Businesses Find Lost Sales Through Effective Sales Forecasting - By: Rob Ellison

Do they have 15 or more sales people?

These are characteristics I've noticed are in place when I make the vast majority of my sales and absent while i don't close. When I meet a prospect for the very first time, I listen to hear or ask questions to get this information. I never want to leave a first meeting without to be able to determine the fit.
o Suggestion of an fit................ 0% or 30%; No or Yes

o Match to help Profile.................. 0% - 30% Degree of the match. If you're betting, the probability will end up off.

o Quality of Sales person...... Top 10%=25%, Top 25%=10%, Top 50%=0%, Top 75%=-5%, Bottom part 25%=-10%

Today go forth and anticipate.

And today I invite you to learn more.
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Forecasting future sales is among the most most difficult areas for many companies. The challenge is to produce consistent and accurate advance information which are often used by production, stock and service managers to arrange for future demands.

With practise, much of the forecasting work currently undertaken is very random, if not haphazard guess work. It is based on highly subjective reports in the sales people, often under short term pressure to predict tolerable levels of achievement in order to meet targets.

Consequently much of the medium-to-long-term gross sales order forecasts are often consisting of business projections based on nothing more scientific than optimistic guess work rather then on disciplined and realistic assessment of likely the conversion process of sales from person customers.

Companies spend a lot of money and hundreds of man hours on the annual, quarterly and monthly budgeting and forecasting activities.

Financial direction techniques and systems have developed apace in recent years but these have little input into the forecasting process, especially predicting short and extended sales.

The pressure for accuracy keeps growing. Jobs, investment and expenditure depend on making the right assumptions and predictions. Too often companies fail to spot in advance damaging trends or competitive activity which impinge on their ability to win brand-new orders.

The majority of forecasting, in the widest sense, is based on traditional information with some money for highly subjective judgements such as the economic climate, trends in the industry etc.

The Achilles heel of even the most important business planning methodology is an almost uncritical acceptance of what the sales team predict as imminent or long term business opportunities and their own value.

Companies put complex and time-consuming reporting procedures in spot for a capture data but can be extremely uncritical of the quality with the information itself which is actually provided.

On a regular basis the sales predictions : short, medium and long term - are highly know. They depend on your sales team's personal, quite often highly subjective views, and frequently reflect the pressure for 'certain sales levels to be achieved'

Predicting the actual chance of winning a unique order will change the closer the customer gets to placing your order. Two or 3 months ahead the sales men will report the get as 'in the bag', closer to, the odds will often be reduced or even just discounted. There is no discipline or consistency in the operation. Orders 'lost' now are going to be replaced by 'new' opportunities conveniently 2-3 months down the line.

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