How a Portfolio Approach Helps You Close More Deals

By Kira Lenke

In today’s complex, data-driven economy, a single approach to forecast your organization’s sales pipeline is not enough.

Denis Pombriant writes in CRM Buyer (“How Many Pipelines Do You Have“) about why organizations must move away from traditional forecasting techniques based on simplicistic sales stages and static probabilities, and rethink their sales pipeline as a portfolio of deals.

I’d like to summarize some of my favorite points in this article:

  1. A portfolio approach compares each deal with historic deals to provide a truer indicator of close probability than by comparing deals by stage.
  2. With machine learning, mathematical algorithms can analyze years of data to identify the most common portfolio types.
  3. Probabilistic models can provide the likelihood (or “probability”) with enough time for one to take action if the prediction is unfavorable.
  4. If you have a complex business with multiple sales pipelines, a portfolio approach will help you cut through the noise and volatility.

Lastly, I love Denis’ use of ice cream flavors — Chocolate, Vanilla and Rocky Road — to explain the concept of portfolios, which at Aviso, we call Total Revenue Intelligence.

And as luck would have it, my favorite flavor, Rocky Road contains the hardest to close deals. However, with a portfolio approach, at least risk/return is quantified for each deal, thus giving me confidence on the right deals to focus on for success.

To read the full article, go to CRM Buyer.

Interested in this topic?

Join me this Thursday, July 24 at 10AM (PDT) for a webinar with Robert Gersten, former Chief Development Officer at Hyperion Software.

REGISTER: Forecasting Revenue Using a Portfolio Approach




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