Base estimated revenue on total secured sales + total weighted value of your opportunities
To get a good estimation of your future total revenue, it's important to look at both secured revenue and the weighted value of all the opportunities in your pipeline. This article explains how.
This article will cover:
- Calculating weighted value
- Calculating total future revenue
- Displaying estimated total future revenue in Upsales
Calculating weighted value
In an ongoing sales process you know that unexpected things will happen and opportunities will fall through. That's why it's a good idea to base future revenue on a weighted value of your opportunities.
Weighted opportunity value
Weighted opportunity value = opportunity value * probability for opportunity to become a closed deal
Example: Opportunity value is €3,000. Probability to close the deal is 50%. Weighted value is €1,500 (3,000*0,5)
Probability is based on the opportunity stage. Each opportunity stage in Upsales represents a probability percentage for the opportunity to become a closed deal.
By default the opportunity stages and their probability to become a closed deal are:
- Lost deal (0%)
- Fallback (5%)
- Prospect 1 (25%)
- Prospect 2 (50%)
- Verbal agreement (75%)
- Closed order (100%)
These opportunity stages and their probability percentage can be changed in:
Settings → CRM → Opportunity stages
Weighted pipeline value
Weighted pipeline value = the sum of every weighted opportunity
Example: There are three active opportunities in the pipeline. The weighted value of each is €5,000, €1,500, and €2,000. Weighted pipeline value is €8,500
Calculating total future revenue
By adding secured revenue and weighted pipeline value you'll get a good estimate of what the revenue will be within a certain time period.
Estimated total future revenue = secured revenue + weighted pipeline value
Example: In the coming 12 months the revenue already secured is €30,000. The weighted value of the pipeline is €200,000. Estimated total future revenue is €230,000 (30,000+200,000)
Displaying estimated total future revenue in Upsales
In Upsales Insights it's possible to create a dashboard that displays the estimated total future revenue.
- In Upsales Insights, define the time period of which you want to get a total revenue estimate.
- Include total secured revenue from all closed deals
- Include the weighted value of your pipeline.