Enhancing Revenue Visibility with Streamlined CRM Stages

As services companies grow, sales, technical, and delivery functions become increasingly specialized, often managed by separate teams. To ensure operational efficiency across these groups, having clear visibility into future customer engagements and revenue is essential.

Previously, we explored strategies to improve financial forecasting in our article (https://elaxtra.com/insights/from-bookings-to-recognized-revenue-a-guide-for-technology-services). A well-structured CRM with clear pipeline stages enables companies to enhance revenue predictability and streamline operations, ensuring better alignment between sales, finance, and delivery teams.

Reducing the number of CRM pipeline stages is a practical approach to enhancing visibility and simplifying CRM sales operations. This approach provides sales and account management teams with a structured process while equipping finance and delivery teams with the insights needed for accurate forecasting.

Simplified CRM stages example below:

• 20% - Qualification (Initial discussions and exploratory calls)
• 40% - Assessment (Defining project scope and key requirements)
• 60% - Proposal (Presenting proposals, quotes, and solution details)
• 80% - Negotiation (Finalizing terms and sending agreements)

By adopting a simplified approach with well-defined probabilities, organizations can reduce complexity for revenue-generating teams while maintaining clarity for finance and operations. Companies can further refine stages from this foundation to align with their unique business needs.

Final Outcome: Won or Lost Deals

• 0% - Closed Lost (The opportunity is no longer viable)
• 100% - Closed Won (The deal is successfully secured)

Elaxtra Advisors is an M&A and value-creation advisory firm that assists institutional investors, private equity-owned platforms, and strategic acquirers invest and create value in worldwide technology services companies. Please contact us to explore potential partnerships.