Docs / New Value
Taking the (F)low, (A)verage Sale, and (C)onversion Rate of the 4 Factors into account, New Value is the starting picture for the growth and stability of the sales team.
It all comes down to New Value — a sales team not generating new value is a dying sales team.
The basic goal for any sales team is firstly to ensure that New Value is consistently positive. The more consistent New Value is, the more consistent wins will be, all else being equal. Secondly, New Value should be increasing every month, which signifies a healthy and growing lead generation capability.
You may notice from the equation above that it is possible for one of the variables (New Deals, Average Sale, or Conversion Rate) to be simultaneously or independently increasing or decreasing in any month. For example, the sales team may be improving their Conversion Rate, but Average Sale is getting worse. Ideally, we want all factors to be increasing over time. This will multiply sales team performance.
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