The Basics of Valuing an Opportunity

Posted in OPM Sneak Peak by Keith Thompson on the May 11th, 2010

The objective of the Opportunity Portfolio Management sales methodology is to unlock the potential in the overall portfolio of sales opportunities. To do this, each opportunity must be valued; once a value is established, salespeople can correctly apply their resources, most importantly their time. The most valued opportunities will be those most likely to be won, given appropriate attention. This caveat is important!

At first glance, valuing a sales opportunity may seem straightforward, but it isn’t. Putting effort into a one million-dollar deal at the expense of a twenty thousand dollar deal may not be the best way to go. There are many important factors other than dollar value that can, and do, come into play.

The attention given to one sale might be at the expense of something else, because there is only so much time to go around. The ability to administer sufficient attention to each opportunity is the only way for the salesperson to get the best out of their portfolio. Some opportunities may need a lot of attention, and others, hardly any.

If you are not valuing your opportunities properly, and therefore investing your efforts optimally, you could be losing out overall.

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Does Size Matter?

Posted in Sales by Keith Thompson on the October 29th, 2005

It’s interesting how business is segregated into distinct categories and the analysts go to work spelling out what is proper in each category. In CRM, there always seems to be a different reflection on what is going on in the SME (small to mid-sized enterprise) versus the Fortune companies – if that is what they are still called. The last time I looked SME covers a vast range in size and scope; 15 to 1000 employees and revenues of $5M to $1B.

This leads me to my point, which is easiest to phrase in the form of a question. Are the CRM or SFA requirements for multi billion-dollar companies any different from the smaller enterprises out there that make up the bulk of the economic drive and job creation throughout the world?

The answer is a bold, unanimous no. There is absolutely no difference between the CRM and SFA requirements of a global enterprise as a 12-man operation doing $2M in business a year. The core issues of CRM and SFA are the same across all markets.

Companies of all shapes, sizes and markets need a complete, accurate and clean store of critical customer information. To stay competitive, they require a seamless and smooth method of gathering information at every level of the organization. All of this has to be laid out on a collaborative network structure that allows crucial information to be accessed by any member of the team. Armed with this information, companies can best address the needs of their customers.

If you are among the majority of small-to-mid market enterprises out there, don’t assume that only multi-billion-dollar companies can take advantage of the potential of sound CRM and SFA solutions. The reality is, the sooner SME companies recognize how CRM and SFA fit into their own “grand scheme of things,” the quicker they get to realize their own potential.

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