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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.

Related Blog Posts

Why You Need To Compare Average Closed Won Opportunity Size
How to use opportunity conversion reports for superior results
How To Stop ‘Closed Lost’ Screwing Up Salesforce Dashboards
5 Easy Tips That Will Make Opportunity Probability Your Trusted Friend

Is Your Sales Funnel Big Enough To Make Quota?

Is Your Sales Funnel Big Enough To Make Quota?

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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Related Blog Posts

Why You Need To Compare Average Closed Won Opportunity Size

How to use opportunity conversion reports for superior results

How To Stop ‘Closed Lost’ Screwing Up Salesforce Dashboards

5 Easy Tips That Will Make Opportunity Probability Your Trusted Friend

12 Must-Have Salesforce Dashboard Charts | With Video And Examples

12 Must-Have Salesforce Dashboard Charts | With Video And Examples

Salesforce dashboards to increase visibility of the sales pipeline and improve forecasting accuracy.

There’s no doubt about it.

That’s the number one reason businesses invest in salesforce licenses.

Yet many sales managers are frustrated.

They still do not have the salesforce dashboard charts that give visibility into the size, quality and trend in the sales pipeline needed to forecast accurately. They also can’t look back at historic results to gain the insight that will drive improvement in future sales performance.

But that problem can be fixed.

Here are examples of the 12 must-have salesforce dashboard charts that every sales manager needs.

These salesforce dashboard charts, and the underlying reports, give tremendous visibility into the sales pipeline and sales performance. For each dashboard chart, we also point you to a dedicated blog post and other resources for even more in-depth information.

In the interests of brevity we’ve ignored variations of these charts. These variations can provide additional insight for your business by analyzing sales performance by product, campaign, territory, customer type and so on. Use the charts examples recommended in this blog post as the core building blocks to create your organization-specific salesforce dashboard and reports.

12 Must Have Charts For Your Salesforce Dashboard

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1) Closed Won Opportunities by Month


We all want to know how much sales revenue has been won. That’s what the Closed Won Opportunities by Month dashboard chart tells us.

The chart shows how much sales revenue the company has achieved during the financial year.

Closed Won Opportunities chart on the salesforce dashboard measures revenue achieved this financial year.

In this example, the dashboard chart and underlying report summarize the information by individual sales person. If you have a larger sales organization, then group the chart by team, country or territory.

The dashboard chart and report give top-level insight into sales performance. In our example, Dave Apthorp is consistently the top performer. Sarah has improved her performance significantly after a poor start to the year. Peter, in particular, can benefit from coaching and training to improve his performance.

Combine this information with your personal knowledge of each team or individual to get an immediate overview of sales performance across the company. Use the other dashboard charts that analyze historic performance (for example conversion rates, average deal size) to determine the specific support and actions each person needs to take in order to increase their sales results.

Incidentally, the trick here – as with many salesforce dashboard charts – is to create the graph as a stacked bar chart and the underlying report as a Matrix report. Yes, it’s slightly easier to create a Summary report. However it’s only a small step further to create a Matrix report. And the results are so much more powerful.

Of course, the Closed Won Opportunities by Month dashboard chart doesn’t tell us anything about future revenue performance. That’s where the other pipeline charts we recommend come into play.

Link to video demonstrating how to use the Closed Won Opportunities salesforce dashboard chart.

 

More blog posts related to the Closed Won salesforce dashboard chart:

10 Illuminating Ways To Measure Closed Won Deals. Examples of other ways to analyze historic sales performance.

When Is A Report Not A Report. Demonstrates why Matrix Reports are nearly always better than Summary Reports.

2) Pipeline Deals by Close Date and Opportunity Stage


If you only use one dashboard chart to manage the sales pipeline then make sure it’s this one.

Opportunity pipeline report and chart on the salesforce dashboard shows deals due to close over the coming months.

The chart shows the value of Opportunities that are due to close each month. Within each month, we can see the deals in terms of the Opportunity Stage. Stacking the chart by Stage gives visibility of the overall health of the funnel.

The Pipeline Opportunities By Close Date and Opportunity Stage dashboard chart delivers the fundamental information needed to manage the sales funnel. Sales managers and executives can use this chart to assess the size of the pipeline and to begin forecasting future revenue.

This dashboard chart also tells us whether the pipeline is sufficiently mature this month and next month to achieve revenue targets. This means managers and salespeople have an early warning that tells them when remedial action is necessary

For example, let’s assume we are in January.

There’s a substantial amount of pipeline due to close this month that is still in Prospecting and Investigation. If, for example, our typical sales cycle is 3 months, are we confident these deals will close in January? Are they at the right Opportunity Stage? Should these opportunities be scheduled to close in a later month?

What about the deals in April that are in the Negotiation Stage? Is it really going to take 4 months to close these opportunities? Maybe. Or are there steps we can take to bring these deals forward?

A key variant of this dashboard chart is the Pipeline Opportunities by Close Date and Owner.

Examine the pipeline by opportunity owner using this salesforce dashboard chart.

Use the summary by Owner to identify which teams or salespeople have the most pipeline due to close both this month and in the longer term.

Link to video demonstrating how to use the Opportunities by Close Date and Month salesforce dashboard chart.

 

More blog posts related to the Pipeline by Month and Stage salesforce dashboard chart:

If You Only Create One Dashboard Chart Make It This One. This blog posts gives more examples of how to use this dashboard chart and includes a video by Gary demonstrating the chart in action.

Don’t Let The Best Sales Dashboard Chart Look Like A Bedraggled Washing Line. Explains what to do if too many opportunities with Close Dates in the past make your beautiful chart look like a washing line!

3) Sales Funnel Chart


The sales funnel chart should be on your dashboard because it’s a good graph to look at – once a week.

The sales funnel salesforce dashboard chart reveals whether the pipeline shape is in proportion.
Here’s the thing about this chart. The shape never changes.

It doesn’t matter how big or how small your pipeline is. The outline funnel shape will always be the same size and shape on your dashboard.

So why bother with it?

Well, the answer is because of the value of the information the segments within the funnel give you.

If the sales funnel was in perfect shape, the value of the pipeline in each segment would get progressively smaller.

But that’s not always the case. In fact, if you look at our example, the value of deals in Investigation is less than the value in Customer Evaluating. In other words, the later Stage has more pipeline than the preceding Opportunity Stage.

Look also at the Prospecting Stage. A significant number of deals may be qualified out at this initial stage. So, should the Prospecting Stage be larger?

In other words, the chart is warning that your pipeline may be out of shape. Potentially we need to initiate marketing campaigns to boost the size of the early-stage funnel. We may also need to examine our qualification and investigation processes in order to move deals more effectively through the sales cycle.

Is the shape of the sales funnel chart in your business a cause for concern? Only you know the answer to that question within the context of your sales team.

But that’s why it’s a good chart to look at once a week.

Link to video demonstrating how to use the sales funnel salesforce dashboard chart.

 

More blog posts related to the sales funnel dashboard chart:

Big is Beautiful: 4 Easy Charts To Measure Pipeline Size. Demonstrates the sales funnel and other dashboard charts that measure pipeline size.

12 Must Have Charts For Your Salesforce Dashboard

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4) Top 10 Pipeline Accounts


In most companies, the sales team will be able to nominate immediately the top one or two prospects.

But what about the top 5? Or the top 10?

The Top Pipeline Accounts table shows customers and prospects ranked by total pipeline. This helps managers and salespeople in prioritize their time. It means salesperson effort, time and other resources is focused on areas where it is likely to have the greatest impact.

Prioritize salesperson time and effort using the Accounts with most pipeline salesforce dashboard chart.Displaying the information on a dashboard table is a good way of focusing attention on the top Accounts. Limit the dashboard table results to the top 5, 10 or 15. Then on the underlying report, list all Accounts with Open Opportunities.

In our example, we can see that High Hill Estates has the greatest amount of pipeline. In fact, it has twice as much sales pipeline as the next nearest Account.

Are we proactively managing the relationship with this Account? Is a robust key account management plan in place? Do we understanding their buying process? Have relationships been established at multiple levels? Has a clear close plan been established and validated with the customer for each opportunity?

The underlying report shows the constituent Opportunities for each Account. Can a large, single deal be done if the report reveals the total figure for High Hill Estates comprises multiple, separate opportunities? Indeed, if the CEO has time to visit only one Account, let’s make it this one.

In short, the Top 10 Pipeline Accounts dashboard table and report provide the essential information that helps executives prioritize the companies’ sales, account management and business development activities.

And don’t forget, like any other dashboard chart, replicate the table at territory, team and individual salesperson level to prioritize activity at all levels in your sales organization.

Link to video demonstrating how to use the Top 10 Accounts salesforce dashboard chart.

 

More blog posts related to the Top 10 Accounts salesforce dashboard chart:

How To Build Key Account Plans In Salesforce. Demonstrates examples of key account planning within salesforce.

Stop Guessing, Start Measuring Key Accounts. Reports and salesforce dashboard charts that measure key account performance.

5) Long-Term Pipeline Trend


Dashboard chart numbers 2 to 4 describe the sales pipeline as it stands right now.

