The essentials of deals and funnel management
Tracking deal progress and sales funnel health
A deal or a sales opportunity is logged against an account. Your sales funnel consists of several deals, all scheduled to “close” in the next several days or months. Your funnel conversion leads to your being able to meet your sales target for the year.
A deal can be directly logged or converted from a lead. Each deal can have many stages of progression as you engage more with the client contacts and gain deeper understanding and confidence in your position. The stages are Sales lead, Prospect, Warm Deal, Hot Deal.
We use a renowned and time tested framework called B.A.N.T to classify the deals to help you prioritize your follow up.
Glossary of sales deal related terms
Budget: What is our estimate of the customer budget to pay for our product or service.
Deal value: What is the expected size of the order, should we win. In the absence of a formal quotation sent to customer, the budget value is the deal value.
Quote: A formal quotation sent to the customer covering products and services. A quote may or may not relate to a deal. If it does, then the value of the quote is updated as the value of the deal.
Decision makers: These are the client contacts who will influence the purchase decisions. They all have different roles.
Forecast date: The calendar date by which you expect the deal to be closed.
Our chance: Percentage chance of win. This is what the account owner / sales executive estimates.
Budget stage: Customer may be planning to apply for a budget, has already applied or has received a budget approval. Each of these are important stages of deal progression.
Solution presented: Have you shared your solution with the customer? What does he think of your solution? Does he think you are better, worse or same as competition?
Deal status: By default the deal status is Open. Basically the deal is active. A closed deal has one of many status:
Won, Lost, Cancelled/ Dropped
When you change the status from Open to any “Closed” status, please select a reason- why you won or lost.
Decision maker roles
Most important: The client contact who can say no to the purchase. The person who will listen to all inputs but can decide on his own.
Evaluator: The client contact who will evaluate your product on its merits- both technical and commercial.
Important user: The client contact who will be using your product most frequently. May already have experience using similar product.
Commercial: This person is typically the person who will negotiate terms and conditions. Might even release the PO.
Sales deal stages
Sales lead: The deal is at a stage where we have very little information about it to forecast anything. Typically we know name of one decision maker, the account name (of course) and the product category it relates to. We have some idea of the budget too.
Prospect: The deal is now “real”- to the extent that customer has been contacted, product vs need fit has been established. Budget has been established and perhaps the customer has initiated internal budgeting process.
Warm deal: The deal is further advanced in the funnel. Perhaps customer has received budget approval, we have established our product as a good solution to his needs, and we are forecasting the deal to close in the next couple of months.
Hot Deal: All the warm deal conditions have been met. In addition, our quote is within his budget and the confidence is high that it will close in the next few days or weeks.