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Sales Management Paint Points: The Sales Manager
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Sales Management Pain Points: Accurate Sales Forecasting

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What is forecasting?
It is doing your level best to accurately predict the amount of sales that will be closed during a particular sales period—month, quarter, half-year or year.

Today, every public company in the world must, for every sales or fiscal period, accurately predict its revenue.

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Sales Management Pain Points: Accurate Sales Forecasting

  1. 1. Making Accurate Sales Forecasting a Part of Sales Management Pain Points of Sales Management and How to Overcome Them
  2. 2. Nikolaus Kimla Email: n.kimla@pipelinersales.com Website: www.pipelinersales.com CEO at Pipelinersales Inc. Written by...
  3. 3. What is forecasting? It is doing your level best to accurately predict the amount of sales that will be closed during a particular sales period—month, quarter, half-year or year.
  4. 4. How important is an accurate sales forecast? Today, every public company in the world must, for every sales or fiscal period, accurately predict its revenue. At the bottom of this is an accurate sales forecast. If the company falls 2-3% or more short of its predicted sales, the analysts and various other critics really take it to task.
  5. 5. How important is an accurate sales forecast? Internally, accurate forecasting will make or break a sales manager's job. A forecast done sloppily or incorrectly will cause the company will lose confidence in that sales manager. The opposite is also true, of course: If a sales manager is consistently forecasting sales with a fair degree of accuracy, the company will have increasing confidence in that manager.
  6. 6. The trick to forecasting would be to have enough deals in the pipeline to determine the number you will end at. If you don't have enough in the pipeline, then you have to review the possibility of each single deal closing. You also then need to review deals scheduled to close next month or beyond and pull those in early. Forecasting is also a challenge because you are trying to guess where you will end up at the end of the month in the beginning of the month when things are the most unclear. Deals also tend to close right at the very end which is the most risky. — L.F., Sales Manager, Pipeliner CRM user “
  7. 7. Accurate Sales Forecasting There are 2 main components to sales forecasting: the people, and the technology. Without technology accurate forecasting is pretty near impossible.
  8. 8. Accurate Sales Forecasting But the other side of it is an understanding of people —specifically the people in your sales team. They can fall anywhere within the gamut of sales forecasting: ● Underestimating, because they're scared to really put their necks on the line and know that if they underestimate and come in over their estimation, they'll be heroes. ● Correctly estimating, which is what you'd really like to have but rarely get. ● Overconfident, which is where many salespeople fall. They're going to give you a fantastic-sounding forecast which they know you want to hear, but for which they don’t quite have the deals.
  9. 9. Accurate Sales Forecasting You could say that people and technology are the raw materials that you as a sales manager have to work with. Now, how do you bring them together?
  10. 10. Accurate Sales Forecasting Example: Let us say your sales rep Arnold tells you that this month, he forecasts his sales at $50k. It then falls to you to check out how realistic Arnold's forecast actually is. With a CRM solution like Pipeliner, it's quite easy: With a couple of clicks, you can visually look over Arnold's pipeline and see if his open opportunities add up to 50k. Even more, you can readily see how likely those opportunities are to close within the given time frame.
  11. 11. Technology and Accurate Sales Forecasts As far as technology goes, the more simple and intelligent the approach to forecasting, the more effective the forecasting will be. Unfortunately, most CRM systems fail in this regard. Pipeliner, however, utilizes the science of cybernetics—the science used to simplify complexity—and hence is able to provide highly effective forecasting facilities.
  12. 12. Learning from the Past Part of accurate forecasting means reviewing past performance. Your technology should allow this simply and easily. With Pipeliner, for example, you can go back into a previous sales period and readily tell which of the sales were new business, which were renewals, and which were upsells. You can see which rep brought in how much sales. It allows you to rapidly see what really happened.
  13. 13. Evaluating Your Sales Process The accuracy of your forecast has a direct implication on the effectiveness of your sales process. If your sales process steps do not provide the right tasks or actions, it will surely show up in the accuracy of your forecast. You can then take actions to straighten out your sales process.
  14. 14. Much More There is much more to know about sales forecasting—but these are the essentials. Learn them, and you’re well on your way!
  15. 15. NEXT SLIDESHARE IN THIS SERIES: The Lead Machine
  16. 16. CRM (R)Evolutionized—Instant Intelligence, Visualized! DOWNLOAD FREE TRIAL SEE ALL BENEFITSor
  • dexterevi

    Jul. 20, 2019

What is forecasting? It is doing your level best to accurately predict the amount of sales that will be closed during a particular sales period—month, quarter, half-year or year. Today, every public company in the world must, for every sales or fiscal period, accurately predict its revenue.

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