FTM Business Template - Sales Scorecard

Sales Scorecard
Business Template
What is a Sales Scorecard? When should you use it?

The Sales Scorecard is a structured method for The Sales Scorecard should be used at the start of a
planning, prioritising and tracking sales opportunities new campaign or sales opportunity. Use it to
through to a successful sale. capture essential information during the initial
discovery meeting, and then use the checklist at
Why is it relevant? each review meeting to assess the current
Profitable sales are the lifeblood of most commercial probability of success.
organisations. Use the Sales Scorecard to drive the
adoption of best sales practices across your team. How should you implement it?
Start by gaining support for your approach from your
Who needs to be involved? top sales people as their buy-in will be critical to
Everyone in your sales team will benefit from the success. Then issue the team with the template and
adoption of a best practice approach to selling. ask them to assess their top five opportunities using
Furthermore, a common approach will help teams to the Scorecard checklist – this should demonstrate its
work together and to learn from each other. Avoid value as a tool for planning the activities necessary
introducing too much additional bureaucracy by to make the sale. Ultimately success will then be
using the Scorecard checklist on high value dependent on how you use the outputs from the
opportunities only – effectively having a FastTrack consolidated scorecards in the form of simple red-
and a Complex approach based on the value to the amber-green reports at your regular monthly
business. performance review meetings.
© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com
or contact us at: info@Fast-Track-Me.com
Sales Scorecard
This is a case example based on a fictitious company called TVT – all the data is displayed for demonstration
purposes only. For a detailed explanation of what each cell is used for please refer to the Virtual Consultant on the
following pages.
Form 1: Opportunity Overview

Opportunity profile Value-Cost-Time summary
Sales increase 30% valued at
Target Customer TVT Surprise-lite to Tasbo Best case
£450,000
Opportunity Increase sales of Surprise-lite, Arctic
Worst case Sales do not increase
Description range to Tasbo by 20%
Sales Person Andy Bruce Expected value £200,000
Channel Direct Cost of sale £5,000
Tasbo are increasing their product range
Probability of
Customer Situation in express stores and targeting more 0.8
success
web sales
Tasbo need to be selling products with a
strong brand, that appeal to the health
Customer Problem Forecast value 160,000.00
conscious and take the Tabso brand up-
market
Will increase Tabso's sales of healthy
Business Impact products, increase sales and assist in Start date 9 Mar 2006
repositioning their brand
Recommended Increase account management focus and
Target close date 28 Apr 2006
Solution TV advertising inserts of Surprise-Lite
Involvement Marketing department Actual close date
Sales process Demonstrate solution Last save 9 Mar 2006 14:08
Campaign underway and progressing
Classification New sales to existing customer Last update
nicely
Number of Insights 0 Status Green
Number of Issues 0 Actual value TBA
Form 2: Scorecard
Criteria Qualification checklist Criteria status Score
Does this prospect fall within the current Yes, it is a strategic customer and a core product
1 Right target 10
strategic markets? with good margins
Right client Is there a real client need and is it worth Yes, this will improve Tasbo's sales in their Healthy
2 8
need the campaign effort? range
Has a budget been allocated and the RoI Finance have agreed with the costings and the
3 Right finance 10
criteria agreed? spending has been approved
Do we know and have a relationship with Yes, we have relationships with all decision makers
4 Right people 10
the key client people? and influencers
Right Is there a deadline for implementation
5 The deadline is set and it is realistic 8
timescale and can we meet it?
Yes, we have pitched this to Tasbo and they agree
Does our solution address the business
6 Right solution this fits in with their strategy and fulfils their 9
needs - and can we prove it?
business needs
Has the basis of the decision been Yes, this has been agreed and we influenced it
7 Right criteria 10
agreed and have we influenced it? directly
We have completed the market research and the
Right Can we demonstrate that our solution is
8 results are positive, we are ready to implement 9
Workplan practical to implement and operate?
our plan now
Right level of Have we identified campaign risks and We need more work to identify the risks and come
9 3
risks put in place mitigating actions? up with mitigating actions
Do we know the competition and do we We have already been selling this product and
10 Right USP 9
have a clear source of advantage? have proved our competitive advantage
Overall, is this campaign worth the
Summary Yes, it looks very good 86
necessary effort?
Graphic: Spider’s web
Virtual ConsultantTM
The Virtual ConsultantTM provides a step-by-step guide to completing this business template. It is worded as a
series of questions designed to make you stop and think about this topic in a challenging and creative way – as if a
business coach or consultant was sitting next to you.
Form 1: Overview
Target & Opportunity Description

