Hitting your quota number at the end of the quarter is all about how you manage your pipeline. This post is to give you an understanding of how KPIs play into pipeline management.
Know Thy Territory
First, understand your territory and the quality of your accounts. Start by putting your accounts into three categories: A, B and C. A’s are prime accounts, whereas C accounts are not likely to buy/engage. Account scoring is a topic we will cover in another post. You also might be interested in our “Customer Scoring” course once it is released.
Analytics of Pipeline Management
Beyond knowing your quota number and who is in your territory, there are a few key performance indicators (KPIs) you need to track to help make more sense of your quota number and your pipeline. These include individual sales rep metrics include:
- Average Deal Size
- Average Sales Cycle (SQL to Close – depends on playbook)
- Lead Conversion Rate
- Average Close Rate
Using these four KPIs and doing your own calculations, you can break down your quota number into something that makes a lot more sense. “Do the math” as we say and your quota number is a template for opportunities where you plug in your accounts. The math tells you how many deals you need.
As a sales analyst, it was interesting to see which reps looked stressed when they saw their quota for the first time versus the reps who were calm, cool and collected.
We are not going to walk you through the actual math in this post (I know, sorry, but this post is teaser), but we will give you this quick tip:
- Saalun Quick Tip: About half of your quota number should already be nearing close in your pipeline as you start the quarter.
Knowing the who’s who of your territory and doing a little math behind your number makes pipeline management a breeze. Of course you have to build relationships and sell, but knowing the math is a huge step ahead.