Performance formula

The Sales Excelerator programme applies the following performance formula:

(# opportunities) * (deal size) * (win rate) : (length of sales cycle) = revenue

Thus, revenue is determined by the number of opportunities multiplied by the deal size multiplied by the win rate divided by the length of the cycle. The faster you can bind customers to your company, the smaller the risk of them being lured away by competitors. Now, if you succeed in doing 5 per cent better on each of these components, your company can potentially generate 22 per cent more revenue. This is a highly simplified version of the actual process behind the excelerator theory. Particularly the win rate component is a good deal more complex, as it involves several variables.

An additional advantage of these improvements is that the supply chain forecasting can be made much more accurate. A better estimate of sold services and products coupled with sales in the pipeline means that production can be organized much more efficiently. Shortening the sales cycle is another crucial aspect. At one customer of TOTE-M, the sales cycle was accelerated by 22 per cent. In other words, the time needed to turn a prospect into a real customer was cut by almost a quarter.

You can download the leaflet about Sales Excelerator below on this page.