Not to be confused with the typical unqualified lead, a VSO is something that can drastically increase a company’s growth and revenue in a moderate amount of time. VSO stands for Validated Sales Opportunity, but what makes this opportunity validated and what makes it an actual opportunity?
Lead generation simply brings in plenty of leads and contacts, but the vast majority of those are not qualified and only prove to chew up the valuable time that sales representatives have. A validated sales opportunity is a company that matches up with your company’s solution or offering. This is the right target company, an economic buyer or decision maker with the right problem or situation, with access to budget, and a strong driver for deploying the solution that your company offers and serious interest in your value proposition. Imagine if your sales team could spend 100% of their time with validated sales opportunities. It would blow away the concept of a sales funnel and transform it into a sales pipe – with majority of VSOs converting to revenue.
Companies utilizing VizQuest’s revenue factory for VSOs have commonly seen a 1,300% increase in their revenue growth efficiency, an impressive and jaw-dropping feat. The reason they provide such growth is that 30%-50% of VSOs close into deals in the stark comparison to the 1%-5% conversion rate of leads. VSO’s increase the yield on sales capacity, save time, and save resources, leading to these increased revenues.
The image below shows how VSOs enable optimal sales yield.
This model clearly demonstrates that opportunities increase significantly in value as they move through the Sales Pipeline. A VSO increases revenue growth efficiency.
Difficulties in Producing VSOs
There are several challenges that emerge when trying to locate validated sales opportunities. The first is that the sales and marketing dynamics have changed, and today these processes function quite differently from just ten years ago. Many marketing and sales organizations are not fully versed in the best practices and methods required to optimize a business development process, in order to consistently produce VSOs. Additionally, many companies have a lack of focus on demand generation optimization, and are not always pursuing these types of validated opportunities. There can also be misalignment between sales and marketing; where the marketing team is not fully cognizant of what constitutes an ideal selling opportunity for the sales team. Also, in many cases there are resource and/or budget constraints causing a company to execute very tactical and inefficient business development campaigns. Finally, there is often a lack of key performance indicators (KPIs) with which to measure validated sales opportunities in order to set them apart from less interested prospects.
By targeting the right companies that have a potential need for your solution and effectively mapping the value elements of your solution to the requirements of their respective business processes, you will increase sales process efficiency. By streamlining sales process efficiency, companies can then also increase their average order size and their yield on sales. Based on our research, VSOs are a sales organization’s biggest lever for increasing the Yield on Sales. VSOs increase time selling to closable sales opportunities, accelerate sales cycles and have the potential to increase transaction values. By producing VSOs, instead of leads, a company can improve sales efficiency, reduce resource requirements, and reduce cost of sales resulting in an inc