Sales & Marketing Management - November/December 2007 - (Page 31)

pipeline sales =lifeline By Maureen Hrehocik e Why does such a critical business tool get so little TLC at some companies? ven though a company’s sales pipeline is its profit lifeline, many firms lack a formal mechanism for tracking leads through it, proper management of it or appropriate talent working it, according to David Stein, CEO of ESResearch Group in West Tisbury, Mass. “Pipeline management is a critical issue,” Stein says. “Few companies have it figured out.” For those that do, they will reap a myriad of benefits, including better forecasting the length of the sales cycle. Mary P. Donato, president of Applied Principles, LLC, agrees. “You need a customer relationship management system,” she says, “some way to measure content, even if it’s just an Excel spreadsheet.” Equally important is to have rigorous decision criteria for what goes into the pipeline. “It is amazing how little the pipeline is appreciated, when it is so important,” says Steve McNally, managing partner of market- ing and distribution for the TAS Group in Kirkland, Wash. “A company’s pipeline is the leading indicator of how it will perform. A forecast is a lagging indicator in which you deal with an outcome. With an effective pipeline, you tactically affect outcomes.” McNally says that to create an effective pipeline, everyone in the organization (including sales, marketing and operations) must have an awareness and understanding of the company’s sales process. “Something like ‘verbal order’ has to mean the same to everyone in the organization,” he says. By having everyone understand the sales process, McNally says a company can avoid finger-pointing if a lead falls through. “If there is a commonly understood sales process, everyone can talk about new leads in the context of that sales process,” McNally tells Sales & Marketing Management. “It makes looking into the future significantly clearer. It also tells the marketing department precisely where they need to focus.” The second major component of a successful pipeline is having a chief revenue officer (or equivalent individual) understand the sales cycle for products and services in a time sense, and be able to “overlay” quotas against time. “Everything done should be quantifiable,” McNally says. “The CRO can see issues before they manifest themselves. A good pipeline means no surprises. A good pipeline allows you to create correct expectations. Another benefit is, over time, you will see trend lines developing.” McNally emphasizes that the “swing piece” in a good NOVEMBER/DECEMBER 2007 www.salesandmarketingmanagement.com getty images SALES &MARKETING MANAGEMENT 31 http://www.salesandmarketingmanagement.com

Table of Contents Feed for the Digital Edition of Sales & Marketing Management - November/December 2007

Sales & Marketing Management - November/December 2007 Contents Editor’s Letter Management Strategies What “Tell Me More,” Really Means Sales Strategy Marketing Management Motivation/Incentives Training Technology The Brains Behind the Brawn Are You a Bad Manager? Pipeline = Lifeline Feeling the Squeeze; The Foray Mobile Workmate; Seeking the Sights of Pittsburgh; Testing the Social Media Waters. Gadgets & Gear Books That Improve Strategic Thinking, People Skills and Sales Work/Life Take-Aways

Sales & Marketing Management - November/December 2007

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