Count your losses, can you? When it comes to the revenue leaking out of the pipeline, most sales leaders are unable to give a number. That happens because revenue leakage is invisible: you can’t see it, and you can’t fix what you can’t see. Read on to learn how you can discover and fix revenue leaks.
In this open guide, we look at revenue leakage and what can be done to solve it.
Your pipeline leaks more than you know
Are you losing thousands or millions of dollars
How you can detect revenue leaks
Manual way of detecting gaps and leaks just doesn’t work
How to fix a leaky pipeline
4 steps to follow to nail it
Why revenue leakage happens
Is your revenue engine outdated?
What changes to expect as a result
The impact fixing leakage will have on performance
Everyone’s pipeline is leaking, including yours, and that’s a fact. Even pipelines that seem fine have a leak here and there. But how sure can you be that leakage in your pipeline is as small as you think it is? How do you even measure the magnitude of the leaks happening across the pipeline? In other words, do you lose thousands or millions of dollars?
According to our research of more than 200 Sales and Rev Ops, most of their time and effort goes into attempts to find the gap and then to implement a change that would, hopefully, improve the process. Whether that process gets improved or not often stays undetectable.
This manual process also requires a lot of labor and combing through silos of data. It’s clunky, exhausting, and unfortunately, mostly ineffective.
No matter how long your SalesOps or RevOps stare at raw data in Salesforce or how often they interrogate your sales team, they will never be able to determine the magnitude of revenue leaks. Especially if you do not have a unified view of data and an aligned revenue engine.
The best way to detect just how big the problem is to use a revenue operations and intelligence (RO&I) solution that can automatically spot gaps and signal you immediately.
Above are the two states of the same funnel: the before state with magnitude of revenue leaks undetected and the after state with leaks found and fixed with RO&I.
Increasing conversion rates by 5% in absolute numbers has produced a significant difference in the realized revenue. This means that the leakage hiding in the pipeline was costing the company twice as much as it was earning.
Deeper take on the revenue process and fixing leakage from industry insiders
The more accurate and error-free your data, the less likely the chance of leaks happening. Find a tool that can automatically capture sales activities from a variety of sources, including calendars, emails, and all relevant communication tools to create an accurate central source of truth.
Once you’ve pooled all related sales data into a shared source of truth, look through these collected data to spot where and why leaks may happen. Manually doing this might be (near) impossible, but with a revenue intelligence tool, you can analyze current and historical data to produce actionable insights to spot leaks on time.
Identifying revenue leaks isn’t enough by itself, you have to create company-wide structural changes to eliminate them. For instance, creating custom triggers for your reps to act at a specific stage or on a specific deal in the sales process. This ensures your team follows the right processes and playbooks every time to prevent leaks.
The most important, yet trickiest part is to measure the impact that the changes have or haven’t brought to the revenue. You need reports and signals that show you exactly what the effect has been, in real-time and as the pipeline is evolving.
Leakages typically happen at conversion points, that is, when leads are being moved from one stage of the funnel to the other.
Conversion rates could dwindle due to a number of problems in your processes and workflows such as:
But, most importantly, leaks happen because your revenue engine has a problem.
The root cause of problems most likely lie within your revenue engine.
Your revenue engine comprises all the go-to-market functions that generate revenue in your business, from sales, marketing, to customer success.
If your revenue engine is outdated and can’t cater to a dynamic sales process and workflow, leaks will happen. So, no matter how many leads you pour into the tank, your revenue ship won’t sail
Misaligned revenue engine
Aligned revenue engine
Book a no-commitment demo call with our team
Even when the leaks you have found don’t seem to influence the whole organization directly, fixing
them will. It would have an incredible impact on the whole system, from the bottom line to the
According to Sales leaders, using RO&I boosts revenue and improves conversation rates per stage, as well as increases deal velocity and other revenue-centric metrics.
Detecting leaks with AI helps Sales Managers to effectively roll out sales playbooks and implement sales coaching — digitally and directly for the situation at hand.
RevOps report that activity capture, holistic view of the sales process, and AI-powered insights accelerate efficiency across the business.
Sales Ops teams report getting a clear view of the sales team’s adoption of best practices and surface new tactics like playbook adjustments.