But what about the trend in the size of the sales funnel over time? Is the pipeline increasing or decreasing in size?

The Sales Pipeline As-At chart gives us the answer. It measures the size of the pipeline ‘As-At’ the 1st of each month. As such, it shows the long-term trend in the size of the sales pipeline.

The Long Term Pipeline trend dashboard chart shows the size of the sales pipeline on the first day of each month.Grouping the information by Historical Stage gives additional insight on the make-up of the sales pipeline. It allows us to understand the overall trend by Opportunity Stage.

In our example, the pipeline has been growing over recent months. This is largely due to a significant increase in deals in the Prospecting Stage. That’s good news. Do we understand why it has happened?

We may also want to investigate why the size of the pipeline in the Customer Evaluating and Negotiation Stages has declined. Are the sales team having trouble moving deals through the sales process? Was the pipeline created over the last few months of the right quality?

The As-At Pipeline chart has a little sister. It’s called Opportunities with Historical Trending. This chart measures the short-term trend in the pipeline. For example, the trend in the size of the pipeline over the last 4 weeks.

Use the dashboard charts in tandem to understand the trend in the size of the pipeline. The As-At report gives the big picture – it tells whether efforts to grow the pipeline in the long-run are effective. The Historical Trending chart demonstrates whether short-term initiatives to boost funnel size are successful.

Link to video demonstrating how to use the Pipeline Trend salesforce dashboard chart.

 

More blog posts related to the Pipeline Trend salesforce dashboard charts:

Measure The Trend In Your Sales Pipeline. Demonstrates the Long-Term Pipeline Trend and Short-Term Pipeline Trend salesforce dashboard charts in action.

6) Open Opportunities by Created Date


Size isn’t everything. Quality matters too.

Here’s a simple but effective way to assess pipeline quality. It’s the Open Opportunities by Created Date dashboard chart.The Pipeline by Created Date dashboard chart is an excellent way of examining the age and quality of the sales pipeline.The chart shows the existing funnel, summarized by Created Month and current Stage. You may also want to create a similar report and dashboard chart that summarizes the information by Created Month and Opportunity Owner.

Let’s say it typically takes three months to close a deal in your business. If there are significant number of opportunities open much longer than this, then are these genuine, viable deals?

As such, the chart and underlying report give executives the information they need to start the process of validating the sales pipeline.

In our example, let’s assume we are in January 2017 and that our sales cycle is typically 3 months. What about the opportunities opened in February, March and April 2016? Are we confident they are legitimate opportunities? Did the Close Dates shift regularly simply to maintain the size of the pipeline? What action should we take to bring these deals to fruition?

Reviewing the pipeline by Created Date is a simple, but effective way of identifying potentially dormant deals in your pipeline. But it also gives valuable information on how much pipeline is being created month-on-month.

Look again at our example chart. Progressively less pipeline was created over the last 3 months of the year. Should we be concerned about this? Perhaps it’s due to a strong focus by the sales team on closing existing deals before the end of the year. On the other hand, is it an early warning that we may have insufficient pipeline to meet our sales targets in Q1 2017?

Either way, we may need to implement marketing and business development initiatives to correct the trend.

Link to video demonstrating how to use the Open Opportunities by Created Date salesforce dashboard chart.

 

More blog posts related to the Opportunities by Created Date salesforce dashboard chart:

How To Tell If Your Sales Funnel Is Emitting Warning Signals. salesforce dashboard charts that indicate the pipeline may contain ageing deals of low quality.

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7) Pipeline Quality Metrics Table


If you want to predict tomorrow’s weather here is the most statistically reliable way to do it. Whatever the weather is like today, forecast that is how it will be tomorrow.

Sales deals are similar.

Deals that are stuck today will probably be stuck tomorrow. Opportunities that slipped last month are more likely to slip this month.

Here are three pipeline quality metrics that act as a barometer for managers and salespeople.

Three metrics on the salesforce dashboard highlight deals that are likely to slip from one month to another and result in the sales forecast being missed.

1. Number of Close Date Month extensions. This counts the number of times the Opportunity Close Date has shifted from one month to another.

2. Number of Days Since The Last Stage Change. This is the number of days since the Opportunity Stage was last updated.

3. Number of Days Open. This is the number of days the Opportunity has been open. The clock stops counting when the deal is Won or Lost.

Display the information in a dashboard table. In our example, we are showing the metrics for the top 10 deals due to close this month, ranked by the number of days they have been open.

This is high impact stuff. The table is a powerful way to draw the eye to deals due to close this month that need to be scrutinized.

Are we relying on these deals to hit our sales quota this month? How confident can we be that each opportunity will not slip to another month? Will the sales cycle complete satisfactorily on those deals not updated for a significant period? That may be unlikely.

Use the table to improve the accuracy of sales forecasts. The three pipeline quality metrics do not give the answer in themselves. But they do give a heavy hint on which deals should be reviewed and need an urgent action plan.

Link to video demonstrating how to use the Pipeline Quality Metrics salesforce dashboard chart.

 

More blog posts related to the Pipeline Quality Metrics dashboard table:

3 Killer Pipeline Metrics That Highlight When To Be Sceptical. Explains how to use the three metrics to identify deals that might slip from your sales forecast for this month.

8) Opportunity Conversion Ratios / Win Rates


A small increase in Opportunity conversion rates has a disproportionately high impact on overall sales revenue.

That’s why measuring opportunity conversion ratios / win rates is critical.

The opportunity conversion rate salesforce dashboard chart shows the win rate by salesperson for each month of the year.

The Opportunity Conversion Ratio / Win Rate chart shows the percentage win rate over time. It does this in two ways:

  • Win Rate by Amount.
  • Win Rate by Count.

Measuring the win rate in both ways means we can understand whether salespeople are more effective at closing higher value or lower value deals.

In our example, the win rate by Amount is higher in most months. This means we successfully closed a greater proportion of large value deals compared to smaller opportunities.

In September and October, the situation reversed. The team successfully closed a greater proportion of lower value deals.

Did the sales team lose focus on the higher value deals? Did we discount more heavily during these months? Or did we have new joiners that had less experience with larger deals?

The underlying report gives detail about win rates at the individual salesperson level. This is crucial information for identifying coaching, training and support needs.

Nevertheless, be careful. An over-emphasis on win rates can have unwanted consequences. Do not risk encouraging sales people to leave opportunities out of the pipeline until a deal is on the table (i.e. sandbagging).

Conversely, don’t discourage salespeople from setting deals to Closed Lost when opportunities no longer have legs. You need an accurate pipeline, not one full of dormant deals that salespeople are afraid to close-out.

Link to video demonstrating how to use the Opportunity Conversion Rate salesforce dashboard chart.

 

More blog posts related to the Conversion Rate salesforce dashboard chart:

How To Use Opportunity Conversion Rates For Superior Results. More in-depth examples of how to use conversion rates and opportunity win rates for effective sales performance management.

How To Measure Opportunity Win Rates Across Teams. Examples of dashboard charts that compare team and pan-company conversion rates.

9) Average size of Closed Won Deals


Recent research with one of our customers shows a 65% variation in average deal size between salespeople in one team.

That is a huge range.

All salespeople are working comparable territories. And selling the same products to similar customers.

Increasing the average deal size for salespeople at the lower end of the scale was a business development priority for this company. Addressing this issue resulted in increased sales revenue without any increase in the number of deals in the pipeline.

This salesforce dashboard chart shows the average size of closed won opportunities for each salesperson.

Many things explain variations in average deal size. These include differences in experience between salespeople, variations in the average number of products sold per opportunity and different levels of discounting by sales teams.

These are challenges that our customer addressed through training, coaching, personal development and adjustments to sales process and pricing strategy.

Nevertheless, unless you quantify this essential metric you will lack the information needed at salesperson level to identify the right course of action to boost revenue.

Link to video demonstrating how to use the Average Deal Size salesforce dashboard chart.

 

More blog posts related to the Average Deal Size salesforce dashboard chart:

Why You Need To Compare Average Closed Won Opportunity Size. Additional information on using average deal size metrics to identify potential improvements in sales performance. Includes examples of how Opportunity Products can be analyzed to understand which salespeople need to add more optional or non-core products to their deals.

12 Must Have Charts For Your Salesforce Dashboard

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10) Completed Activities per Salesperson


Sales deals do not close themselves. Pipelines do not grow automatically.

Tracking the number of completed sales Activities can provide valuable insight to explain varying levels of sales performance. Review Activity reports in conjunction with the other dashboard charts outlined in this eBook to analyse trends and variations in sales performance.

Sales deals don't close themselves so use the Completed Activities dashboard chart to track salesperson effort in winning opportunities.

In our example, there is an upward trend in the number of Activities completed by the sales team. That’s a positive sign. Indeed, the increase in Activity volume by Sarah may be a strong contributory factor in the improvement in her sales performance over the year that we saw on other charts.

However, we can also see that there are variations in the number of Activities completed by each salesperson. Shaun and Peter have recorded significantly lower levels of Activity compared to Sarah and Dave.

Consider tracking Activity levels by salespeople in several different ways. For example, compare activity with new customers versus existing customers. This will show whether the activities undertaken by salespeople are consistent with the overall sales strategy.

