Find Lost Sales Through Effective Sales Forecasting To Increase Revenue - By: Rob Ellison

o An Measures Plan that addresses the threats, uses the strong points, attains the needed information and improves position while using the powerful and influential decision-makers.

The degree to which you can address these will really highlight the validity and accuracy range of your probability.

Now go forth and forcast.

And today I invite you to learn more.
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Forecasting future sales is one of the most difficult areas for many companies. The challenge is to provide consistent and accurate advance information that could be used by production, stock and service managers to plan for future demands.

In practise, much of the predicting work currently undertaken is very random, if not haphazard guess work. It is dependent on highly subjective reports of the sales people, often under short phrase pressure to predict acceptable levels of achievement in order to meet targets.

As a result much of the medium-to-long-term sales order forecasts are often consisting of business projections based with nothing more scientific as compared to optimistic guess work rather then on disciplined and natural assessment of likely the conversion process of sales from person customers.

Companies spend thousands of pounds and hundreds of man hours on their annual, quarterly and month-to-month budgeting and forecasting activities.

Financial supervision techniques and systems have developed apace lately 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 presumptions and predictions. Too often companies fail to spot in advance negative trends or competitive activity which impinge on their ability to win brand-new orders.

Most forecasting, in the biggest sense, is based on old information with some allowance for highly subjective judgements such as the economic climate, trends construction business etc.

The Achilles heel of even the most significant business planning methodology is an almost uncritical acceptance of what the sales team predict as imminent or extended 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 usually provided.

Frequently the sales predictions - short, medium and long term - are highly know. They depend on that sales team's personal, often highly subjective views, and frequently reflect the pressure with regard to 'certain sales levels to be achieved'

Predicting the true chance of winning an actual order will change the closer the shopper gets to placing the 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 simply discounted. There is no discipline or consistency in the operation. Orders 'lost' now is going to be replaced by 'new' opportunities conveniently a few months down the line. These new 'orders' will be lost as the time for their confirmation gets closer. Thus, the organisation never has a realistic assessment of it's potential sales.

What is missing is a management awareness of what is really taking effect to 'vapour sales opportunities' and a complete lack of process and discipline in predicting the real possibility of winning specific orders consistently. These 'vapour sales opportunities' represent unsubstantiated sales opportunities which can amount to anything close to half of the 'pipeline' business being reported to management from month-to-month.

About the Author

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