Dec17
Sales Forecast Advice by Nick Moreno
Posted by Nick in Corporate Sales Training | 0 Comments
File under Forecast Sales With Accuracy, Forecasting Sales, Sales Forecast, Sales Forecast Accuracy, Sales Forecasts, Sales Prospecting
How To Forecast Sales
by, Nick Moreno
The Key To An Accurate Sales Forecast
This article focuses on forecasting sales at a rep and branch level. The monthly pressure on Sales Managers and sales reps can’t be overlooked when it comes to sales forecast accuracy. So, let’s take a look at sales forecasting and how to accurately forecast sales.
There are many elements to consider when forecasting sales at a Vice President level but at a branch or rep level there is only one simple question to answer. “Will this sale close by the end of the month?” Despite the simplicity of this question we tend to make forecasting sales a complex exercise in the effort to drive sales forecast accuracy. Many find a sales forecast difficult to project because they don’t understand how to forecast sales.
Sales Forecast Accuracy
One method used in an attempt to forecast sales with accuracy has to do with “probabilities”. Lets say you have a $100 potential order and you feel you have a 50% probability of closing it by the end of the month. In that case, you would forecast $50. Although many sales organizations use this method of forecasting sales, I never felt it was a viable way to generate sales forecasting accuracy because the end of the month you will not close $50. You will either close $100 or zero. Using “probabilities” at a branch level only drives inaccurate sales forecasts. I guess “not being too inaccurate” is good enough for the companies forecasting sales using this method. These are better ways to project a sales forecast at a branch level and that’s why this type of method to forecast sales is not included in my corporate sales training.
The Truth About A Sales Forecast
To best understand how to forecast sales with accuracy, we have to look at the pressure to forecast that quota will be achieved. Too many sales managers and reps start with their sales quota and then try to figure out which prospects will “hopefully” close so that they will achieve their monthly quota. There is no room for the word “hope” when it comes to a sales forecast. Sales forecasting accuracy is only achieved when the sales forecast is based on prospects you “know” will close. That’s key to an accurate sales forecast and a big part of my sales training.
Projecting Sales In A Sales Forecast
When all is said and done, there is only one way to accurately forecast sales. You need to have more than enough prospects to achieve your sales quota. When you have a rich sales funnel packed with qualified prospects, your sales forecast accuracy is no longer a problem. Instead of working with prospects you hope will close, you’re now working with prospects you know will close. Successful prospecting takes the guesswork out of a sales forecast sales.
A sales forecast should also not be based on the hope you will complete all the work required to close a sales by the end of a month. When you have more than enough prospects, you have the luxury of forecasting accounts that all ready have your contracts or order forms and told you to expect their business. In the final analysis, the problem is rarely with sales forecast accuracy. In most cases, the problem is with your sales prospecting program.
The Sales Forecast Cure
The best way to cure a sales forecast accuracy problem is to get serious about your sales prospecting efforts. Once you have more than enough prospects, you’ll find it much easier to forecast sales with accuracy. I urge you to discover new and creative ways to get more sales prospects. Consider improved cold calling techniques as a way to increase sales activity and improve your sales funnel.
I hope all your sales forecasts are accurate sales forecasts!
Make It A Great Day!
Nick Moreno, Sales Coach
National Sales Center, Sales Training Company
FREE SALES PROSPECTING ARTICLES AND ADVICE
ADDITIONAL ARTICLES OF INTEREST
Sales Training DVD Packed With New Sales Techniques
Training In Sales For Beginners
Close More Sales, Know When To Keep Quiet!
Sales Consulting For Peak Performance
5 Sales Tips For Selling In A Slow Economy
Product Sales Training Unplugged
Leave a Reply