‍

As an entrepreneur who's ventured into several startups and worked extensively in sales, I've found that one of the most critical aspects of building a successful business is mastering the art of sales pipeline management. Among the myriad of strategies and systems available, I've discovered that the Win-Solid-At Risk (WSR) classification system is an incredibly effective, simple, yet powerful tool to assess the likelihood of winning potential deals. In this blog post, we'll delve into the WSR system, unraveling its components, its importance, and how it can boost your sales efforts.

Understanding the WSR System

At its core, the WSR system is a classification method consisting of three categories: Win, Solid, and At Risk. Each category provides a snapshot of where a potential deal sits in the sales pipeline and offers insights into the likelihood of its successful closure.

Win

The 'Win' category is the ideal. These are deals that your sales team is confident of closing. They are typically at the later stages of your sales pipeline, where critical issues such as pricing, delivery, and contract terms have been agreed upon. What's left is essentially crossing the t's and dotting the i's; waiting for final approvals or signatures.

Solid

'Solid' deals, while promising, aren't yet a sure bet. There's a good degree of confidence, but a few wrinkles still need ironing out. This could be negotiations on price or fine-tuning the exact scope of the product or service. Despite these minor hurdles, the prospects have demonstrated interest, and the probability of closing the deal remains high.

At Risk

Deals classified as 'At Risk' present the most significant challenges. Here, the likelihood of success is considerably lower due to various potential obstacles. These can range from stiff competition and budget constraints to a lack of consensus among the customer's decision-makers. These deals require a strategic approach and additional resources to increase the chances of converting.

Not in Roadmap (NIR)

Though not universally standard, "Not in Roadmap" (NIR) has found usage in some sales organizations. NIR deals are those not included in the sales forecast roadmap, due to various reasons:

  1. Unexpected Opportunities: Deals that emerge out of the blue and weren't part of the original sales plan or forecast fall into this category. An existing client might suddenly express interest in a large upgrade or new product that wasn't foreseen.
  2. Long-term Prospects: NIR could also encompass deals expected to close beyond the current sales forecast timeframe. These prospects are still in the pipeline, but aren't anticipated to close in the current quarter or fiscal year.
  3. High Uncertainty Deals: Deals with significant uncertainty or risk get labelled NIR. They are omitted from the forecast as a conservative measure. This could be due to their early stage, intense competition, or an unclear decision-making process from the prospect's end.

Remember, the interpretation of NIR can vary based on the specific practices of a given sales organization. If you're unsure what NIR means in your context, it's best to seek clarification from a supervisor or a seasoned colleague.

Stretch Deals

"Stretch" deals are your moonshots in the sales universe. These opportunities are particularly ambitious, challenging, and risky but offer substantial rewards if successfully closed. They could be larger than typical deals, involve influential clients, or herald entry into new markets. Let's delve into the reasons why a deal might earn the "Stretch" badge:

  1. Size: The deal is considerably larger than your organization's average, requiring more resources, complex negotiation, and implementation.
  2. Prestige: The deal involves a high-profile or prestigious client or account. Winning such a deal could significantly bolster your organization's reputation and pave the way for new opportunities.
  3. New Markets: The deal represents an entry into a new market, industry, or geographic region, bringing along unfamiliar challenges and risks.
  4. Competitive Landscape: The competition for the deal is fierce, with many competitors in the fray, or you're up against a formidable incumbent vendor.
  5. Technical or Operational Challenges: The deal demands delivering a solution that is technically or operationally more intricate than usual, perhaps involving significant customization, integration, or other hurdles.

Managing stretch deals necessitates a careful evaluation of the risks and rewards. It's crucial to allocate sufficient resources and attention to these opportunities. However, maintaining a balanced pipeline is key – focusing solely on stretch deals should not come at the cost of losing sight of more straightforward opportunities.

The Power of WSR in Sales Forecasting and Prioritization

The beauty of the WSR system lies not just in its simplicity but also in its adaptability. It's a dynamic classification that allows deals to move between categories as circumstances change.

This system provides a clear picture of where each deal stands, enabling sales teams to prioritize their efforts effectively. For instance, if an 'At Risk' deal is of high value or strategic importance, more resources can be allocated to overcome the challenges. Alternatively, efforts can be channeled towards 'Solid' deals to accelerate their progression towards a 'Win'.

Moreover, the WSR system also assists managers in making more accurate sales forecasts. By classifying deals based on their likelihood of closure, it's easier to predict revenue outcomes for a given period. This can greatly aid in decision-making and strategic planning.

Final Thoughts

In the high-stakes world of sales, any tool or strategy that offers an edge is worth its weight in gold. The WSR system is one such tool. By providing a simplified yet effective way of qualifying deals and forecasting sales, it enables sales teams to optimize their efforts, manage their pipelines efficiently, and ultimately, close more deals. It’s simplicity at its best: a practical system with powerful implications for your bottom line.

‍