Link: Average Selling Price
Average Selling Price measures the average bookings value of opportunities that are closed won in the given time period.
You will find 3 Average Selling Price cards in Atrium:
- Average Selling Price: This is the ASP of all closed won deals in the given time period. This card is valuable for teams that close a combination of New and Existing Business deals (Account Managers, Growth AEs, etc).
- Average Selling Price - New Business: This is the ASP for all New Business Opportunities closed won in the given time period. This card is valuable for teams that primarily close new business deals (Inside Sales reps, etc).
- Average Selling Price - Existing Business: This is the ASP for all Existing Business Opportunities closed won in the given time period. This card is valuable for teams that primarily focus on existing business deals (Account Managers, Customer Success, etc).
Note: All Opp Types are mapped to "New Business" or "Existing Business" in your Organization Preferences Page.
How to Use It
If you've been using the existing ASP cards, but your team closes both New and Existing Business deals and have been wanting to measure the combined performance for your team, this is the card for you!
If you need some tips on how to incorporate the Average Selling Price cards into your flow, here are some common use cases:
- Average Selling Price is a variable in the Bookings Formula (Bookings = Opps * Win Rate * ASP / Deal Cycle) and gives a measure of a rep's selling quality. It is an important metric to use to evaluate the performance of your team or reps.
- Teams should track changes in ASP over time for teams and reps - especially as your organization makes changes to pricing or market strategy. For example, as you enter new verticals, increase your pricing, or enter new market segments (SMB, MM, ENT), its important to track how these changes affect your ASP over time to adjust your sales motion.
- Add this card to Forecasting Dashboards and Alert Feeds to use your team's historic ASP and current open opps and historic win rates to understand future bookings.
- Use the Opp Type filters on the Average Selling Price card to evaluate the ASP for your Opp Types (ie product specific or certain expansion type deal cycles). You can use this with the Opps Owned card for a more granular view into Rep Performance and to use in Forecasting and Planning.
- Set Goals on this card to set a benchmark for the deal size you expect your team to be delivering in order to reach their quota. You can use filters in goals to make more specific targets, for example, set a goal for Average Selling Price for a specific type of Expansion opp type.
Examples of How to Use This in Practice
Diagnose what Bookings Formula metrics are impacting a rep's performance. A low ASP means this rep needs to work more opps and/or have a much higher deal cycle to compensate for a smaller deal value.
Understanding their low ASP as a cause for low bookings allows their manager to set goals on this rep's Average Opp Size and coach them on improving their sales quality to deliver higher value deals.