Sales managers are human. They rely on monthly data, past experience, gut instinct and tribal wisdom to process information and make decisions. So, what’s the problem with their intuitive-based thinking? Well, sometimes it works and sometimes it doesn’t.
In Michael Lewis’ book Moneyball1, the character Billy Beane uses an analytical, evidence-based approach to assemble a competitive baseball team on a paltry budget. Beane’s statistical analysis demonstrates that on-base and slugging percentages are better indicators of offensive success than more historically valued qualities such as speed and contact. His observations flew in the face of conventional baseball wisdom. The most challenging part of Beane’s job was not overseeing his data analysis, it was convincing his scouts to trust analytics over intuition-based decision-making.
Why did Beane’s scouts fail to recognize the best talent? Three reasons: They overgeneralized from personal experience. They believed past performance predicted future performance. Finally, they brought personal bias into the equation. And that’s where Funnelocity℠ comes in.
Funnelocity℠ is a Salesforce-based management application that uses Artificial Intelligence to more accurately predict sales productivity. It takes intuitive-based thinking out of the equation so you can identify the quantitative metrics and qualitative behaviors that correlate to improved sales performance and increased revenue. By receiving individual scores and actionable details, you can begin to build a better sales organization one sales rep at a time.
Funnelocity℠ differs from traditional sales management tools that focus on quota-based stack rankings and funnel velocity. Funnelocity Scoring provides managers with continuous insights about individual rep execution, pinpointing areas that require attention and coaching. The Funnelocity Score is a prediction of future performance based upon the most important quantitative metric results. The quantitative metrics we score include the following:
- Average Length of Sales Cycle (measured continuously)
- Lead Conversion Rates to Qualified Funnel Opportunities (measured continuously)
- Average Win Size ($) (measured continuously)
- Number of Meetings (Monthly, Quarterly, YTD & 12 Month Rolling)
- Opportunities Added to Qualified Funnel (Monthly, Quarterly, YTD & 12 Month Rolling)
- Close Rate based upon $$ (Monthly, Quarterly, YTD & 12 Month Rolling)
- Close Rate based upon Opportunities (Monthly, Quarterly, YTD & 12 Month Rolling)
- Number of Wins (Monthly, Quarterly, YTD & 12 Month Rolling)
- Monthly Quota Performance
The above quantitative metrics are measured throughout each month for each individual member of your sales team and are rolled up for every level in your organizational structure. Our machine learning (AI) then identifies which quantitative metrics are most important to high levels of revenue performance. By doing so, the Funnelocity Score can begin to more accurately predict sales performance at every level in your sales organization. Funnelocity℠ also generates a Qualitative score for your specific selling environment and industry. By measuring your teams’ qualitative behaviors, we can identify positive or negative correlations to sales performance.
Funnelocity℠ validates the relationship of past revenue performance for every quantitative and qualitative metric, thus providing a more accurate prediction of future sales performance. It provides management with accurate recommendations on where coaching is required, because the data does not lie. The higher the Funnelocity Score, the higher likelihood a sales person or team will achieve their revenue goals on a consistent basis.
How do we formulate a Funnelocity Score? We use our Funnelocity application to automatically and continuously measure the quantitative metrics and qualitative skills that impact a sales professional’s ability to achieve their revenue objectives. Funnelocity℠ captures and scores all the variables in your CRM system that have the greatest impact on revenue performance. Over time, Funnelocity℠ scores each team member’s qualitative skills and performance metrics, pinpointing the specific areas that require attention and coaching.
How does this translate into improvement? Most sales metrics are based on things sales people must do during their daily selling activities, such as conducting customer meetings. Funnelocity℠ can give managers an instant measurement of sales performance without extensive analysis. Sales Managers can make immediate and effective changes with little to no wasted time and effort. If changes can be made to sales activities that reps conduct every day, then more time is freed up for coaching.
Incorporating Funnelocity℠ is like implementing “Moneyball” for your sales team. Our AI-based analytics will more accurately and effectively predict sales productivity. Funnelocity℠ can help your organization switch from a culture of intuition-based thinking to one of evidence-based decision-making. Predictive analytics is the science of better decision-making, and better decision-making is critical to business success.
As you hit the end of the quarter and reflect on how better to coach your team, why not consider incorporating a little “Moneyball” into your game plan? Funnelocity℠ may be just what you need to take your sales force’s performance into the big leagues.
- Michael Lewis, Moneyball: The Art of Winning an Unfair Game (W. W. Norton & Company, 2003).