STEPS TO IMPROVESales Forecast Accuracy
Sales forecasting can be a challenging task for Sales Managers
As it involves predicting probable future behaviors of sales team members and customers
Three Key Steps For Improving Sales Forecast Accuracy
Define exit criteria by customer action
1
Defining objective stages and exit criteria in each stage of the sales process is crucial
Capture the criteria based on what customer actions are needed...
...in order for the opportunity to be promoted to the next stage
Examples of Customer Focused Criteria Include:
Salesperson… Customer…
Sends information to customer Agrees to meeting to review materials
Identifies a business need of the customer Acknowledges the need
Qualifies timing of the opportunity States how they’ll make a decision and by what date
Creates interest in the proposed solution Agrees to follow-on presentation on specific date
Bloated sales pipelines can result from a
lack of objective criteria for each stage
Defining these details ensures more consistency
and a cleaner pipeline
Assign probabilities and next action date for each opportunity
2
Each stage in the pipeline should include a probability factor…
...based on an analysis of prior wins and losses
Once the pipeline is clean with accurate actions being accomplished at each stage…
…the probability of closing can be monetized and used for forecasting
Require Commitment to the Forecast
3
Ensure each sales professional is prepared and committed to the
monthly forecast
Set tangible rewards for those who come closest to the number forecasted
To increase the visibility and attention each rep places on the
importance of a clean pipeline and accurate forecasts
Get a commitment to the forecast and review it at month-end
Learn How to Motivate Your Team for Training Success & More!
Download White Paper
COMPLIMENTARY OFFER
By Ray Makela
@RayAMakela