Question

1. Joe and Vickie’s manager wants to forecast the number of sales that will require fulfillment in the next five months. Below are the current pipeline activities:

	Interest Creation		Pre-purchase		Purchase	Post-purchase
Salesperson	Cold Leads	Warm Leads	Prospects	1st/2nd Meeting	2nd/3rd Meeting	Delivery	Support
Joe	21	17	11	8	4	11	17
Vickie	38	19	16	9	6	3	19

These historical averages exist for each of the activities:

• 3% of cold calls are converted to sales within five months.

• 19% of warm calls are converted to sales within four months.

• 31% of prospects are converted to sales within three months.

• 47% of customers who agree to a pre-purchase meeting are converted to sales within two months.

• 64% of customers who agree to a purchase meeting are converted to sales within one month.

What is the sales pipeline volume?

Answer 1

• 3% of cold calls are converted to sales within five months = 3%*(21+38) = 1.77
• 19% of warm calls are converted to sales within four months = 19%*(17+19) = 6.84
• 31% of prospects are converted to sales within three months = 31%*(11+16) = 8.37
• 47% of customers who agree to a pre-purchase meeting are converted to sales within two months = 47%*(8+9) = 7.99
• 64% of customers who agree to a purchase meeting are converted to sales within one month = 64%*(4+6) = 6.4

Hence the total sales pipeline volume = 1.77 + 6.84 + 8.37 + 7.99 + 6.40 = 31.37

Hence sales pipeline volume is 31(rounding-off)