Is your business experiencing wild swings in revenue?
This may surprise you, but relaying too much emphasis on closing business for your sales team is actually counterproductive to increasing your revenues.
What?! Let me explain.
Every time a sales rep closes a sale, they should be adding three to four more leads to their pipeline. When your team is focusing too much on closing business it detracts focus from gaining new leads. Before long, you will have no new leads to close business with, and this is what causes swings in revenue or sales whiplash…as I like to call it! Don’t worry, sales leaders, there are ways to avoid this.
Are you wondering how you can attain consistent revenue?
The secret lies in knowing that there must be a balance of activity in each stage of the pipeline. Make sure your team is actively balancing the focus between opening, qualifying and closing leads each week. It’s your job as a leader to monitor, measure and coach your sales team during each stage of the pipeline…not just closing.
You want to get into the habit of talking to your team consistently about generating leads. It’s very easy to get too attracted to the idea of closing a sale and in turn lose focus on other parts of the pipeline. Make it an equal emphasis for your team to qualify and generate lead attraction, they should be encouraged to participate in prospecting activities very frequently.
[bctt tweet=”Your team will only treat each stage of the pipeline with equal importance if you make it a priority.” username=”EngageColleen”]
The beginning of your pipeline (i.e your prospecting) presents a direct indicator to whether or not you’re on track to reaching your future revenue goals. If you don’t simultaneously foster the top of the pipeline while closing business, you will find yourself struggling to attain and close new business.
Actively focusing on all parts of the sales pipeline also makes it easier to predict sales results. It’s also no coincidence that my very best clients all make it a priority to pay close attention to all stages of the pipeline.
I’m not saying don’t celebrate your closing accomplishments, it’s just important to celebrate quickly. Never get so wrapped up with the allure of closing a sale that you forget to prospect. A balanced and consistent approach to your pipeline will ensure that you’re setting up for tomorrow’s success.
How do you actively ensure that all stages of your pipeline are being focused on?
One response to “Is Your Revenue Hurting Because of This?”
as the old saying goes, “Never wait till the well is empty before you start digging”.
The other thing I always paid attention to in my B2B sales career was looking after my existing customers FIRST. It took time to win them over in the first place and keeping them was far easier than winning them back.
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