A New Leader to Follow on LinkedIn - Jyoti Bansal on his Enterprise Sales Hack: The Art of Deal Flow
Updated: May 10
"Enterprise sales hack: The art of deal flow👇
For an organization to maximize revenue potential you need to ensure that your sales reps have enough deals to work on.
But how do you do that?
This is where the Demand Generation Model comes in, and it has 3 primary variables:
1) Average deal size. What's the typical dollar amount of a closed deal?
2) Deal close rate. If you have 100 qualified sales opportunities, how many of them do you successfully close? Typically this is between 25-40% for most companies.
3) Average sales cycle. How long does it normally take for a new, qualified sales opportunity to close?
Once you know these three numbers, you work backward from your sales goal.
Say you have to do $1M of new business sales in a quarter and your average deal size is $100K. You need to close ten deals. To do that, you need 3-4x that number of qualified opportunities based on your opportunity conversion rate. And, if your sales cycle is four months, you need these 30-40 opportunities in your pipeline a few months before the quarter starts.
Ensuring that your sales team has the right number of qualified sales opportunities on time is key to mastering this concept."