Why is Forecasting Such a Challenge for Salespeople?
Paul Routley
Recruitment Specialist specialising in Sales, Marketing, Creative & Leadership roles Helping clients find the perfect candidate in the UK & internationally-helping candidates to find the perfect role.
Sales forecasting is critical for business, but even more critical for business owners, board members, and directors. It helps to anticipate future sales trends, plan resources, set targets, and make informed strategic decisions. However, sales teams often struggle with accurate forecasting, leading to missed opportunities problems, and financial challenges. In this article, we will explore the reasons behind the common pitfalls in sales forecasting and discuss ways to improve accuracy and effectiveness.
The importance of sales forecasting
Sales forecasting provides valuable insights into sales performance. It allows businesses to allocate resources effectively, manage inventory levels, and optimise production capacity. Accurate sales forecasts enable strategic planning, budgeting, and goal setting, aiding companies in achieving their targets and staying competitive in the market.
Poor accuracy leading to inconsistent Sales qualification
Sales teams often struggle with qualifying their opportunities consistently and when combined with inconsistent processes forecasting becomes more challenging. It becomes challenging to compare and analyse data across different periods or regions without standardized practices and processes. Establishing clear guidelines and best practices can enhance forecasting accuracy and reliability.
Lack of accountability
In my opinion, one of the biggest factors that cause a downfall in forecasting is a lack of accountability, what I’m about to say is not going to be popular but it needs to be said, too many salespeople are simply not willing to be accountable for their sales figures, as salespeople we are accountable whether we like it or not and we have a responsibility to deliver the number we have been targeted
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1 年Having had a life in sales. Sales targets should come from the top. What sales does the company need to meet its own objectives. Then these should be agreed by all involved. And all relevant parties agree their roles and responsibilities. Most sales people will complain that their targets are too high, ... but then the good sales people will hit the targets,, and some will exceed them. One issue is that poor sales managers will allocate targets that are not achievable or are unrealistic, for any one pf many reasons.... and then the business suffers.
Deal Shaper, Sales Leader, Entrepreneur, Consultant in high impact sales performance. Global Supply Chain Experience
1 年Hi Paul, thanks for sharing and full article puts the points across well. Your last point (stirring the pot) is about sensible and agreed targeting, so a decent business process involving sales and marketing that drives shared accountability for sales targets throughout an organisation Once accepted, ownership follows. In summary for me: 'qualify out or win' ??