Improve the effectiveness of this dashboard chart by making two small configuration changes in salesforce.

First, modify the Activity Type picklist to values that suit your business. Make the field mandatory, This will provide additional insight on the type of activities that salespeople are completing.

Second, make the Due Date mandatory. This means activities will always be associated with a date. This is essential for producing dashboard charts that accurately count the number of activities completed each month.

Link to video demonstrating how to use the Activities salesforce dashboard chart.

 

More blog posts related to the Activities salesforce dashboard chart:

How To Spot Key Accounts You Should Be Focusing On. Explains how to use Activity Reports and dashboard charts to identify key accounts that need a renewed focus.

11) Leaking Funnel Report


Every sales funnel leaks. That’s the nature of the game. It’s why the traditional sales pipeline chart is shaped like a funnel.

But there’s two things that sales managers need to know about funnel leakage. Is the funnel leaking excessively? And is it leaking in the right place? The Leaking Funnel report tells you both of these things.Use the leaking funnel salesforce dashboard chart to analyze deals that have been lost from the sales pipeline.This dashboard chart measures the number of times Opportunities have moved to Closed Lost from each preceding Opportunity Stage. In our chart, it does this for deals that have been set to Closed Lost in the last 120 days.

For example, the dashboard chart shows that 8 Opportunities have moved from Prospecting, directly to Closed Lost.

All other things being equal, it is good that the first Opportunity Stage has the largest number of Opportunities that move to Closed Lost.

This implies we are qualifying-out deals we are unlikely to win. It means salespeople are not wasting time, effort and resources chasing deals when there is no clear competitive advantage.

However, look at the Negotiation Stage. Five Opportunities went directly from Negotiation to Closed Lost.

Again – all other things being equal – that movement in Opportunity Stage is bad news. It means we invested a considerable amount of time and effort moving the deal through the sales cycle, only to lose the opportunity at the last moment.

Of course, we need further investigation on the movement from Negotiation to Closed Lost before deciding on the right course of action. Is the trend attributable to one particular salesperson? How does the data compare for existing versus new customers? Does it apply only to opportunities with certain product groups?

Link to video demonstrating how to use the Leaking Funnel salesforce dashboard chart.

 

More blog posts related to the Leaking Funnel salesforce dashboard chart:

3 Steps To Plug A Leaking Sales Funnel In The Right Place. How to measure where and when the sales funnel is leaking in order to take the right action.

12) Sales Performance versus Target


Measuring sales performance against target is a fundamental aspect of managing a sales team.

However, there is no Target tab in salesforce.

So how do you measure sales versus target or quota? Well, there are three ways to do this in salesforce.

  • Use a gauge on a dashboard.
  • Use the Forecasts tab.
  • Use the GSP target tracker solution.

It’s the first of those options we illustrate here.There are three ways to track sales performance against target in salesforce; the dashboard gauge is the quickest and easiest to implement.The dashboard gauge runs from a report that measures Closed Won opportunities. Manually calibrate the red, amber and green settings within the dashboard chart settings.

The dashboard gauge option is quick and easy to implement. The downside, compared to the other two options, is that it provides no insight on whether there is sufficient pipeline to meet the sales target next month or this quarter.

Separate gauges need to be used to track performance versus target for each individual salesperson and sales team.

The Forecasts Tab provides advanced functionality for target tracking, including the ability of managers to override their subordinates targets. It is, however, relatively complex to operate and salespeople and managers need significant training to use it effectively.

The GSP Target Tracker App provides easy-to-understand charts and additional metrics to measure sales versus target. It also automates the forecasting process and avoids the need for sales people to create or update manual sales forecasts. The App also allows sales managers and salespeople to determine whether there is sufficient pipeline to meet target for this month and future months.

Link to video demonstrating how to use the Target gauge salesforce dashboard chart.

 

More blog posts related to the Target Gauge salesforce dashboard chart:

3 Ways To Measure Sales Versus Target in Salesforce. Explains the options for measuring sales performance against target in salesforce – dashboard gauge, Forecasts tab and the Target Tracker.

Is Your Sales Funnel Big Enough To Make Your Revenue Target. Using a custom solution such as the Target Tracker to measure expected revenue against target.

Track Sales Performance And Pipeline Versus Target

Find out more and watch the video

Recorded Webinar | 12 Must-Have Salesforce Dashboard Charts

Join Gary Smith, CEO of The Gary Smith Partnership and Senior Consultant Dan Bailey. Gary and Dan demonstrate the 12 charts in action and the contribution each makes to performance improvement and pipeline management.

Related Blog Posts

If You Only Use One Sales Pipeline Chart In 2017, Make It This One!

Don’t Let Your Best Dashboard Chart Look Like A Bedraggled Washing Line

3 Ways To Measure Performance Against Sales Target In Salesforce In 2017

Why You Need To Compare Average Closed Won Opportunity Size

If You Only Use One Sales Pipeline Chart, Make It This One!

If You Only Use One Sales Pipeline Chart, Make It This One!

Nothing is more useful to a sales manager than a sales pipeline chart that gives a comprehensive view of the funnel.

That’s exactly what the Pipeline by Month and Opportunity Stage sales pipeline chart gives you.

It’s my absolute favorite in our 12 Must-Have Salesforce Dashboard Charts. In fact, if I could only have one sales pipeline chart then it would be this one.

Tip: You don’t have to build this dashboard chart yourself. If you haven’t done so already, download our free GSP Sales Dashboard from the AppExchange. That way you can easily install all 12 recommended sales pipeline charts in your own salesforce environment.

So here it is. It’s the sales pipeline chart shows the Pipeline by Close Date and Opportunity Stage.

This sales pipeline chart gives robust visibility of the funnel on a salesforce dashboard.

The chart shows the value of opportunities due to close each month. Within each month, we can see where those deals are in terms of the Opportunity Stage and the sales process.

Let’s assume we are in the middle of October right now.

We can see that in this month, there is £600k worth of Opportunities due to close. This value is split by the various Opportunity Stages. In salesforce, hover over each Stage for additional detail.

This is powerful information from a sales management point of view.

It gives sales executives the essential information they need to manage the sales pipeline effectively. The underlying report facilitates accurate forecasting. Dud deals can be identified. And the sales pipeline chart helps to prevent that all too common problem, an over-inflated sales pipeline.

Tip: When the Pipeline by Stage chart is first created in many businesses, it doesn’t bring the immediate clarity you expect. That’s because the pipeline is full of opportunities with Close Dates in the past. In fact, the chart looks more like a bedraggled washing line. However, that problem of Close Dates in the past can be easily fixed.

Current month pipeline strength

Let’s stick with our assumption that we’re in the middle of October right now. And, in this case, let’s assume our typical sales cycle is 3 months.

As a sales manager looking at my October projected revenue, I want to know just how robust the October pipeline really is.

The sales pipeline chart shows the value of deals due to close this month, split by opportunity stage.

Those deals that are in Prospecting, for example. If our average sales cycle is three months, are we confident those deals on the sales pipeline chart will close this month? Should some of them be at a more advanced Stage? Do the close dates need to be moved to a later month? Have the close dates on some of this opportunities slipped from one month to another before?

The same with the Investigation and Proposal Made Stages. Are we really going to close these opportunities this month? If not, then our October pipeline is significantly over-inflated.

December pipeline strength

Let’s look at another month in the sales pipeline chart.

What about those deals in the negotiation stage in December? Is it really going to take us three months to close these deals? Is there anything we can do to bring them forward?

The sales pipeline chart shows deals scheduled to close in December.

In fact, looking at the sales pipeline chart for December, we have a lot of funnel value that’s due to close. But just how robust is that? Are these deals in December because the financial year of many customers ends that month? If so, we can legitimately expect many deals to get completed in the run up to Christmas?

Have many of the opportunities due to close in December been sitting in our pipeline for a long time? Have sales people entered December as the close date on the basis that (hopefully) the opportunity is “bound to be closed” sometime during the year?

If that is the case, then the December pipeline is nowhere near as strong as we might hope.

January pipeline strength

The sales pipeline chart shows there’s a dip in the size of the funnel in January.

The sales pipeline chart shows there's a dip in the size of the pipeline for January.

Is this due to legitimate seasonal variation? Or is it something we should be concerned about? As a sales manager, do I need to start organizing some marketing campaigns now, with a view to boosting the pipeline 3 or 4 months from now?

12 Must Have Charts For Your Salesforce Dashboard

Download the FREE eBook today from our website

Deals due to close before today

Let’s stick with our assumption that right now we’re in the middle of October.

What are these deals doing here on the sales pipeline chart? The ones with the close date in September.

Opportunities with a close date earlier than today are revealed on the sales pipeline chart.

Unless you have a time turner, these deals aren’t going to close in September!

But we see this very often. Open opportunities with close dates in the past. Either those deals have already closed and the opportunity stage hasn’t been updated. Or, the close date needs to be moved because they are still open.

A case in point. Colin Parish, VP of Sales at Moderna downloaded the dashboard package containing the sales pipeline chart. But Colin’s chart didn’t look like our beautiful example, based on his own sales data. That’s because Colin’s funnel was full of opportunities with close dates in the past. Read how Colin solved this problem.

