1 Reply Latest reply on Oct 11, 2015 3:40 AM by Yuriy Fal

    Need help on a report around our sales cycle

    Nathan Lindstrom

      To my expert reporting community...

       

      Trying to create a report around a common sales metric for our sales cycle for opportunities.  The common methodology that I've seen is the avg. number of days in a given sales stage.  We look at our stages at probability levels:

       

      0%

      10%

      20%

      50%

      75%

      90%

      100%

       

      We have a data warehouse of snapshotted opportunity data.  What I think I need to do is create a calculated field that counts the number of days in a given probability and then take an avg. of those days grouped by probability.  Does anyone have any experience with this type of reporting?

       

      What I'm concerned about is that often our opportunities get created at a probability of 10% or 20% and I'm worried this might skew the results.  They also tend to skip probabilities meaning they might go from 10% to 50% and never touch 20%.

       

      Like every company in the world we want to be able to report how long opportunities spend in a given stage but don't know the best way to go about doing it in my case.

       

      Appreciate any help in with this subject matter...

       

      Thanks,


      Nathan

        • 1. Re: Need help on a report around our sales cycle
          Yuriy Fal

          Hi Nathan,

           

          Here are some Qs & thoughts on a subject:

           

          1) Is probability a calculated value (based on a logic of a kind

          about which state of an opportunity have been reached)?

          Or is it an estimation made periodically by sales people themselves?

           

          2) What does 100% probability mean? Opportunity closed? Win or Loose?

          What are completion rates (both Win and Loose) at any stage of a pipeline?

          What are drop-out (bounce) rates from any stage? Does it make any business sense?


          3) How often probability changes to a lower bin the next day (from 75 to 50, for example)?

          Does it even a case? Or your sales people prefer not to change (stay with 75 till it moves to 90, or bounce anyway).

           

          4) Will your system write a record when an opportunity goes from say 50% to Close/Win?

          Or may be it'll write 4 records at once (50->75, 75->90, 90-100, 100-> Close/Win)?

           

          As you could see, there may be some devils in details.

          And even if your data & software allows for a straightforward calculation, for example


          AVG({include OpportunityID : COUNTD(Date)})

           

          it could not necessarily make any business sense.

           

          So here below are my two cents:

          Both an overly complicated logic and/or a unnecessary frequent (re-)evaluation of probability

          could muddy waters a lot, bringing noise without any real understanding.

           

          Yours,

          Yuri