Docs / New Value
Taking into account (F)low, (A)verage Sale, and (C)onversion Rate of the 4 Factors into account, New Value calculates the dollar value of new deals entering the pipeline.
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 sales & revenue will be. Secondly, New Value should be increasing every month, which signifies a healthy deal 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 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, you want Flow, Average Sale, and Conversion Rate to increase simultaneously every month.
/w=3840,quality=90,fit=scale-down){kind=logo}
PredictableRevOps.org maintains the documentation of the PRO Framework and provides training certification for Partners and clients that wish to use PRO within their businesses.
PRO is sponsored by SalesInsights.io, a reporting and dashboard tool implementing the PRO Framework.
Learn
© 2024 Predictable Revenue Operations