Underlying report for the sales pipeline chart

Let’s go down to the underlying report.

The report provides more detail than we saw in the sales pipeline dashboard chart.

The report provides more detail than we saw in the sales pipeline dashboard chart. The report data shows the specific value of opportunities that are due to close by month, by each opportunity stage.

Like any other report, we can click on the Show Details button to see the underlying opportunities.

Like any other report, we can click on the Show Details button to see the underlying opportunities.

Now we can start to interrogate the individual opportunities that make up the chart and report data.

Right click on any opportunity to open it in a new tab. This way you can examine the individual opportunity details, whilst still retaining the open report.

Sales Pipeline Chart Video

The sales pipeline chart and underlying report give sales managers robust visibility of the funnel, in a meaningful and useful way.

And of course like any other chart, it doesn’t just need to be visible to managers. Team leaders and individual sales reps can manage their own pipeline, using this exact same sales pipeline chart.

In the video below I explain how to use the sales pipeline dashboard chart and the underlying pipeline report to manage the funnel effectively.

Create the Sales Pipeline Chart

If you don’t want to download the full 12 Must-Have Salesforce Dashboard Charts, then here are step-by-step instructions for creating this salesforce dashboard pipeline chart and underling pipeline report.

  1. Start on the reports tab, click new report then select an Opportunities report.
  2. Adjust the basic filters. Set Opportunity Status to Open. Set the time Range to All Time.
  3. Set the Format to be a Matrix report by clicking on Tabular Format.
  4. On the left hand side chose Opportunity Stage.
  5. Across the top of the report chose Close Date. Adjust the date format to Group By calendar month.
  6. Pull the Amount field into the body of the report.
  7. Click on the Show link to remove the record count. Repeat the process to set the report to Hide Details.
  8. Run the report to check that it looks the way you expect.
  9. Now create a chart directly in the report. Click on Add Chart in the Customize section.
  10. Choose the vertical bar chart.
  11. On the Y axis select the Opportunity Amount.
  12. On the X axis select the Close Date.
  13. In the Group by, select Opportunity Stage.
  14. Now choose the stacked bar chart.
  15. Click on the Formatting tab. Put the legend below the chart. Enable the hover. And put the chart below the report.
  16. Now run the report and check your chart.
  17. Save the report (remember, not in your Personal Folder, no-one else will be able to see it).
  18. Click on the dashboard tab and select the dashboard to which you want to add the chart.
  19. Click on Edit on the Dashboard.
  20. Drag a bar chart from the left hand pane onto the dashboard.
  21. In the Data Sources tab, find the report you want to use for the dashboard. Drag it onto the component you’ve just added to the dashboard.
  22. Rather than creating a new chart within the dashboard, let’s pull in the chart we’ve already created on the report. Click on the spanner symbol on the chart. Tick the checkbox, ‘Use chart ad defined in source report’.
  23. Finally give it a header and a title so that people know exactly what they’re looking at.

If in doubt watch the video – I demonstrate fully how to create the report and dashboard chart.

Related Sales Pipeline Blog Posts

12 Must-Have Salesforce Dashboard Charts | With Video And Examples

3 Ways To Measure Performance Against Sales Target In Salesforce In 2017

How To Stop ‘Closed Lost’ Screwing Up Salesforce Dashboards

Big is beautiful: The 4 easy dashboard charts you need to measure pipeline size

Big is beautiful: The 4 easy dashboard charts you need to measure pipeline size

Big is beautiful: The 4 easy dashboard charts you need to measure pipeline size

Size matters.

Don’t let anyone tell you otherwise.

Big is beautiful. At least when it comes to pipeline size.

That’s all other things being equal, of course. Bigger is better, assuming the sales pipeline only contains deals of the right quality. To make sure this is the case, there are a number of dashboard charts and reports that accurately measure sales pipeline quality.

So, here are the four salesforce dashboard charts and underlying reports that accurately measure the size of the sales pipeline.

1. Pipeline size by Close Date and Stage

If you only create one pipeline size dashboard chart then make it this one. It’s the starting point for any funnel review focused on pipeline size.

Salesforce dashboard chart showing pipeline size by month and stage.

The dashboard chart shows the size of the pipeline by Close Date. The individual segments group the pipeline size by Opportunity Stage.

Why this chart is useful

Use this chart to assess the size and strength of the pipeline, both near term and into the future.

Here are three examples of the insights this chart gives.

  • Pipeline size this month. The dashboard chart in our example shows the pipeline for September is £2.5M. Let’s assume the typical sales cycle is 3 months. In which case, we need to confirm how many of those deals in the Prospecting Stage can be relied upon to successfully close this month.
  • Negotiation Pipeline. October and November both have deals at the Negotiation Stage. Is it really going to take several months to conclude these opportunities? Maybe. But it is also probably worth investigating whether these deals can be brought forward to boost this months’ revenue.
  • End of year pipeline. December shows an upturn in the size of the pipeline. We need to know if this is realistic. Is there a compelling reason why more deals will close this month? Sometimes December 31st is entered into opportunities on the basis of, “well, it’s bound to close sometime this year”. If so, then the December pipeline size is overstated.

If you like the sound of this dashboard chart that measures pipeline size then read “If You Only Create One Chart Make It This One” (video included).

Incidentally if you have the same problem as Colin Parish – lots of opportunities with close dates in the past – here’s what to do about it.

2. Standard funnel size dashboard chart

This chart shows the pipeline size in the form of a traditional sales funnel.

Opportunity funnel dashboard chart showing total sales pipeline.

It’s often the first chart that gets created on the dashboard because it’s the one that resembles a traditional funnel.

Why this chart is useful

Actually, we have mixed views about this chart.

The funnel chart is a good way to check whether the pipeline is in proportion.

In the chart above, for example, the value of deals in the Investigating Stage and Customer Evaluating Stage is almost identical. This suggests a shortage of pipeline in the earlier Investigating Stage. It’s highlighting that the funnel is out of kilter.

Here’s another example. Look at the funnel size chart below.

Pipeline size displayed on a funnel dashboard chart highlighting that there is a shortage of early-stage opportunities.

The total pipeline is exactly the same. But the pipeline is short of deals at the first Opportunity Stage, Prospecting. Again, it’s highlighting a sales revenue problem down the road.

But there’s several things to watch out for with this chart.

First, there’s not time context with this chart. It shows the total size of the pipeline, irrespective of when those deals are likely to close.

Second, the shape of the dashboard chart doesn’t vary with the amount of pipeline at each Stage. What does vary is the height of the slices and the numbers within them.

So be careful. This pipeline size dashboard chart is a good one to eyeball every week. It describes whether the total pipeline is in proportion. And that’s a good reason to have it on your dashboard.

12 Must Have Charts For Your Salesforce Dashboard

Download the FREE eBook today from our website

3. Pipeline size dashboard metrics

When is a dashboard chart not a chart? When it’s a dashboard Metric.

Here’s an example of what we mean.

Dashboard metric showing total pipeline size.

A salesforce dashboard metric gives a single total figure that it pulls from the underlying report.

So, to easily view the total size of the pipeline, use a metric.

Here are two other examples. First, the total value of open opportunities due to close this month.

Dashboard metric showing total pipeline size due to close this month.

And second, the size of the pipeline due to close next month.

Dashboard metric showing total pipeline size due to close next month.

What it’s good for

Dashboard metrics give an immediate understanding of the overall size of the pipeline.

In the example above, if you know your sales target for next month £0.5M, then all other things being equal, you’re probably in good shape. If the target is £1.5M you’ve got a problem. But least you know there’s a problem, and that gives you chance to do something about it.

4. Trend in the size of the pipeline

This chart measures the trend in the size of the pipeline. It’s called the As-At Historical Pipeline Trend report and dashboard chart.

As-At dashboard chart that displays the size of the pipeline on the 1st day of each month.

The chart shows the size of the pipeline As-At the first day of each month. We can see here that the month-on-month trend is positive. The pipeline is getting bigger.

What it’s good for

Effective sales managers know the size of the pipeline at any point in time.

But they also know the trend in the size of the pipeline. The trend tells them whether they are doing the right things. Moving in the right direction. Making headway.

This dashboard chart also comes with a little sister that measures the trend in pipeline size on a daily and weekly basis. Read this blog post to find out more about pipeline size trend dashboard charts.

Pipeline size salesforce dashboard

Here’s what a salesforce dashboard might look like with these four charts that measure sales pipeline size.

Salesforce dashboard chart that gives management insight into the pipeline and funnel size.

The dashboard charts give sales executives the essential information on pipeline size. And the bigger the size of the pipeline, the more you are likely to sell.

All other things being equal.

But size is no good without high quality. It’s important to identify which deals need to be questioned in terms of close dates. That’s why we’ve also published blog posts that demonstrate specific dashboard charts to measure the quality of deals in the sales funnel. Combine with the pipeline quality charts with pipeline size charts to get the complete management picture.

For help with all things dashboards, of course, don’t hesitate to get in touch.

