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

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By Ray Makela

@RayAMakela