5 Steps To Forecast Large Orders
Nalin Mehta
?? CEO & Entrepreneur Coach for Automotive & Manufacturing Companies | Former MD and CEO of Mahindra Truck and Bus Division | Deliver results without burnout | Elevate Leadership Presence ??
Forecasting in high-value B2B sales can be a complex task, but by breaking down the process, you’ll set yourself up for success. Here’s a simple, actionable approach:
Step 1: Map Your Purchase Process
Start by mapping the stages in your business’s purchase process. Think about the journey from pre-tender consultation to order placement.
?? Why? Mapping out the steps is already half the battle—it sets a clear foundation for reliable forecasting.
Step 2: Use Data to Forecast
Leverage your data on average sales cycles. For instance, if a cycle usually spans six months and your rep has been working with a prospect for three, there’s a 50% chance of a close.
?? Tip: This objective approach reduces guesswork and keeps forecasts grounded in historical data.
Step 3: Refine with Probabilities
Assign probability percentages to each sales stage. Adjust these numbers based on past results and the likelihood of success at each stage.
?? Example: After a financial bid opens, if you’re positioned well, assigning a 70% success probability based on similar cases is a reasonable refinement.
Step 4: Layer with Questions
Dig a little deeper with questions to assess each situation—such as your alignment with specifications, your willingness to meet price points, any existing client relationships, and geographical benefits.
?? Reminder: Make small adjustments based on answers to stay accurate and realistic.
Step 5: Continuous Refinement
Regularly review and refine your forecasting. Look at past results, adapt to market changes, and gather feedback from your sales team.
?? Goal: Continuous improvement will make your forecasts more precise and help you make better, data-driven decisions.
Key Takeaways:
1?? Map your purchase process to clarify stages.
2?? Use data on average sales cycles for objective projections.
3?? Refine your forecast with probability percentages for each sales stage.
4?? Ask relevant questions and adjust probabilities as needed.
5?? Continuously refine your process for ongoing accuracy.
Stay ahead with effective, data-backed forecasting! ???