 

Related Blog Posts

12 Must-Have Salesforce Dashboard Charts | With Video And Examples

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3 Killer Pipeline Quality Metrics To Highlight When To Be Sceptical

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How to tell if your sales funnel is emitting warning signals

How to tell if your sales funnel is emitting warning signals

It’s easy for sales managers to get distracted with the here and now. Especially when there’s constant pressure to hit this month’s target.

Today may look rosy. Or not. But your sales pipeline shape may be a warning signal of a future revenue problem.

And that problem is a missed sales target three, four or five months from now.

Sales managers need to understand whether they’re storing up a problem for the future. They can do that by looking at the shape of their sales pipeline.

It needn’t take long.

Here are two eyeball checks to see if your sales pipeline shape is emitting a warning signal. The checks will tell you whether you should be initiating marketing and business development activities now, to meet sales targets in the future.

Let’s say your sales cycle is typically 3 months. The shape of your sales pipeline tells you whether you have enough early stage opportunities to win revenue three, four or five months from now. That’s the first check.

The second check is to look at the timing of these opportunities. You need to understand whether the early stage opportunities that you do have, are in the right place.

Sales pipeline shape

Take a look at the pipeline chart below taken from a salesforce dashboard.

Sales pipeline shape showing opportunities by stage.

The chart shows all open opportunities grouped by opportunity stage. What we’re interested in are the shape of each segment. They show the breakdown of the sales pipeline by opportunity stage.

In this case our early stage pipeline looks good. The colour shading and numbers on the chart show that we have progressively more pipeline at earlier stages in the funnel.

Now have a look at the pipeline chart taken from another business.

Pipeline shape with not enough early stage opportunities.

This time it’s not so good. The early stage funnel is smaller than the middle or later stages. Just one look at the chart suggests we’re storing up a problem for the future.

In other words, the pipeline chart shows at-a-glance, whether the overall shape and composition of our funnel is a cause of concern.

And of course, you can run this chart at any level in the sales hierarchy. So examine the pipeline shape at individual, team and product level to understand the health of the pipeline.

12 Must Have Charts For Your Salesforce Dashboard

Download the FREE eBook today from our website

Sales pipeline timing

The funnel chart gives an immediate indication of the shape and health of the pipeline.

But we also need to know about timing. Specifically, are the early stage pipeline opportunities related to deals that are due to close some months from now? If your sales cycle is 3 months and these early stage opportunities are all due to close this quarter, then you might have a problem.

Look at the chart below. It relates to the second funnel chart we looked at a moment ago.

Significant proportion of the early stage opportunities are due to close this month.

We saw in the funnel chart that the early stage pipeline is too small. And now look at the timing. A significant proportion of the early stage pipeline is due to close this month. So now I’m immediately sceptical that I’ll meet the revenue target for this month.

In this case there is relatively little early stage pipeline three to four months from now. In many B2B sales environments, that’s a sure sign of an impending revenue problem.

In comparison look at the dashboard chart below. It shows the time-based spread of the opportunities in the first funnel chart.

Most of the early stage opportunities are due to close in later months.

There’s relatively little early stage pipeline due to close this month or the next. In contrast, most of the early stage opportunities are due to close three to six months from now. There’s a good head of steam built up to meet future sales targets.

By the way, we’re written a blog post specifically on using and creating the Open Opportunities by Stage dashboard chart. The article includes a video of Gary demonstrating how to apply the information in the chart and step-by-step on how to create it. It’s chart #2 in our series of the ‘12 Charts that should be on your salesforce dashboard’.

Investigate the pipeline shape further

These dashboard charts tell you in one eyeball glance whether you’ve enough early stage pipeline. If you think you’ve a problem then the first thing to do is look into more detail. Find out exactly where the funnel shape is wrong.

Drill down on the charts by team and opportunity owner. Look to see whether the shortage of early stage opportunities lies predominantly in one territory or geographical area. If you use products on opportunities (which you should!) then create the same reports based on opportunity line items. That way you can determine whether the problem is confined to one product family.

Also check there’s not sandbagging going on. In other words, are sales reps deliberately holding opportunities outside salesforce until they’re confident the customer is going ahead? If that is the case, then you’re missing the visibility of sales performance needed to manage a team effectively. It also makes it impossible to accurately assess how deals are leaking from the sales funnel.

Once you have a detailed understanding you can decide on the marketing and business development actions that will protect future sales volumes.

So act now – create the dashboard charts that tell you about the shape and size of your sales pipeline. Then have a quick glance to check they’re not giving off warning signals!

And now, read our 5 tip guide to creating high impact salesforce reports.

Related Blog Posts

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How to use opportunity conversion reports for superior results

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Sandbagging Might Be Ruining Your Sales Pipeline Visibility

Sandbagging Might Be Ruining Your Sales Pipeline Visibility

What a Hero!

Last day of the quarter. He’s pulled another rabbit out of the hat. Closed a big deal out of nowhere. Turned our below budget forecast into an above target winner. He’s saved our bacon.

And not for the first time. Warren the Hero.

But is he truly the hero? Or the pantomime villain? In other words, is he a sandbagger?

Recognise the behaviour but not sure what the term sandbagging means? It means “hiding the strength, skill or difficulty of something or someone early in an engagement”. The term was popularised in one-to-one games and sports such as pool, boxing  and wrestling. Lull your opponent (or your manager in this case!) by hiding your true strength then deliver the killer blow when he’s least expecting it.

Have you ever seen this in any sales teams?

For some sales people, the last thing they want on a large deal is the VP of Sales breathing down their neck. Keep it off the radar. Leave it at an early stage in the Opportunity lifecycle. Push the Close Date out a couple of months. If the deal doesn’t work out, quietly close the opportunity. Chances are no-one will notice.

And if it does work out, you’re the star!

So why is sandbagging a problem? After all, our hero has delivered the goods.

It’s a problem because managers should influence sales team behaviour based on a judgement of whether there’s enough sales funnel to achieve the revenue target.

If the sales funnel is too small, the sales team needs to focus on identifying new opportunities. If there’s enough funnel to meet the sales target, there’s more emphasis is on closing existing deals. Having an incorrect view of the pipeline as a result of sandbagging is going to drive an emphasis on one course of action; when in fact you should be taking another.

Spot sandbagging using salesforce reports

So how do you use salesforce reports and dashboards to spot sandbagging?

Here’s how.

Have a look at the salesforce report below. It shows, for the last quarter, the “From” Opportunity Stage for all deals that were set to Closed Won.

Salesforce report and dashboard chart that shows the From and To Changes in the Opportunity Stage.

We can see that in 8 cases, the Opportunity was set to Closed Won from the Negotiation Stage. Another 4 made it to Closed Won from the Proposal Made and one from the Investigation Stage.

But 3 Opportunities were set to Closed Won directly from Prospecting. You can see this in the top row of the report and the first column in the chart.

So what is this report telling us? It’s telling us we might have a problem with sandbagging.

In every business there are deals that seem to jump out of nowhere. The customer calls and says “I need to buy from you today”. It happens. But if your typical sales cycle is several months, it doesn’t happen all that often.

So the report is a starting point for identifying sandbagging. It tells us we need to investigate further. Drill down to each Opportunity to see whether it relates to a new or existing customer. Have a look at the Created Date. Examine the Stage History and Activity History. There’s probably enough information there to determine if this is a case of sandbagging, or whether the deal legitimately moved directly from the first stage to the last.

But can the report be spoofed?

If the Owner moves the Opportunity Stage from Prospecting Stage to the Negotiation Stage and then onto Closed Won, it’s not going to show up on the report. But there is a way to spot-check this.

Have a look at the screenshot below. It’s the Stage History taken from the page layout of an Opportunity that moved from Negotiation to Closed Won.

Stage History on an Opportunity to determine whether the report has been spoofed.

The Stage History shows that this Opportunity moved from Prospecting to Negotiation and then to Closed Won, all on the same day. In this case, all the space of a few minutes.

Quite possibly a sandbagger at work!

Clearly it’s not realistic to do this spot-check on every single Opportunity. But reviewing a few at random, and checking those that close toward the end of the sales period, will quickly reveal whether there are incidents of sandbagging. And the fact that sales people learn your reviewing these deals is likely to be enough to prevent it happening.

Hero’s do exist in sales teams. Lots of them.

But that doesn’t mean you have to let sandbagging ruin your sales pipeline visibility!

PS No rabbits were harmed in the creation of this blog!

12 Must Have Charts For Your Salesforce Dashboard

Download the FREE eBook today from our website

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How to use opportunity conversion reports for superior results

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5 Killer Ways To Increase Your Salesforce Benefits

5 Killer Ways To Increase Your Salesforce Benefits

Last month we gave you 5 Compelling Ways to increase your salesforce.com benefits.

As promised, here’s another five ways our customers have increased the benefits they deliver from salesforce.com. See which ones apply to you.

1. Improve sales funnel management

Nearly every sales funnel contains padding. Deals that rumble along month after month. Opportunities that with the best will in the world, are unlikely to ever close successfully.

It’s these Opportunities that are artificially inflating your sales funnel and giving everyone a false sense of future revenue.

