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How does this story fit into the context of the last entry about the usefulness of the metaphor of a Sales Pipeline for our list of known opportunities? Further development of the Leaking Sales Funnel Concept will eventually lead us to an alternative way of forecasting. So that later you can appreciate the benefits of a Funnel Based Forecasting Process, I want to first make you aware of flaws in forecasting process that can be observed today in the field.
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My short answer is no. After having given you some hints that should help prevent you from suffering from “Sales Executive’s Tunnel View” when faced with too thin a pipeline, let us allow ourselves to be a bit more philosophical today. I promise that this discussion will provide the platform for more practical topics I plan to bring to you in subsequent entries.
In the last entry, we used the rule of thumb that only a fraction of the deals a Sales Executive and his/her team are currently working on will actually close. We have discovered that increasing the number of deals in a business with long sales cycles does not necessary produce the desired outcome of higher sales or even making the numbers. The rule of thumb can actually be expressed in a mathematical formula saying: The Sales at a point in the future from now (t + x) are equal to the sum of the
Today’s buyers expect more than generic outreach–they want relevant, personalized interactions that address their specific needs. For sales teams managing hundreds or thousands of prospects, however, delivering this level of personalization without automation is nearly impossible. The key is integrating AI in a way that enhances customer engagement rather than making it feel robotic.
I still have to meet the sales executive who is happy with her/his pipeline. When you ask them for the reason of their concern, the answer usually is: “it is not fat enough”. How do they know this? Obviously from experience. They know that only a fraction of the deals they and their people are currently working on will be won. The rule of thumb often heard in the High Tech Industry is that one out of three deals is usually won.
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