The form of the Sales Pipeline tells a story – The Water Glass

One of the easiest analysis is to assess the form of the Sales Pipeline. Easy but very informative. The form can show the current commercial capability and performance of that sales person. Or on an aggregated level – the commercial capability and performance of that company.

The Water Class

The form of the pipeline is wide at the top and in the middle but small(er) in the final stage. In commercial terms this means two things:

1. The form of the pipeline is wide at the top and in the middle but small(er) in the final stage. In commercial terms this means two things:

The good news is that the company is able to create opportunities and proposals and convert them into Proof of Concepts (PoCs). Most of the bigger customers tend to buy products and services after a successful Proof of Concept or pilot. Buyers and users feel more comfortable experiencing the application or device working within their own infrastructure and using their own data or samples instead of just a demo.

How to manage your Proof of Concepts and pilots effectively?

Foremost, it is crucial to have commitment for buying your product and/or service once the PoC is successful. In that sense, a PoC is not a delayed decision. So what do you have to agree upon at least are:

• The evaluation criteria for measuring success.
• The planning of the PoC
• The kick-off and final presentation of the PoC

It is important to include decision makers in the final presentation – preferably also in the kick off session – to have a buy-in. Ideally, you have also agreed in this stage on the terms and conditions of the deal.

2. But the deals are not closed…

There are several reasons for this form of the sales pipeline:

• The customer is not committed to make a decision.
• The sales professional has lost control over the process.
• The deal was lost to the competition.

Sales professionals with this profile typically:

• Are great in converting leads into opportunities and proposals.
• Score lower on process management and controlling the prospect.
• Score lower on deal closing and have not asked for commitment before starting the PoC.

Companies with this profile have a high score on business development and lead generation. But have a lower score on sales effectiveness and/or probably have less competitive advantages or are not able to show this sufficiently.