So improve sales funnel management in your company by identifying these lame duck deals and weeding them out. Here’s three metrics that help you do just that:

– Number of Close Date changes.
– Number of days since the last update in the Opportunity Stage.
– Number of days the Opportunity has been open.

These are key metrics that measure the quality of opportunities in the sales funnel. Tracking these metrics will improve the effectiveness of your sales funnel management.

These metrics increase salesforce.com benefits by measuring the quality of opportunities in the sales pipeline.

Let’s say your typical sales cycle is 90 days. The Opportunity in the screenshot above has been open for 143 days. The Close Date has moved 12 times. And the Opportunity Stage was last updated 60 days ago. Can you rely on this deal to successfully close? Probably not.

Combine these metrics with sales target solutions to determine whether you’ve sufficient opportunities in your sales funnel to meet your revenue goals.

Remove The Poor Quality Sales Deals That Inflate Your Sales Funnel explains how to increase your salesforce.com benefits by creating these metrics.

2. Use Product Schedules to track future revenue

Many businesses do not receive the total value of an Opportunity in a single invoice.

The traditional sales funnel view gives good insight into the total value of potential deals. But it does little to inform management on how the income or cash will be received. Here are five examples of situations where Product Schedules can bridge that gap:

  • Recurring revenue models, such as maintenance or support contracts.
  • Manufacturing businesses, in which the goods are shipped and invoiced over several months.
  • Framework agreements, in which a customer draws-down orders against an overall contract.
  • Project-based sales, in which revenue is invoiced based on work completed.
  • Transactional sales, in which customers make multiple repeat orders over the course of the year.

In other words, Product Schedules are highly useful when the Opportunity Amount is invoiced and received through a number of instalments. They enable revenue recognition to be managed in salesforce. And they significantly increase sales funnel visibility by projecting how the gross sales value on potential deals will be invoiced over time.

Creating custom Product Schedules enables even more advanced functionality. Here’s an example of an s-curve revenue schedule in salesforce.com used by a customer in the construction industry.

S-curve in salesforce used in the construction industry.

Reports and dashboards show the accumulated Product Schedules across all Opportunities to generate a revenue profile for the months and years ahead.

Use Product Schedules For Revenue Recognition And Funnel Visibility explains how the standard salesforce Product Schedule feature works. It also demonstrates how custom Product Schedule solutions can easily be created to significantly extend your salesforce.com benefits and forecast recurring revenue. If you want to know more in general about using Products in salesforce then Learn The Basics; and even try The Ultimate Guide to Product Price Books.

3. Load Invoices or Orders into salesforce

Many businesses rely upon regular repeat orders from existing customers. For these companies, an Opportunity represents the process of acquiring a new customer that will subsequently make many repeat purchases. These repeat orders will often be processed through an ERP or Finance system rather than directly through salesforce.

Importing the actual Order or Invoice data into salesforce on a regular basis provides powerful insight that drives business development and account management. It reveals customers whose orders are increasing or decreasing. And allows managers to track the relationship between business development activity and invoiced revenue.

Orders imported against the Account record and inline charts used to display the trend in Order value and increase salesforce.com benefits.

The screenshot shows Orders imported against the Account record and in-line charts used to display the trend in Order value. In this particular customer, the Orders are also automatically linked to a Target record to track performance against target in salesforce.

Getting the data into salesforce doesn’t necessarily require full blown integration. Quite the contrary. We have many customers that load Invoices or Orders into salesforce using the Data Loader on a weekly or monthly basis.

4. Use web to lead to capture new sales enquiries

It’s amazing how many companies don’t implement web to lead.

Most business people will acknowledge that the quicker you get in touch with a new Lead, then the greater the chance of a sale. This is particularly the case when the prospect contacts several companies. Being the first to respond dramatically increases your probability of success.

Yet very often companies using salesforce.com fail to implement web to lead. This is a shame, because it gives an easy way to capture new leads from your web site and immediately direct them to a person that can respond quickly.

Here’s what you can do with web to lead:

  • Automatically insert new Leads into salesforce from a Contact Us page on your web site.
  • Immediately send an acknowledgement email to let the prospect know you’ve got his enquiry.
  • Automatically send prospects content (white papers, case studies, product specifications) that they request from a form on your web site.
  • Automatically assign the Lead to the person or team that can respond quickly.
  • Use multiple web to lead forms on a single web site, each tailored to a particular product area or geographic region.

And of course reports and dashboards provide management information on how well each Lead Source is performing and how quickly sales teams are responding.

The web to lead wizard makes it easy to integrate salesforce with your web site.

The web to lead wizard in salesforce makes it easy to integrate salesforce with your web site.

There’s plenty of advice available on using web to lead to increase your salesforce.com benefits.

5. Use Quotes with Opportunities and Products

So you’re already using Opportunities and Products. And now maybe you’re considering Product Schedules. Why would you want to muddy the water with Quotes?

Let’s say a customer asks you for two different versions of the same proposal. You want to keep both because you don’t know which one he’s going to choose.

Of course the value of the Opportunity is NOT the sum of the two Quotes added together. The Quotes are mutually exclusive. The customer is going to accept one or the other. So how do you calculate the value of the Opportunity?

The answer to this is Quotes. You can create multiple Quotes on an Opportunity. Each Quote can have its own combination of Products. You decide on the ‘most likely’ Quote. It’s this Quote that is synchronised to the Opportunity and is populated into the Opportunity Amount.

If the customer changes his mind and chooses one of the other Quotes, no problem. Just synchronise that Quote to the Opportunity.

Single Opportunity with multiple Quotes

The screenshot shows a single Opportunity in salesforce with multiple Quotes. Quote 1 is synchronised to the Opportunity. It’s the value of this Quote that is counted for funnel purposes.

Using Quotes means you can increase your salesforce.com benefits by:

  • Getting an accurate view of the number of Quotes you’ve sent.
  • Differentiating between Quotes and Opportunities.
  • Retaining each Quote on the Opportunity so you’ve got a record of what’s been sent to the customer.
  • Integrating Quotes with third party applications such as Conga ComposerEchosign or DocuSign to automate the physical production, delivery and acceptance of the Quote.
  • Integrating Quotes with Approvals to streamline Pricing Approvals and Quality Assurance processes.

Learn more about How And When to Use Salesforce Quotes on it’s dedicated blog post.

Increase your salesforce.com benefits

It’s always possible to drive more benefits from your salesforce licenses. We’ve given you ten examples of how that can be achieved in these two blog posts. And of course don’t hesitate to get in touch if you’d like to discuss implementing these ideas into salesforce.com in your own business.

Related Blog Posts

Why You Need To Compare Average Closed Won Opportunity Size

How to use opportunity conversion reports for superior results

How To Stop ‘Closed Lost’ Screwing Up Salesforce Dashboards

5 Easy Tips That Will Make Opportunity Probability Your Trusted Friend

12 Must-Have Salesforce Dashboard Charts | With Video And Examples

12 Must-Have Salesforce Dashboard Charts | With Video And Examples

Salesforce dashboards to increase visibility of the sales pipeline and improve forecasting accuracy.

There’s no doubt about it.

That’s the number one reason businesses invest in salesforce licenses.

Yet many sales managers are frustrated.

They still do not have the salesforce dashboard charts that give visibility into the size, quality and trend in the sales pipeline needed to forecast accurately. They also can’t look back at historic results to gain the insight that will drive improvement in future sales performance.

But that problem can be fixed.

Here are examples of the 12 must-have salesforce dashboard charts that every sales manager needs.

These salesforce dashboard charts, and the underlying reports, give tremendous visibility into the sales pipeline and sales performance. For each dashboard chart, we also point you to a dedicated blog post and other resources for even more in-depth information.

In the interests of brevity we’ve ignored variations of these charts. These variations can provide additional insight for your business by analyzing sales performance by product, campaign, territory, customer type and so on. Use the charts examples recommended in this blog post as the core building blocks to create your organization-specific salesforce dashboard and reports.

1) Closed Won Opportunities by Month

We all want to know how much sales revenue has been won. That’s what the Closed Won Opportunities by Month dashboard chart tells us.

The chart shows how much sales revenue the company has achieved during the financial year.

Closed Won Opportunities chart on the salesforce dashboard measures revenue achieved this financial year.

In this example, the dashboard chart and underlying report summarize the information by individual sales person. If you have a larger sales organization, then group the chart by team, country or territory.

The dashboard chart and report give top-level insight into sales performance. In our example, Dave Apthorp is consistently the top performer. Sarah has improved her performance significantly after a poor start to the year. Peter, in particular, can benefit from coaching and training to improve his performance.

Combine this information with your personal knowledge of each team or individual to get an immediate overview of sales performance across the company. Use the other dashboard charts that analyze historic performance (for example conversion rates, average deal size) to determine the specific support and actions each person needs to take in order to increase their sales results.

Incidentally, the trick here – as with many salesforce dashboard charts – is to create the graph as a stacked bar chart and the underlying report as a Matrix report. Yes, it’s slightly easier to create a Summary report. However it’s only a small step further to create a Matrix report. And the results are so much more powerful.

Of course, the Closed Won Opportunities by Month dashboard chart doesn’t tell us anything about future revenue performance. That’s where the other pipeline charts we recommend come into play.

