New Business
Link: Average Selling Price - New Business card
Overview: Average bookings value of each new business opportunity closed won during the period.
Why it’s important: It gives a measure of AE selling quality by showing the average deal size at which an AE is able to convert a prospect into a customer.
Who it’s useful for: AEs and their managers.
Definition: For an individual, the sum of bookings for all new business opportunities closed won for at least one dollar during the period divided by the count of opportunities closed won for at least one dollar during the period.
For a team, the average of this figure for each rep on the team.
What data is used?: Salesforce Opportunity data from the Amount (or custom) field, and the Close Date field to associate to the appropriate timeframe. This card pulls the standard Amount field by default but can be updated to pull from a custom field by an admin user or by notifying Atrium customer success. The Opportunity Type field is also used to identify which opportunities should be classified as “new business”.
Alerting: Alerting for this card is based on a trailing 90 days timeframe, in order to capture all deals in a trailing quarter - in that larger deals sizes can cluster towards quarter ends for some sales motions.
If at any point the average selling price a rep attains over the trailing 90 day period is at least 25% above or below their prior six-month average, an alert will fire. Alerts will also fire if a rep’s trailing 90 day ASP is at least 25% above or below the average of his or her peers.
Back of Card: The data on the back of this card shows, for each Opportunity included in the calculation, the Opportunity Name, the Bookings for that specific Opportunity, the number of meetings Atrium was able to associate to the Opportunity, and the number of unique contacts Atrium was able to associate to the Opportunity.
How to use it: One area where this card will be extremely useful is in forecasting. Quota divided by ASP gives the number of deals that need to close in a given timeframe. A manager can then review the Opportunities Advanced and Opportunities Owned cards to determine whether AEs are working enough deals and advancing them through the sales process.
Another use for this card is to identify reps whose deals sizes are consistently higher than the rest of the team to identify best practices that can be shared. Similarly, ASP can be used as a leading indicator of a rep that is struggling to convert his opportunities into bookings.
Worth noting: All opportunities that are Closed Won for an amount that is zero dollars or negative will not reflect on this card. In this way, we are excluding free trials and finance adjustments from the calculation entirely.
Existing Business
Link: Average Selling Price - Existing Business card
Overview: Average bookings value of each existing business opportunity closed won during the period.
Why it’s important: Because it gives AM managers a quick check-in as to how accounts are distributed by size, and lets the CRO/VP Sales see at a glance how deal sizes for new vs. existing business are trending.
Who it’s useful for: AMs and their managers. Sales leaders covering both new and existing business bookings who want to understand how the deal sizes of renewal vs. new bookings relate to one another.
Definition: For an individual, the sum of bookings for all renewal and upsell opportunities closed won for at least one dollar during the period divided by the count of opportunities closed won for at least one dollar during the period.
For a team, the average of this figure for each rep on the team.
What data is used?: Salesforce Opportunity data from the Amount (or custom) field, and the Close Date field to associate to the appropriate timeframe. This card pulls the standard Amount field by default but can be updated to pull from a custom field by notifying Atrium customer success. Opportunity Type to identify whether an opportunity should be classified as “existing business”.
Alerting: Alerting for this card is based on a trailing 90 days timeframe, in order to capture all deals in a trailing quarter - in that larger deals sizes can cluster towards quarter ends for some sales motions.
If at any point the average selling price a rep attains over the trailing 90 day period is at least 25% above or below their prior six-month average, an alert will fire. Alerts will also fire if a rep’s trailing 90 day ASP is at least 25% above or below the average of his or her peers.
Back of Card: The data on the back of this card shows, for each Opportunity included in the calculation, the Opportunity Name, the Bookings for that specific Opportunity, the number of meetings Atrium was able to associate to the Opportunity, and the number of unique contacts Atrium was able to associate to the Opportunity.