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What it Takes to Make Your Sales Pipeline Accurate & Predictive

  
  
  

Dave Kurlan is a top-rated speaker, best-selling author, sales thought leader and highly regarded sales development expert.

Yesterday, while speaking in DC, I asked my usual questions but the response to one of the questions left me scratching my head.  It wasn't a new question; as a matter of fact, I've been asking it for years.  And  as you can see below, I've been writing about the pipeline in various ways for years.

October 19, 2011  - Do Your Salespeople Really Understand Pipeline Requirements?
July 30, 2011 - Sales Confidence - How to Ask Any Tough Question Anytime
December 1, 2009 - Sales Systems and Processes - 8th of the 10 Kurlan Sales Management Functions
September 22, 2009 - Happy Ears or An Empty Sales Pipeline?
May 11, 2009 - Sales Pipeline - How to Make it Accurate and Predictive
November 10, 2008 - Improve Sales Performance with More Effective Pipeline Management
September 30, 2008   - Sales Pipeline Can Provide Sight for Blind Executives
August 12, 2008 - Filling the Sales Pipeline - Who's to Blame?
September 4, 2005 - More on the Pipeline
August 30, 2005 - Pay Attention to the Pipeline
May 1, 2005 - Be Still My Pipeline

The question I asked again yesterday was, "Do you have lumps of coal in your pipeline or gold bullions and do you have a way of finding out?"  No.  "How many of your forecasts from your pipeline were accurate in any of the last 4 quarters?"  None.

This wasn't none out of 10 or 20 people.  This was 0 out of 100+ Senior Executives!  And it's the same response I've always received where ever and whenever I have spoken to a non-client group.

You would think that with the acceptance of CRM, companies would be much further along in getting their pipelines accurate and predictive but they aren't.  Pipelines are still not being properly staged;  Criteria for each stage is not well established and salespeople aren't meeting the criteria; Salespeople are still doing a miserable job at qualifying - the stage that uncovers most of the criteria for the variables that impact accuracy and predictability:  How much will they spend, when will they spend it, and how sure are we that we will get it?  Until your salespeople consistently get accurate information on those three variables, you will not have a pipeline you can depend on.  

Unfortunately, the problems salespeople have with qualifying are symptoms of the problems they have earlier in the sales process.  They aren't doing a great job  establishing relationships so their prospects don't trust them enough to share.  They aren't doing a great job asking the kinds of questions that uncover compelling reasons to buy, so prospects don't have the urgency to move faster, nor do they have the incentive to provide answers to qualifying questions.

These issues disappear after 6-8 months in organizations where we provide training and coaching but in most organizations, this is an ongoing challenge.

This is something you can fix and if it was an accounting, operational, manufacturing, IT or an executive malfunction it would have already been fixed.  But sales seems to get a free pass, and mediocrity appears to still be acceptable.  How sad.

 

 

 

 

From Subject Received Size Categories Dave Kurlan Assessment Thu 9:14 PM 11 KB

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Posted by Dave Kurlan on Thu, Nov 10, 2011 @ 05:20 AM

COMMENTS

Really true. Many Executives bury their heads in the sand.usually this is to do with sales. There are always reason why business is not doing well and as long as they have an excuse they do not want/need to be told where problems are. 

posted on Thursday, November 10, 2011 at 6:10 AM by rose Nyarangi


You last comment here has be thinking. Sales does get a free pass. I am wondering why this is. Is it just that everyone else hates the thoughts of doing sales that they allow the sales team to suck because there is now way I am going to do cold calling? Or is it something else? Sales is the lifeblood of a business and if the sales team is weak, so to is the company. Over the years running a small business, I knew sales was the thing holding me back. Working with Rick & Kurlan, it is now the thing launching us forward. I am only sad it took us this long to find Baseline Selling. 
 
This brings up another question. Are these sales people just blind to their potential or is Kurlan just too hard to find? Why aren't they taking action to become better? 

posted on Thursday, November 10, 2011 at 8:02 AM by Dale Berkebile


@Rose - you nailed it. Excuse making and the other culprit - ego. The egos are too big to admit they have it wrong.

posted on Thursday, November 10, 2011 at 8:05 AM by Dave Kurlan


@Dale - Much of the problem is that the senior executives don't know what they don't know, and when they do know, it's more painful for them to admit they don't know, than to fix the problem. It's also more painful for them to fix the problem than leave it the way it is - resistance to change.

posted on Thursday, November 10, 2011 at 8:07 AM by Dave Kurlan


Back again to Sales being the only profession people can work in without any training: would you send an accountant or engineer or doctor out to work the way you do salespeople? 
 
The most common mistake I see are salespeople trying to convert 100% of prospects--everyone they talk to--into clients. It takes a long time, if ever, to sink in that many prospects are not a fit because they: 
 
* do not have sufficient, urgent need for what you provide 
 
* lack the budget for your solution 
 
* are not a personality fit (#1 reason, in my opinion--one bad customer can ruin your business by taking up time, energy and money!). 
 
Teaching salespeople how to qualify is probably the top action you can take to make your pipeline estimates more accurate; however, you have to get past the head trash of the individual salesperson first to stop them from trying to turn every prospect into a customer.

posted on Thursday, November 10, 2011 at 8:22 AM by Jason Kanigan


Dave, you made some very valid observations.  
 
In some cases, the pipelines are not accurate because of a 'culture' of pipeline indiscipline and cover up. Here the Sr Executives know ( before they get trapped in actually not knowing what they don't know ) that some of their favourite juniors routinely overstate.  
 
Also, some sales professionals understate their pipeline to avoid the incessant chase and undue-focus. 
 
To echo your thought, pipeline accuracy is a very sensitive tool that tests / reflects the maturity of the sales organisation.

posted on Thursday, November 10, 2011 at 9:59 PM by Gopal


The sales pipeline is now a convenient fiction. 
A sales appointment is no longer the start of the Buyer Journey. 
Buyers are, on average, 70% of the way through their sales process before they contact any vendor (Sirius). 
That means the majority of your potential sales aren't in your sales pipeline. 
And never will be, unless you pass the online audition.

posted on Friday, November 11, 2011 at 6:40 AM by Peter


@Peter - your comments are on point, but apply mostly to technology providers, and provide a convenient excuse for everyone else to trash the pipeline. Much of what you read, and most of what other people write is either self-serving or not applicable across all industries because they work in niches.

posted on Friday, November 11, 2011 at 6:53 AM by Dave Kurlan


@Gopal - thanks for adding your point of view. Nice distinctions between those who overstate and understate.

posted on Friday, November 11, 2011 at 6:57 AM by Dave Kurlan


@Jason - so salespeople still do that? Yes, the untrained ones do...

posted on Friday, November 11, 2011 at 6:58 AM by Dave Kurlan


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