Blog posts related to this salesforce dashboard chart:

10 Illuminating Ways To Measure Closed Won Deals. Examples of other ways to analyze historic sales performance.

When Is A Report Not A Report. Demonstrates why Matrix Reports are nearly always better than Summary Reports.

2) Pipeline Deals by Close Date and Opportunity Stage

If you only use one dashboard chart to manage the sales pipeline then make sure it’s this one.

Opportunity pipeline report and chart on the salesforce dashboard shows deals due to close over the coming months.

The chart shows the value of Opportunities that are due to close each month. Within each month, we can see the deals in terms of the Opportunity Stage. Stacking the chart by Stage gives visibility of the overall health of the funnel.

The Pipeline Opportunities By Close Date and Opportunity Stage dashboard chart delivers the fundamental information needed to manage the sales funnel. Sales managers and executives can use this chart to assess the size of the pipeline and to begin forecasting future revenue.

This dashboard chart also tells us whether the pipeline is sufficiently mature this month and next month to achieve revenue targets. This means managers and salespeople have an early warning that tells them when remedial action is necessary

For example, let’s assume we are in January.

There’s a substantial amount of pipeline due to close this month that is still in Prospecting and Investigation. If, for example, our typical sales cycle is 3 months, are we confident these deals will close in January? Are they at the right Opportunity Stage? Should these opportunities be scheduled to close in a later month?

What about the deals in April that are in the Negotiation Stage? Is it really going to take 4 months to close these opportunities? Maybe. Or are there steps we can take to bring these deals forward?

A key variant of this dashboard chart is the Pipeline Opportunities by Close Date and Owner.

Examine the pipeline by opportunity owner using this salesforce dashboard chart.

Use the summary by Owner to identify which teams or salespeople have the most pipeline due to close both this month and in the longer term.

Blog posts related to this salesforce dashboard chart:

If You Only Create One Dashboard Chart Make It This One. This blog posts gives more examples of how to use this dashboard chart and includes a video by Gary demonstrating the chart in action.

If You Only Create One Dashboard Chart Don’t Let It Look Like This! Explains what to do if too many opportunities with Close Dates in the past make your beautiful chart look like a washing line!

3) Traditional Funnel Chart

The traditional funnel chart should be on your sales dashboard because it’s a good graph to look at – once a week.

The traditional funnel salesforce dashboard chart reveals whether the pipeline shape is in proportion.
Here’s the thing about this chart. The shape never changes.

It doesn’t matter how big or how small your pipeline is. The outline funnel shape will always be the same size and shape on your dashboard.

So why bother with it?

Well, the answer is because of the value of the information the segments within the funnel give you.

If the funnel was in perfect shape, the value of the pipeline in each segment would get progressively smaller.

But that’s not always the case. In fact, if you look at our example, the value of deals in Investigation is less than the value in Customer Evaluating. In other words, the later Stage has more pipeline than the preceding Opportunity Stage.

Look also at the Prospecting Stage. A significant number of deals may be qualified out at this initial stage. So, should the Prospecting Stage be larger?

In other words, the chart is warning that your pipeline may be out of shape. Potentially we need to initiate marketing campaigns to boost the size of the early-stage funnel. We may also need to examine our qualification and investigation processes in order to move deals more effectively through the sales cycle.

Is the shape of the traditional funnel chart in your business a cause for concern? Only you know the answer to that question within the context of your sales team.

But that’s why it’s a good chart to look at once a week.

Blog posts related to this salesforce dashboard chart:

Big is Beautiful: 4 Easy Charts To Measure Pipeline Size. Demonstrates the traditional funnel and other dashboard charts to measure pipeline size.

12 Must Have Charts For Your Salesforce Dashboard

Download the FREE eBook today from our website

4) Top 10 Pipeline Accounts

In most companies, the sales team will be able to nominate immediately the top one or two prospects.

But what about the top 5? Or the top 10?

The Top Pipeline Accounts table shows customers and prospects ranked by total pipeline. This helps managers and salespeople in prioritize their time. It means salesperson effort, time and other resources is focused on areas where it is likely to have the greatest impact.

Prioritize salesperson time and effort using the Accounts with most pipeline salesforce dashboard chart.Displaying the information on a dashboard table is a good way of focusing attention on the top Accounts. Limit the dashboard table results to the top 5, 10 or 15. Then on the underlying report, list all Accounts with Open Opportunities.

In our example, we can see that High Hill Estates has the greatest amount of pipeline. In fact, it has twice as much sales pipeline as the next nearest Account.

Are we proactively managing the relationship with this Account? Is a robust key account management plan in place? Do we understanding their buying process? Have relationships been established at multiple levels? Has a clear close plan been established and validated with the customer for each opportunity?

The underlying report shows the constituent Opportunities for each Account. Can a large, single deal be done if the report reveals the total figure for High Hill Estates comprises multiple, separate opportunities? Indeed, if the CEO has time to visit only one Account, let’s make it this one.

In short, the Top 10 Pipeline Accounts dashboard table and report provide the essential information that helps executives prioritize the companies’ sales, account management and business development activities.

And don’t forget, like any other dashboard chart, replicate the table at territory, team and individual salesperson level to prioritize activity at all levels in your sales organization.

Blog posts related to this salesforce dashboard chart:

How To Build Key Account Plans In Salesforce. Demonstrates examples of key account planning within salesforce.

Stop Guessing, Start Measuring Key Accounts. Reports and salesforce dashboard charts that measure key account performance.

5) Long-Term Pipeline Trend

Dashboard chart numbers 2 to 4 describe the sales pipeline as it stands right now.

But what about the trend in the size of the sales funnel over time? Is the pipeline increasing or decreasing in size?

The Sales Pipeline As-At chart gives us the answer. It measures the size of the pipeline ‘As-At’ the 1st of each month. As such, it shows the long-term trend in the size of the sales pipeline.

The Long Term Pipeline trend dashboard chart shows the size of the sales pipeline on the first day of each month.Grouping the information by Historical Stage gives additional insight on the make-up of the sales pipeline. It allows us to understand the overall trend by Opportunity Stage.

In our example, the pipeline has been growing over recent months. This is largely due to a significant increase in deals in the Prospecting Stage. That’s good news. Do we understand why it has happened?

We may also want to investigate why the size of the pipeline in the Customer Evaluating and Negotiation Stages has declined. Are the sales team having trouble moving deals through the sales process? Was the pipeline created over the last few months of the right quality?

The As-At Pipeline chart has a little sister. It’s called Opportunities with Historical Trending. This chart measures the short-term trend in the pipeline. For example, the trend in the size of the pipeline over the last 4 weeks.

Use the dashboard charts in tandem to understand the trend in the size of the pipeline. The As-At report gives the big picture – it tells whether efforts to grow the pipeline in the long-run are effective. The Historical Trending chart demonstrates whether short-term initiatives to boost funnel size are successful.

Blog posts related to this salesforce dashboard chart:

Measure The Trend In Your Sales Pipeline. Demonstrates the Long-Term Pipeline Trend and Short-Term Pipeline Trend salesforce dashboard charts in action.

6) Open Opportunities by Created Date

Size isn’t everything. Quality matters too.

Here’s a simple but effective way to assess pipeline quality. It’s the Open Opportunities by Created Date dashboard chart.The Pipeline by Created Date dashboard chart is an excellent way of examining the age and quality of the sales pipeline.The chart shows the existing funnel, summarized by Created Month and current Stage. You may also want to create a similar report and dashboard chart that summarizes the information by Created Month and Opportunity Owner.

Let’s say it typically takes three months to close a deal in your business. If there are significant number of opportunities open much longer than this, then are these genuine, viable deals?

As such, the chart and underlying report give executives the information they need to start the process of validating the sales pipeline.

In our example, let’s assume we are in January 2017 and that our sales cycle is typically 3 months. What about the opportunities opened in February, March and April 2016? Are we confident they are legitimate opportunities? Did the Close Dates shift regularly simply to maintain the size of the pipeline? What action should we take to bring these deals to fruition?

Reviewing the pipeline by Created Date is a simple, but effective way of identifying potentially dormant deals in your pipeline. But it also gives valuable information on how much pipeline is being created month-on-month.

Look again at our example chart. Progressively less pipeline was created over the last 3 months of the year. Should we be concerned about this? Perhaps it’s due to a strong focus by the sales team on closing existing deals before the end of the year. On the other hand, is it an early warning that we may have insufficient pipeline to meet our sales targets in Q1 2017?

Either way, we may need to implement marketing and business development initiatives to correct the trend.

Blog posts related to this salesforce dashboard chart:

How To Tell If Your Sales Funnel Is Emitting Warning Signals. salesforce dashboard charts that indicate the pipeline may contain ageing deals of low quality.

12 Must Have Charts For Your Salesforce Dashboard

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7) Pipeline Quality Metrics Table

If you want to predict tomorrow’s weather here is the most statistically reliable way to do it. Whatever the weather is like today, forecast that is how it will be tomorrow.

Sales deals are similar.

Deals that are stuck today will probably be stuck tomorrow. Opportunities that slipped last month are more likely to slip this month.

Here are three pipeline quality metrics that act as a barometer for managers and salespeople.

