The Math of Sales: Forecast and hit your revenue goals


Mar 20 2024


As a revenue leader, the ability to predict and influence your pipeline and revenue outcomes is invaluable. Orum's "Math of Sales" calculator is designed to offer just that — a strategic edge in understanding and improving your sales outcomes. It's an analytical solution that simplifies the complexity of sales forecasting into actionable insights.

In this article, we will go through and break down all the different calculator components so you can understand how to fill out and interpret your own results.

The calculator breakdown

Step 1: Revenue and pipeline goals

The calculator's first input step involves setting revenue and pipeline goals. This helps establish a performance baseline and sets clear objectives.

Step 2: Revenue stats

Next, you detail your organization's sales dynamics, including the number of sales reps, meeting-to-opportunity conversion rates, average contract value, average close rate, and call steps in the sales sequence. These metrics give a clear picture of your sales funnel's effectiveness and efficiency, revealing the strengths to capitalize on and areas needing improvement.

Step 3: Pre-Orum KPIs

The third step requires historical call data on pre-Orum Key Performance Indicators (KPIs) such as prospects added, dials, connects, total meetings, and meetings derived from phone calls. These numbers are crucial as they show the raw activity levels of your sales teams and their direct output before any strategic adjustments or the introduction of Orum's platform.

Understanding the report

After feeding the calculator the required data, it crunches the numbers and presents a report summarizing the current state and offering a predictive outlook based on the set KPIs. Here's what the report brings to light:

  • Status quo pipeline generation: A snapshot of your expected pipeline based on current activities, helping you identify if there's a shortfall or surplus in relation to your goals.
  • Prospecting and call tasks impact: By altering these two variables, you can simulate how intensifying prospecting efforts and call tasks can influence your pipeline. This insight is powerful for adjusting strategies to cover gaps or accelerate growth.
  • Meeting and connection metrics: The report shows the daily and weekly expected outcomes in terms of connections and meetings, both overall and specifically from phone calls. These metrics are essential as they tie directly to revenue potential.
  • Alignment with quarterly goals: This section compares the calculated pipeline generation against your set quarterly targets, giving you a percentage indicator of your progress toward achieving your objectives.
  • Improvement opportunities: Perhaps most importantly, the report highlights how incremental changes in daily sales activities could lead to significant outcomes. It advocates for a balanced approach to increasing prospecting and call tasks to reach sales goals.

The power of the "Math of Sales" calculator lies in its ability to provide granular insight into daily operational metrics that, when improved upon, can significantly impact your revenue. However, the calculator also prompts a reality check — can your current operations and technologies support these increases? This is where the tool's true utility shines, as it doesn't just present an ideal scenario but encourages practical considerations.

Strategic implications and actionable insights

With the calculator's output, revenue leaders can draw conclusions such as:

Shavings make a pile

Even slight enhancements in daily sales activities can create substantial pipeline growth, underscoring the importance of consistent, incremental improvements.

Automation and time-savings

Implementing tools like Orum can save significant time by automating routine processes, allowing reps to focus on these incremental improvements.

Realistic goal settings

The calculator helps set realistic goals that consider your team's current capabilities and the realistic outcomes of implementing new strategies or tools.

Revealing hidden revenue potential

Our aim in creating the "Math of Sales" calculator is to unveil the phone's often-overlooked potential as a revenue generation tool. This calculator isn't merely about running the numbers — it's about starting meaningful conversations on how to refine and improve sales and revenue processes. By fusing data-driven insights with attainable objectives, we've crafted a tool designed to empower revenue leaders in making choices that not only make sense with their team's strengths and constraints but also align with your greater revenue goals.

Here's to not just reaching your targets but continuously surpassing them.