Sales Communication

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Sales pipeline design

Sales Pipeline Design

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Campaign Design

What is a Pipeline & Why does it Matter? 

Every sales process is like a pipeline… Some are long and skinny (take a long time to close, and have a small number of contacts pass through the pipe), and some are short and fat (require a lot of new leads, but have a short turn around between connection and sale). Each service and product has a pipeline that is unique. A sales person begins prospecting by stuffing mud (activity) in one end of that pipe, and eventually it starts coming out the other side. A pipeline is not adjustable; it is solid and calculable. It doesn’t change. Once you’ve designed your pipeline; you know… if the activity is stuffed in the front side, eventually money will start coming out the other. 

Many times, as sales people see the mud exiting the pipe (make sales and bring in money), they quit stuffing the front – because they think they have completed all the hard work they need to do. The pipe dries up, mud quits being pushed out, and you don’t understand why your system quit working. So you start going back to the beginning and doing the hard work, but there’s a long dry spell before anything comes out. The trick to sales is to keeping pushing mud (sales activity) in one side while it flows out the other side (sales income). When sales activity stops, your pipeline dries up and you get hungry.

Rule of Thumb: 1 in 60

This rule states that for every 1 degree off heading, a ship will be 1 mile off course for every 60 miles it travels, 2 miles off at 120, 4 at 240, etc. 

Example of the 1 in 60 rule (as it pertains to sailing to Hawaii):

If you’re sailing from L.A. to Hawaii (4105km/2551 mi), and you get 2 degrees off track from the onset of the trip (which is 1/3 of 1 minute on a clock), you would be over 100km off course once you traveled the correct distance… which is problematic because after some cool math (involving a cosine value that is approximately 0.0454 degrees) … you will miss your target by over 60 miles. 

Computer Work: Have scripts for email automation: We all have times that our behavioral state is not in line with the person we want to be. There are a number of situations that controlling your response is as simple as writing a script, and using it. 

  • Where to save pre-written email templates: If your inbox has “templates” or “Canned Responses” – create one. If it doesn’t, create a document as “email scripts” that are titled by when you use it, and includes the text of the email correspondence. Be willing to include a [PLACEHOLDER] for custom words or phrases that will be edited each time that email template is used.

 Go through the most common responses you give and write them down. As a sales person you’re an actor, but not all of your lines require that you deliver them in person. Make your scripts as enjoyable as possible and allow your state to be controlled by what you have predetermined when you’re in a good mood – rather than speaking as a victim of circumstance. 

Simplify your steps to stay out of your own way

Sample Pipeline Assessments (from scripts section)

ABC Offices Current Pipeline:

  1. Receive phone call lead looking for new office space
  2. Call back within two days & ask to meet or leave message
  3. When they call back ask if they want to come by office
  4. Once they come by the office, show them around 
  5. Send them home with brochure and set follow up
  6. Call back in a week & ask if they are interested
  7. Keep on mailing list if “no” response
  8. Set closing appointment 
  9. Show offices and present paperwork
  10. If no sale, set for follow up in a month
  11. Follow up in 6 months to see if they’re ready to move yet

XZY Barbers Current Pipeline:

  1. Run ads in men’s magazines and online directories
  2. When they call, record the name, phone and time they want to have an appointment
  3. Give them a business card with their barber’s name and book next appointment before leaving
  4. Ask for Referral we could send a care package to
  5. Offer discount if they give a review before the next service
  6. Repeat when they call again for another shave or haircut 

John Doe Current Pipeline:

  1. Get contact information for a lead from an event or referral
  2. Call or email the lead to set meeting in coffee shop
  3. Have an introductory meeting to get to know each other
  4. Do research on what product fits the lead
  5. Call or email within 1 week to pitch the product/service
  6. If they’re responsive, set a proposal appointment 
  7. Prepare for the proposal meeting by printing materials and paperwork for lead (to leave with them) 
  8. Call 24 hours in advance to confirm the appointment
  9. Proposal Meeting at quieter location, preferably with a computer or projector available (conference room/office)
  10. Ask for the sale after giving the proposal or set a next step
  11. Call 24 hours in advance to confirm the appointment
  12. Call in 1 week if no response to set closing appointment
  13. Call 24 hours in advance to confirm the appointment
  14. Print paperwork for closing appointment
  15. Build rapport; ask if they have questions, and close
  16. If no, thank them for their time and set follow up in 6 mo.’s
  1. Call in 24 hours to thank them & gauge why not interested
  2. Place on mailing list

Pipeline Steps

In any pipeline, there are times you need to assess whether you want this prospect to be a client

  • If they are high maintenance before they sign up with you, what do you think they are going to be after?
  • The stars in this pipeline represent the times that you should assess whether you want them to be a client or not
    • If not, refer them to someone else 
    • Let them know you don’t think there’s a fit for you to do business OR
    • Price it high enough that you can outsource the work and still make it worth your while

This pipeline should be coupled with a CRM that tracks each lead that is found

Pipeline Design Template ***

Pipeline Step:__________________

This step is a success for me when: _______________________

They will benefit from this appointment when: _____________

Before the next appointment: 

  • I am committing that I will: _________________________
  • I am asking them to: _______________________________  

If they cancel or don’t show, my follow up:                       

Scripts & Materials to Write: _____________________________

Immediate response: ______________________________            

After ___ days, I’ll ________________________ (action)   

Who else needs to be involved: ______________________

After ___ days, I’ll _____________________      

My confirmation tasks: _________________

After ___ days, I’ll _____________________      

Days I need to Prep: _____________________

Quota Layout 

Assess your current quota system: 

The word “Quota” has a history based on sales managers hounding staff to do the mundane tasks that the managers receive bonuses from. Quotas; however, are a way to complete the tasks that push mud in the front of the pipeline; in order to get a consistent flow of income out the back of the pipeline. 