Three metrics on the salesforce dashboard highlight deals that are likely to slip from one month to another and result in the sales forecast being missed.

1. Number of Close Date Month extensions. This counts the number of times the Opportunity Close Date has shifted from one month to another.

2. Number of Days Since The Last Stage Change. This is the number of days since the Opportunity Stage was last updated.

3. Number of Days Open. This is the number of days the Opportunity has been open. The clock stops counting when the deal is Won or Lost.

Display the information in a dashboard table. In our example, we are showing the metrics for the top 10 deals due to close this month, ranked by the number of days they have been open.

This is high impact stuff. The table is a powerful way to draw the eye to deals due to close this month that need to be scrutinized.

Are we relying on these deals to hit our sales quota this month? How confident can we be that each opportunity will not slip to another month? Will the sales cycle complete satisfactorily on those deals not updated for a significant period? That may be unlikely.

Use the table to improve the accuracy of sales forecasts. The three pipeline quality metrics do not give the answer in themselves. But they do give a heavy hint on which deals should be reviewed and need an urgent action plan.

Blog posts related to this salesforce dashboard chart:

3 Killer Pipeline Metrics That Highlight When To Be Sceptical. Explains how to use the three metrics to identify deals that might slip from your sales forecast for this month.

8) Opportunity Conversion Ratios / Win Rates

A small increase in Opportunity conversion rates has a disproportionately high impact on overall sales revenue.

That’s why measuring opportunity conversion ratios / win rates is critical.

The opportunity conversion rate salesforce dashboard chart shows the win rate by salesperson for each month of the year.

The Opportunity Conversion Ratio / Win Rate chart shows the percentage win rate over time. It does this in two ways:

  • Win Rate by Amount.
  • Win Rate by Count.

Measuring the win rate in both ways means we can understand whether salespeople are more effective at closing higher value or lower value deals.

In our example, the win rate by Amount is higher in most months. This means we successfully closed a greater proportion of large value deals compared to smaller opportunities.

In September and October, the situation reversed. The team successfully closed a greater proportion of lower value deals.

Did the sales team lose focus on the higher value deals? Did we discount more heavily during these months? Or did we have new joiners that had less experience with larger deals?

The underlying report gives detail about win rates at the individual salesperson level. This is crucial information for identifying coaching, training and support needs.

Nevertheless, be careful. An over-emphasis on win rates can have unwanted consequences. Do not risk encouraging sales people to leave opportunities out of the pipeline until a deal is on the table (i.e. sandbagging).

Conversely, don’t discourage salespeople from setting deals to Closed Lost when opportunities no longer have legs. You need an accurate pipeline, not one full of dormant deals that salespeople are afraid to close-out.

Blog posts related to this salesforce dashboard chart:

How To Use Opportunity Conversion Rates For Superior Results. More in-depth examples of how to use conversion rates and opportunity win rates for effective sales performance management.

How To Measure Opportunity Win Rates Across Teams. Examples of dashboard charts that compare team and pan-company conversion rates.

9) Average size of Closed Won Deals

Recent research with one of our customers shows a 65% variation in average deal size between salespeople in one team.

That is a huge range.

All salespeople are working comparable territories. And selling the same products to similar customers.

Increasing the average deal size for salespeople at the lower end of the scale was a business development priority for this company. Addressing this issue resulted in increased sales revenue without any increase in the number of deals in the pipeline.

This salesforce dashboard chart shows the average size of closed won opportunities for each salesperson.

Many things explain variations in average deal size. These include differences in experience between salespeople, variations in the average number of products sold per opportunity and different levels of discounting by sales teams.

These are challenges that our customer addressed through training, coaching, personal development and adjustments to sales process and pricing strategy.

Nevertheless, unless you quantify this essential metric you will lack the information needed at salesperson level to identify the right course of action to boost revenue.

Blog posts related to this salesforce dashboard chart:

Why You Need To Compare Average Closed Won Opportunity Size. Additional information on using average deal size metrics to identify potential improvements in sales performance. Includes examples of how Opportunity Products can be analyzed to understand which salespeople need to add more optional or non-core products to their deals.

10) Completed Activities per Salesperson

Sales deals do not close themselves. Pipelines do not grow automatically.

Tracking the number of completed sales Activities can provide valuable insight to explain varying levels of sales performance. Review Activity reports in conjunction with the other dashboard charts outlined in this eBook to analyse trends and variations in sales performance.

Sales deals don't close themselves so use the Completed Activities dashboard chart to track salesperson effort in winning opportunities.

In our example, there is an upward trend in the number of Activities completed by the sales team. That’s a positive sign. Indeed, the increase in Activity volume by Sarah may be a strong contributory factor in the improvement in her sales performance over the year that we saw on other charts.

However, we can also see that there are variations in the number of Activities completed by each salesperson. Shaun and Peter have recorded significantly lower levels of Activity compared to Sarah and Dave.

Consider tracking Activity levels by salespeople in several different ways. For example, compare activity with new customers versus existing customers. This will show whether the activities undertaken by salespeople are consistent with the overall sales strategy.

Improve the effectiveness of this dashboard chart by making two small configuration changes in salesforce.

First, modify the Activity Type picklist to values that suit your business. Make the field mandatory, This will provide additional insight on the type of activities that salespeople are completing.

Second, make the Due Date mandatory. This means activities will always be associated with a date. This is essential for producing dashboard charts that accurately count the number of activities completed each month.

Blog posts related to this salesforce dashboard chart:

How To Spot Key Accounts You Should Be Focusing On. Explains how to use Activity Reports and dashboard charts to identify key accounts that need a renewed focus.

11) Leaking Funnel Report

Every sales funnel leaks. That’s the nature of the game. It’s why the traditional sales pipeline chart is shaped like a funnel.

But there’s two things that sales managers need to know about funnel leakage. Is the funnel leaking excessively? And is it leaking in the right place? The Leaking Funnel report tells you both of these things.Use the leaking funnel salesforce dashboard chart to analyze deals that have been lost from the sales pipeline.This dashboard chart measures the number of times Opportunities have moved to Closed Lost from each preceding Opportunity Stage. In our chart, it does this for deals that have been set to Closed Lost in the last 120 days.

For example, the dashboard chart shows that 8 Opportunities have moved from Prospecting, directly to Closed Lost.

All other things being equal, it is good that the first Opportunity Stage has the largest number of Opportunities that move to Closed Lost.

This implies we are qualifying-out deals we are unlikely to win. It means salespeople are not wasting time, effort and resources chasing deals when there is no clear competitive advantage.

However, look at the Negotiation Stage. Five Opportunities went directly from Negotiation to Closed Lost.

Again – all other things being equal – that movement in Opportunity Stage is bad news. It means we invested a considerable amount of time and effort moving the deal through the sales cycle, only to lose the opportunity at the last moment.

Of course, we need further investigation on the movement from Negotiation to Closed Lost before deciding on the right course of action. Is the trend attributable to one particular salesperson? How does the data compare for existing versus new customers? Does it apply only to opportunities with certain product groups?

Blog posts related to this salesforce dashboard chart:

3 Steps To Plug A Leaking Sales Funnel In The Right Place. How to measure where and when the sales funnel is leaking in order to take the right action.

12) Sales Performance versus Target

Measuring sales performance against target is a fundamental aspect of managing a sales team.

However, there is no Target tab in salesforce.

So how do you measure sales versus target or quota? Well, there are three ways to do this in salesforce.

  • Use a gauge on a dashboard.
  • Use the Forecasts tab.
  • Use the GSP target tracker solution.

It’s the first of those options we illustrate here.There are three ways to track sales performance against target in salesforce; the dashboard gauge is the quickest and easiest to implement.The dashboard gauge runs from a report that measures Closed Won opportunities. Manually calibrate the red, amber and green settings within the dashboard chart settings.

The dashboard gauge option is quick and easy to implement. The downside, compared to the other two options, is that it provides no insight on whether there is sufficient pipeline to meet the sales target next month or this quarter.

Separate gauges need to be used to track performance versus target for each individual salesperson and sales team.

The Forecasts Tab provides advanced functionality for target tracking, including the ability of managers to override their subordinates targets. It is, however, relatively complex to operate and salespeople and managers need significant training to use it effectively.

The GSP Target Tracker App provides easy-to-understand charts and additional metrics to measure sales versus target. It also automates the forecasting process and avoids the need for sales people to create or update manual sales forecasts. The App also allows sales managers and salespeople to determine whether there is sufficient pipeline to meet target for this month and future months.

Blog posts related to this salesforce dashboard chart:

3 Ways To Measure Sales Versus Target in Salesforce. Explains the options for measuring sales performance against target in salesforce – dashboard gauge, Forecasts tab and the Target Tracker.

Is Your Sales Funnel Big Enough To Make Your Revenue Target. Using a custom solution such as the Target Tracker to measure expected revenue against target.

Recorded Webinar | 12 Must-Have Salesforce Dashboard Charts

Join Gary Smith, CEO of The Gary Smith Partnership and Senior Consultant Dan Bailey. Gary and Dan demonstrate the 12 charts in action and the contribution each makes to performance improvement and pipeline management.