won may mean that salespeople are not maintaining the accuracy of their pipeline opportunities.
It may also mean that deals are being deliberately held back until the salesperson is confident of a successful outcome. Sandbagging, in other words. This means sales managers are missing out on pipeline visibility.
Either way, the dashboard chart is giving us useful insight into the transition of opportunities into Closed Won revenue. Further analysis, at the territory or salesperson level may identify specific trends that will help to boost sales revenue and pipeline visibility in the future.
The past is the past. But students of history know there’s much that can be learned from the past. Start studying your closed won deals today to increase sales tomorrow!
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