Who is the target customer or client, and what is it that is being sold to them?
Sales person
Who is responsible for the closure of this sales opportunity?
Channel
What sales channel or strategic partner is used? (If none, simply enter 'Direct')
Customer situation
What is the current situation leading to this opportunity?
Customer problem
What is the business problem that the target needs to resolve?
Business impact
What is the overall impact on the target's business performance?
Recommended solution
What is the proposed solution?
Involvement
Who else (individuals or groups) need to be involved in this opportunity in order to guarantee success?
Sales process
Where is this opportunity in the overall sales process?
 1) Create interest: Making the customer aware of the products, services and capabilities. Who are we, what do we do and
what makes us different?
 2) Establish need: Understanding the customer situation. What specific problems of opportunities do they face and how is
it impacting their performance?
 3) Agree basis of decision: Checking the criteria that the customer will use to make the choice as to which solution they will
go with. Have we influenced these criteria in our favour? Do we know what the customer's ideal performance is for each
criteria?
 4) Build business case: Establishing how the Return-on-Investment (RoI) will be calculated. What are the expected financial
returns and is the investment worth it? Whatever solution we propose must reflect the scale of the customer need
 5) Demonstrate the solution: Ensuring that the customer understands our offer sufficiently to make a decision. Have we
demonstrated that we can meet the customer criteria effectively (and better than our competition)?
 6) Present the proposal: Formally submitting an offer to provide the service at an agreed price. Have we made sure that we
are reflecting the key customer need, our source of differentiation, and how we meet their selection criteria?
 7) Handle objections: Providing satisfactory answers to customers concerns. Have we provided evidence (reference sells)
that we can meet their criteria, and shown how we would manage any perceived risks?
 8) Close opportunity: Reflection on the management of the sales opportunity to learn lessons for the next time. Have we
complete a formal win-loss analysis and captured insights for the future?
Classification
What type of opportunity is this? Customers and opportunities can often be grouped into natural segments or
types. This will help with the overall sales effort in terms of the approach, the amount of effort required, and even
who needs to be involved. Analysis of sales by type at the end of the year will also help to establish areas where
you are strong and areas where you are weak
Insight count
How many insights or lessons have been learned on this opportunity so far? Whilst capturing learnings does not
help the current sale, these insights can have a dramatic impact on future campaigns, and helps to ensure that the
departure of a key member of the sales team does not also result in a loss f vital insights
Issue count
How many current issues are there associated with this opportunity? These issues need to be resolved in order to
increase the probability of success
Best and worst case
What is the best and worst case scenarios for this opportunity? By thinking about where the initial sale might lead,
it helps to set the correct level of priority and focus, and may influence the way the opportunity is managed
Expected value
What is the value associated with the most likely or expected outcome?
Note: this should reflect the anticipated revenues from closing the opportunity
Sales and marketing costs
What are the direct costs of sale?
Note: you may want to include all associated costs including your time, or alternatively, just the direct marginal
costs associated with this opportunity. Recognise that major opportunities may require a marketing plan
Probability of success
What probability would you assign to this opportunity?
Note: this is a 0 to 1 scale where 1 = sale closed, and 0 = no chance of winning
1 = sale closed and may be won (signed proposal or purchase order) or lost
0.8 = likely to win the deal, but have not yet received confirmation in the form of a signed proposal or purchase
order
0.5 = the customer recognises the value of the opportunity and is formally evaluating it from a business case
perspective - possibly in a competitive situation
0.2 = the customer need is understood but they have yet to see or understand the value of the solution (generate
interest and influence the basis of the decision)
0 = the opportunity has yet to be explored or there is no chance of winning (in which case it should be closed)
Forecast value
What is the forecast value of this opportunity? This is the value of the sale multiplied by the probability of success,
where you may or may not want to subtract the cost of sale
Start date
On what date was this formally recognised as an opportunity?
Initial target close date
What was the initial target date set for closure?
Latest or actual close date
What is the latest closure date? This is particularly important and will help to assess the accuracy of forecasting at
the end of the year. For most sales teams, they tend to forecast a shorter sales cycle than exists in practice
Status
What is the current status of this opportunity?
 Red = Concerns and immediate action is required
 Amber = Watch carefully
 Green = On track
 Black = Opportunity closed (won or lost)
Note: Red indicators should generate Quick Tasks, and Amber indicators generate Quick Risks
Actual value
On completion of the sales activity, what was the realised value to our company?
Note: if the sale was lost, this figure will be '0'
Form 2: Scorecard
For complex sales you may also want to compete a scorecard based on eight factors that increase the probability of
success
Criteria
What are the areas of a sales campaign that influence the probability of success?
Checklist question
What are the specific key questions to assess each campaign against?
Criteria status
What is the current level of performance against each criteria?
Score
Use a simple ten point scale to assess the campaigns overall status or 'health'
10 = Current performance cannot be improved, to 0 = no progress made to date what so ever
Note: overall scores of 0 to 50 reflect a significant weakness in the campaign, scores of 51 to 80 identify specific
concerns that need to be resolved before moving forward, and scores of 81 to 100 reflect a strong probability of
success
Sales Scorecard
Use the following blank template to address an issue or opportunity within your business or team
Form 1: Opportunity Overview

Opportunity profile Value-Cost-Time summary
Target Customer
Best case
Opportunity
Worst case
Description
Sales Person
Expected value
Channel
Cost of sale
Customer Situation Probability of

success
Customer Problem
Forecast value
Business Impact
Start date
Recommended
Target close date
Solution
Involvement
Actual close date
Sales process
Last save
Classification
Last update
Number of Insights
Status
Number of Issues
Actual value
Form 2: Scorecard
Criteria Qualification checklist Criteria status Score
Does this prospect fall within the current
1 Right target
strategic markets?
Right client Is there a real client need and is it worth
2
need the campaign effort?
Has a budget been allocated and the RoI
3 Right finance
criteria agreed?
Do we know and have a relationship with
4 Right people
the key client people?
Right Is there a deadline for implementation
5
timescale and can we meet it?
Does our solution address the business
6 Right solution
needs - and can we prove it?
Has the basis of the decision been
7 Right criteria
agreed and have we influenced it?
Right Can we demonstrate that our solution is
8
Workplan practical to implement and operate?
Right level of Have we identified campaign risks and
9
risks put in place mitigating actions?
Do we know the competition and do we
10 Right USP
have a clear source of advantage?
Overall, is this campaign worth the
Summary
necessary effort?
Graphic: Spider’s web

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Sales Scorecard

What is a Sales Scorecard? When should you use it?

Form 1: Opportunity Overview

Graphic: Spider’s web

Target & Opportunity Description

Form 1: Opportunity Overview

Customer Situation Probability of

Graphic: Spider’s web

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