Know and Analyse the measurements, AS-IS-Pipe and GAP

The Seven Steps of Pipeline Management #2-4:

Know your measurements, AS-IS-Pipe and GAP

A sales pipeline is a summary of all sales opportunities that a sales person, business unit or company is pursuing with the aim of closing deals. A more detailed definition of the pipeline and a classification of its meaning can be found in this blog.

You can also read here which information you list in the pipeline and how you can identify the relevant opportunities based on the probability of success.

So now you know the basics and understand that pipeline management is important for your business. In the current blog series, we look at implementation in seven concrete steps.

The first step concerns the target setting. Carrying out all efforts in a goal-oriented manner and having a plan from the beginning increases efficiency enormously and also enables you to better self-reflect and learn more. Find out more about your sales target here.

The next step is about key figures and measurements. This is where you need to become aware of: With which goals and measurements do you pursue which tactics? What corresponds to your corporate principle?

You can either target a specific number of sales, focus on your revenue or prioritize a combination of both metrics. A fourth option means combining sales and revenues in combination with gross profit or gross margin.

The following table shows which tactic you pursue with which key figures. There are differences and sometimes similarities in the corporate principles, the time to achieve the target, the general approach and also the focus of the pipe.

Thus, the decision of the right KPI is also relevant for your pipeline management.

The third step is dedicated to the analysis of the AS-IS pipe. Your measurements also play a role here, so the AS-IS-Pipe is based on them.

The third step is dedicated to the analysis of the AS-IS pipe. Your measurements also play a role here, so the AS-IS-Pipe is based on them.

As you can see in the following graphic, your sales target is the meter value. Already booked orders and deals count as well as the backlog and the weighted pipe. You have to fulfill the backlog before a certain period of time.

If you add up these values, the distance to the sales target remains: the so-called GAP. This is also where the fourth step of pipeline management comes in: Know your GAP. Realistically analyse what you are missing in the current period to achieve your goals.

With this basis you have a reliable and meaningful overview of your status quo and your pipeline, which you can build on in the next steps. Furthermore, this blog series will highlight the feeding as well as the development of your pipeline and present tactics to you.

In addition to acquiring new customers, exploiting your existing relationships is a promising approach to optimize your business, expand your business and thus increase your profits.

You can already find various tips for your relationship management. For this, consider the characteristics of an ideal account manager and follow the 10 commandments I have already described in the communication with your clients. You will also learn in my blog how to maintain your account properly and stay up to date. Furthermore, you will learn the difference between Price Clients and Relationship Clients and how to convince with articulated or implied knowledge.