Company

Value Proposition

There are very few applications in business that have such dramatic impact on Value Proposition than that offered by better pipeline management. Consider the following case study to understand the leverage potential in pipeline management.

Case Study :

  • Multi-step sales process; complex sale
  • Average deal size = $50,000
  • 100 sales reps
  • 10 Sales managers
  • Average Quota per rep: $1,000,000
  • Company Revenue at quota: $100,000,000

Usually within a sales organization, there are top producing reps, average producing reps, and below average reps. For purposes of the case study, assume the following:

A reps: 20% of the reps are meeting quota or better (20)

B reps: 50% of the reps are between 60% and 100% of quota (50)

C reps: 30% of the reps are below 60% of quota (30)

By utilizing better Pipeline Management Principles, and hence, more accurate forecasts, we assume that most of the improvement in revenue generating capacity will come from the bottom two categories. The top producing reps are likely to exceed quota regardless of what system is put into place. Therefore, even by limiting the benefits to the lower producing sales reps, the revenue enhancement for relatively small improvements in pipeline management are very attractive.

% Improvement in
Pipeline Management
(B and C reps)

Revenue Enhancement

3%

$1.4M

5%

$2.5M

10%

$4.9M

20%

$9.8M

 



Copyright Topline Systems, 2010 Company Products Services Solution Platform Contact Us