Do Your Sales People Know the Probability of Getting the Order?

The last newsletter discussed your sales people knowing the status of their opportunity so they can manage their opportunities and close enough sales to meet their quota.

A key component to the management process is the Opportunity Log that lists each Opportunity with a realistic estimated close date, the status of the opportunity within the customers system and the probability that you will get the order when it is placed.

Having this Opportunity Log and keeping it updated daily will increase the sales persons efficiency and close rate. This month, let’s look at the third component of managing the Opportunity Log, knowing the probability that they will get the order when it is placed for each opportunity.

Unlike the status that we discussed last month that is customer based, the probability of getting the order when it is placed is based on your company. We are talking about the probability that you and not your competitors will get the order when it is placed. This means that your sales and support teams are responsible for and in control of the probability of getting the order.

Keeping this simple is best and defining a scale consisting of 10%, 30% 60% and 90% probabilities will allow you to rate each opportunity in your Opportunity Log in your CRM. Your sales team is responsible for defining and managing the probability and if they do not know they can ask the customer where they stand when quoting and during the follow-up process.

Combining the probability with the stage that we discussed last month provides a powerful tool for managing the opportunities in the Opportunity Log and will provide an excellent forecasting tool. The opportunity will have an estimated close date, be in one of four stages:

• A lead (A)
• A quote (B)
• A quote that has been submitted for approval (C)
• An approved quote and purchase is eminent (D). Now add the probability that you will get the order and you know where to spend your time and the expected outcome.

Adding the probability that you will receive the order finalizes the management process puzzle.

For example, if you have an opportunity at Stage D (approved and purchase is eminent) and at 90% probability with an estimated close date of next week you can count on that order when it is placed. You need to follow up to make sure things do not change and be there to get the order.

Another example, if you have an opportunity that is at Stage B (quoted) and a 10% probability with an estimated close date of a year away, you do not need to invest much time in this opportunity currently. What you can do over the next year is work to increase the probability that you will get the order as the quote makes its way thorough your customers system.

The goal is the be the “vendor of choice” (probability of 90%) so you know the customer will buy from you. When you are not the “vendor of choice” and you want the business, you can invest the time and effort increasing the probability until you are.

The Opportunity Log should be the best forecasting tool the company has and with the estimated close date, the status and probability updated a forecast can easily be compiled. This helps management with future plans of all types from financial to personnel to resources. From the sales persons personal standpoint, knowing the probability will help them plan and manage their time. This can help them be in the right place at the right time and many other things including making updates to their plans and quotes when needed.

“A Habit” is not work, but just a thing that is done every day and knowing and managing the probability of every Opportunity is critical to your success in sales and can easily become a Habit.

TIME MANAGEMENT. For Top Performers every task is planned and focused on the goals that earn the results. Top Performers plan and then engage. They act on their plans, they work hard and they get results.

Coaching these skills is a critical part of what we do. We are here to help you develop and implement your Strategic Plan and coach and develop the skills to implement the plan successfully.

We are having great success coaching and implementing these methods and skills and our clients love it!