microsoft dynamics crm

If you want to make 5 contracts per quarter and have a 20%-win rate, that means you will need 25 opportunities to reach your goal.

If the conversion rate between leads and opportunities is 10%, that translates into 250 leads quarterly, ie 84 / month and 4 leads daily.

4 leads / day means a lot if you are a seller who does not receive leads from marketing. It means between one hour and four hours of daily work per lead generation. It is probably achievable in your field, but only with strict discipline.

However, if your rates improve due to the increase in the quality of the selection (you no longer follow green paths on the walls), things change fundamentally:

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  •  at 30%-win rate, the 5 contracts need 17 quarterly opportunities
  •  At 20% conversion rate, the 17 opportunities require 85 leads per quarter, ie 1.38 leads / day, which is a completely different story.

These examples show why it is important for the seller to calculate their conversion rates and improve them!

If you use Microsoft Dynamics CRM and measure your conversion rates every 6 months, it's best to set goals for improving them at the same frequency.

How do you do that?

First, you must consider the duration of the sales cycle. Let's say the average sales cycle is 2 months. You are interested in the sales cycle opportunities completed. Therefore, in the Opportunities list select the All Opportunities filter and create a new view, All Opportunities Last 12 months.

In this view you put as a filter the date of creation of Last 12 Months and add the following columns:

  •  Account Manager
  •  Actual Close Date
  •  Actual Revenue
  •  Created By
  •  Created On
  •  Originating Lead
  •  Owner
  •  Status

Now sort the opportunities by the Created On column and export the list to MS Excel.

Exclude opportunities that are newer than the sales cycle.

Check the remaining list and exclude opportunities that are not typical, such as:

  1.  Opportunities that have a very long lead time, over the usual deadline. For example, I excluded a 12-month term opportunity in a company where the typical sales cycle was 2 months.
  2.  Opportunities that occur very rarely are generated by exceptional situations that cannot be repeated.

Now sort the remaining opportunities by the Status column and count those with the Won status. Divide the number obtained by the total number of opportunities. This is your win rate.

Use a similar process to calculate the lead conversion rate.