Sales Process Variables

Direct Variables

• Quantity of activities (#)
• Conversion Rate (%)
• Sale Amount ($)

# x % = (deals won) x $ = revenue
OR
#%$ = revenue






Indirect Variables

• Sales Cycle
• Between steps and as a whole process. Shortening the sales cycle will likely produce higher conversion rates.
• Also, shortening the sales cycle will speed up closes only if the sales process is being started fresh.
• Activity Time
• How long it takes to complete an activity. This will affect how many activities you can complete in a given amount of time.
• Position of high / low conversion rates in the Sales Process
• Bad conversion rates should be moved toward the beginning of the process. This will free up time to complete more activities, as the salesperson is not wasting time pushing deals deep into the process which eventually are lost. Ideally, all lost deals are lost at the first step of the process.
• (Conversely, high conversion rates should be pushed to the end of the process.)
• Frequency
• It may be better to spread out certain activities, or to do them all at once, e.g. cold calls every day vs. only on Mondays and Tuesdays

Add: characteristics of a close

• (How client was first found)

• Number of contacts from open to close
• Sales cycle time (between steps and as a whole)
• Activity time