Efficient Sales Frontier
Funnelcast Focus: The Efficient Sales Frontier
Funnelcast’s mission is simple: enhance your judgment to maximize sales. The Funnelcast Focus is one of our most powerful tools supporting that mission.
Our focus ranking helps you prioritize open deals to maximize sales over any time horizon (month, quarter, year, etc.). It’s highly automated and easy to use: simply work down the focus-ranked list of deals in order every day, adding your judgment as you go.
This simple process will, in the long-run, result in maximum sales from the funnel.
How does it work?
The efficient frontier is a hugely successful, Nobel-prize winning technique we borrowed from finance. Designed to generate maximum return from investments for a given level of risk, we simply adapted it to sales. Let’s say you’ve got about 200 open deals. Each deal has an estimate of risk (the chance it will close) and return (deal size). Funnelcast Focus starts by picking the top 20% that balance risk and sales (about 40 deals in this example). We call that a “portfolio” of deals. Choosing 40 deals out of 200 is a hard problem because of the huge number of possible combinations—over 2000000000000000000000000000000000000000000! We use Monte Carlo techniques from finance to estimate the space of all portfolios and look for deal combinations that maximize sales for each level of risk. It looks something like this:
Each dot in that picture is a portfolio of deals. Highlighted dots indicate particular combinations. The curve at the top is the “efficient frontier”—combinations of deals near that curve represent the maximum sales for that level of risk.
You choose to rank deals from among the “balanced risk”, “value-optimized” and “maximum expected value” portfolios, in increasing order of risk. Then, once a portfolio is selected, your entire sales funnel is ranked by impact on maximizing sales. The top 20% of deals from the efficient frontier are highlighted in green, and all deals are ordered by importance.
Work down the list in order, adding your judgment to each deal. This simple approach guarantees that you’re focusing on deals with the best chance of maximizing sales.
Check out our proven results. The Funnelcast Focus helped grow in-quarter sales by 58%.