Mini-Training: How to build a sales pipeline of opportunities.

👋Hello friend, Ren here! Welcome to my newsletter, where I share sales mindsets, strategies, tools and processes for winning High-Value Deals.

Welcome back!

A few days ago, I posted this on LinkedIn and received a question I believe is worth exploring because everyone in sales and business has struggled with this at one point or another.

Below is the background image referred to⬇️

I love this question because it relates to having a strong sales strategy, which is a crucial foundation for creating sales opportunities and winning new clients.

When we have a strategy, process and implementing the right behaviours, the magic starts happening. Sales is easy and fun!

Let's dive in!

The Sales Strategy comprises five essential components.

1. Goals & Objectives

2. Ideal Client Profile

3. Competitive Strategy

4. Unique Value Proposition

5. Sales Materials

This is a big topic, Let’s focus on Goals & Objectives.

Before we discuss goals and objectives, identify where your solution fits in the image below.

Understanding your type of B2B Sales Model will allow you to have a realistic goal.

This is crucial in understanding your business’s position, growth and how fast you can move with prospective clients.

Clearly understanding your specific B2B Sales Model will allow you to set realistic and achievable goals and effectively strategise and plan for future growth, considering the unique challenges and opportunities your business might face.

Expressed vs. Latent Need: Expressed Needs refer to customers who are aware of their problems and actively seek solutions. Latent Needs relates to customers who are unaware of their issues and challenges. There is a need to educate your prospects about the problem before presenting your solution.

Short vs. Long Sales Cycle: Short Sales Cycles involve less decision-making time and customer interactions. The sales funnel, in this case, focuses on volume to move leads quickly. Long Sales Cycles, conversely, involve complex products requiring more education and collaboration time. The focus is on building relationship, aiming for long-term commitments.

Short vs Long Relationship: Short Relationship models aim for one-time sales, ending the sales funnel at purchase. Long Relationship models aim to build ongoing relationships, leading to repeat business and referrals. You can cross-sell and upsell to customers with long-term relationships.

Single vs. Multiple Decision Maker: Single Decision Maker sales involve convincing one person of the product’s value. The sales funnel is straightforward in this case. Multiple Decision Maker sales, on the other hand, require agreement from various stakeholders. The sales funnel is more complex in this case, addressing each decision maker’s needs.

Each model impacts lead generation, nurturing strategies, and sales funnel design.

Where does your solution sit in the different types of B2B Sales?

Goals and Objectives

Now that you’ve identified your B2B sales model, it’s time to plan your goals and objectives.

Ask yourself:

• What is your sales revenue goal for this year?

• How many clients do you want to acquire?

• What strategies will you employ to achieve these goals?

For example, let’s say your revenue goal is 1 million. Why not?😝 It’s a nice round number and easy to calculate. The next step is to figure out how to reach that goal.

Here’s a breakdown of the thought process:

• Revenue Target: If your revenue target for the year is $1 million, this is the total revenue you need to generate from your sales efforts.

• Average client value: If your average client brings in around $100K in revenue, you can see how valuable each new client is to your business.

• Client acquisition: To reach your $1 million target, you must win 10 clients (1M divided by 100K) and acquire this number of new clients within the year.

• Conversion rate: If your conversion rate is 1 in every 5 prospects, meaning you successfully turn 1 out of 5 potential clients into actual clients, you need a larger pool of prospects. In this case, you would need 25 prospects per quarter (5 prospects for each of the 5 clients you need to win per quarter to reach your goal of 20 clients for the year).

• Upselling and cross-selling: Don’t forget the potential for additional sales from your existing clients. If you can upsell or cross-sell to 25% of your current clients, this can significantly boost your revenue and help you reach your quota.

This process helps you break down your overall sales goal into more manageable targets and gives you a clear idea of what you need to achieve at each stage of the sales process.

Here is an example of a 📈 Forecasting Template on Google Sheets​

Lag Measures vs Lead Measures

When you create your goals, be aware of what you can and cannot control.

In the The 4 Disciplines of Execution, lag measures are explained as the outcomes you are ultimately trying to improve (e.g. sales revenue). Lead measures are the new behaviours that will drive your success toward your eventual goal (e.g., researching your ICP, attending networking events, connecting with your ICP, sharing a case study with your ICP, and collecting data on client outcomes).

Cal Newport, the author of Deep Work, emphasised that focusing on lead measures provides a concrete behaviour you can control. If your lag measure is to close an account in 6 months, your lead measure is the amount of work you dedicate to the actions that impact this goal.

Revenue targets, while important, are hard to control.

What are the key steps to getting closer?

You need to step back and think through your process.

What activities can you implement that will move the opportunities in the right direction?

“Lead Measures” refers to the proactive activities directly influencing achieving your sales goals. Here are three key lead measures:

1. Daily and Weekly Prospect Calls: This measure involves determining the number of prospects you need to reach out to daily and weekly. This activity is fundamental in keeping the sales process moving. The higher the number of calls made, the higher the chances of finding potential clients who may be interested in your product or service.

2. Conversion of Initial Conversations to Sales: This measure refers to the rate at which initial discussions with prospects turn into successful sales. It involves tracking the number of sales made per week or month originating from initial conversations. It’s crucial to monitor and strive for higher conversion rates, as they directly impact your sales figures.

3. Earning Client Trust Through Touchpoints: According to Forrester’s latest report, it takes 59% more interactions to establish trust with B2B buyers. How many times do you need to communicate with your potential clients before trust happens? This measure focuses on building and maintaining relationships. It involves identifying the number of interactions or “touch points” required to earn a client’s trust. These interactions could include follow-up calls, emails, meetings, or any form of engagement that provides value to the client.

💡 Exercise: Define Your Lead Measures

Follow these steps to define your lead measures:

1. Consider your Lead Measures: Spend 5 minutes considering what actions or activities directly influence your sales outcomes.

2. Define Your Lead Measures: Now choose 2-3 clear and time bound activities that will help you achieve your sales target.

By completing this exercise, your sales strategy will be action-oriented and focused on the activities leading to a strong pipeline.

Systems and Processes

You do not rise to the level of your goals. You fall to the level of your systems. - James Clear.

How will you manage your sales pipeline?

It can be Simple Excel or a CRM.

The important thing is to manage your sales process from initiation to closing the deal. While there are fancy tools out there, don’t get lost. Start with the basics. Even large corporates don’t do a great job with their CRM, so don’t worry about the tool.

Make the tool work for you.

Here are some strategies to help you

1. Document your prospecting process. Documenting this process ensures consistency and allows you to review and refine your method. By tracking which tactics are successful and which are not, you can continuously improve your prospecting process, increasing your chances of finding and connecting with potential customers.

2. Block out time for business development. Commit to this by scheduling an appointment with yourself in your calendar. Protect this time. For example,Monday from 9 to 11 a.m. could be dedicated to developing your list of identified target accounts, and on Wednesday, you could call and email.

3. Review your progress. Conduct a weekly sales review with yourself or your team to strategise how to advance your sales opportunities. Although it may seem obvious, a few organisations implement this practice correctly.

"When you have a clear strategy, a well-defined process, and you implement the right behaviours, success is inevitable.

When you consistently execute your plan, you will gradually build a sales funnel, review your process, pivot as necessary, continue to execute, and ultimately win clients.

This is when the magic starts happening, and you'll see your efforts begin to pay off. 💫

Keep going, my friend! I'm rooting for you!"

Ren💜

PS:

Send me your questions, would love to hear from you!

Here are additional resources:

061:The WHY and HOW of Sales Forecasting📈​

073:To find your Ideal Client, focus on the Problems you are Solving.