Questions when creating a quota (combined with Step 1):

  • What is your average income on a sale?
  • How much do you need to make on a monthly basis?
  • How many average sales needed, in order to create your monthly income necessary to cover your annual lifestyle? 
  • Break it down into weekly quotas so you know, “This week, I need to make five in-person visits,” or, “This week I need to send 35 emails or 15 direct messages on social network in order to make the income that my lifestyle demands. “

Create a quota. Stuff the mud in the front and get paid. 

Sales Team Quota breakdown numbers—Long pipeline:

Every pipeline point of contact needs to be included

7 RATIO NUMBERS FROM PIPELINE TO QUOTA: 

(A) Need: __3_____ closing appointments to get a sale

(B) Need: __6____ qualifying appointment to get a closing appointment

(C) Need: __3____ introductions to get a qualifying appointment

(D) Need: __2___ leads to get an introduction appointment

(E) We typically make $2,500     per sale

(F) Desired monthly income per sales rep: $7,500     

(G) Number of sales reps for which leads are provided: __18__ 

LEADS NEEDED PER REP. CALCULATIONS: 

  • (A): _3_ x (B) __6__ = (H) Qualifying appointments per mo.: __18__ 
  • (H):__18___ x (C)__3____ = (I) Introductions per mo.: ___54__
  • (I): _54__ x (D):_2_ = (J) Number of leads to get a sale: _108_
  • (F): ___$7,500____ / (E): ___$2,500__ = (K) Sales quota/mo:___3___
  • (J): ____108____ x (K): __3__= (L) Leads needed per month: ___324_

TEAM LEADS CALCULATION (WEEKLY): 

  • (G): _18__ x (L): __324_= (M) Team leads per month: __5,832_
  • (M): _5,832_ / 4.33 (weeks/mo in 13 wk quarter) = _1,347/wk.
  • Question is: does your marketing provide the leads you are needing to hit your outcomes/quotas?

If no, there’s two options: Increase your leads, or decrease the pipeline ratios of your sales team.

Quota WorkSheet

Schedule Activity

Expectations; We over assume what we can get done in one year, and under estimate what we can get done in five years. 

Define: Buying Cycle, Pipeline, and Pitch (repeated for convenience)

  • Pitch or Ask: Question that (when answered) closes the negotiation. 
  • Buying Cycle: The cycle of; marketing to sale to referral (that almost all business communication follows).
    • This is the normal cycle of business. Recognize; the client only focuses on this buying cycle once in a while (so continual hand holding is likely needed and productive).
  • Pipeline: The process of tracking one company or individual through the buying cycle; ensuring that no one is lost or allowed to continue too far.

Make Preparation, Next Step and Reminder for each Pipeline Segment: 

Every point of contact in the pipeline has associated preparation, next step and reminder tasks. Even if the next step in the pipeline is a quick email, there is a: preparation; a mental review of the last conversation (which on a quick email is written as a personal comment in the email), next step; instructions for the task you will complete (also in the quick email for clear expectations) when the next reminder shows up in your CRM on the scheduled day/time… if you enter it in your CRM. 

A Reschedule Process ensures that you know what to do if your next step is cancelled vs. a no show. It is also a vital piece of a pipeline to know which steps (in the pipeline) you run into a, “I’m not going to do business with them” or Kill-the-Deal checkpoint.

A sales mentor I had when I first started selling used the phrase 

“If it’s a loser, lose early.” 

Sales Tip: Design Your Day 

Proper assessment of who you are and the conversations you will (likely) have, can allow you to arrange the plain, mundane tasks that you are required to do (and are capable of auto-pilot completion) … to be scheduled during the time of day that you are not most productive. If you hate data entry, do it after lunch when you’re not overly excited about working (and need something to keep you moving forward). It keeps you awake & busy.

Story: I personally am not best in the morning. I don’t easily get back into my body once I’ve been sleeping, and that has (in the past) created a bad state of mind. I avoid disciplining my daughters in the mornings due to my tendency to overreact (not hear correctly) … In some way engage with more passion and energy than is right. 

In the same way, use the times of day you’re most productive for the tasks that require the most focus (and the best parts of you).

Every job has parts that you love and… don’t love. Arrange them so you are most productive and enjoy the maximum portion. Design your day for happiness in success.

Pipeline Reschedule guide

It takes as much time to click “delete” as it does to click the date for call back. A lead is never deleted, unless the lead requests it, Even if you have them on a “call once a year” reminder system… contact once a year It is easiest if you set up your database follow ups – to fit the pipeline structure you set up. If the call back schedule in your CRM is based on the categories listed below, you will only have to change the status of the lead, next step, and call back date to be able to keep track of every client you want to keep in the pipeline. I also suggest a date stamped note for each step.

This is only a sample from which you can have a framework.