There are many CRM systems that measure the “Probability to Close” metric of a sale for our organizations. There are also many discussions on social media about how we can effectively measure the likelihood that a particular piece of business that we are chasing will become reality for the organization. This potentially creates a problem for our organizations when that particular piece of business might not actually become a reality at all. How can our organization effectively plan resources based on a “Whim” that is entered without a factual basis by us?
As sales people, our organization trusts that we are bringing qualified opportunities that will close within a given amount of time so they can plan on delivering the goods and services that we are selling to make the customer happy and deliver a profit for everyone involved.
What criteria do we use to measure probability for our organizations? I would offer the following criteria to ensure the proper amount of resources are dedicated to the proper opportunities that we deliver. We need to answer the following criteria that define the actual sale and assign a value to it to ensure success for all of the stakeholders. The criteria is known as “BANT”
Budget = 20%: Do the prospects have the budget to purchase what we are offering to them as a value?
Authority = 20%: Are we speaking with the decision maker(s) that can purchase the product or service that can add value to them?
Need = 20%: Do they need what we are offering as a product or service and can it add value to them?
Timing = 20%: Can they purchase the product or service that we offer within a given timeframe that will produce value for both stakeholders?
The remaining 20% is all “Us”. Are we and our company a credible source of the product or service that will bring them the identified value in the time frame that they expect instead of the competition that they have also met with? I guarantee you that we are not the only choice they have!
Most of us do not ask the right questions to discover the “Budget” before we present a solution and then are surprised by a response from the prospect that they can not afford our product or service. How do those sales meetings and reviews work out for us after the time and resources you have spent chasing the business?
By using the above criteria to measure our opportunities, we can ensure that the organization will align behind us to deliver the necessary resources for the qualified opportunities that we are delivering. Don’t miss the “B”!