The Top 10 Steps to Crush Your Sales Forecast

Times change but one constant is the requirement for monthly, quarterly and annual sales forecasts.  It used to be difficult to come up with that number but with the technology we have today, a single click in our CRM applications should show us the accurate number.  But there is always a lingering question that accompanies that click:  “Is that number accurate?”

Most sales leaders have to perform major tweaks to that number because the opportunities in the CRM aren’t up to date, the opportunities don’t contain all the information, and the probabilities and dates are likely overstated.  Despite playing with the data, the sales leader’s attempt to settle on a single, more realistic number will usually be incorrect. In my experience, there are three distinct types of CEO reactions to the constant epidemic of missed forecasts:

1. The revenue is fine, and the margins are high, regardless as to whether the team does or doesn’t hit the forecasted number, and they simply don’t care.  They are in the minority, but those CEOs are definitely out there.
2. Some CEOs have become so numb to this monthly ritual that the likelihood of an inaccurate forecast has been baked into their operation.  They expect it to be wrong.
3. Finally, the third group of CEOs has become more and more pissed off with every blown forecast and they don’t understand why it continues to occur or what to do about it.

That companies must do this dance each month, quarter and year is embarrassing.  Forecasts MUST be accurate, and the lack of accuracy is as much about ineffective qualifying as it is about inaccurate and/or outdated data in your CRM application, or the failure of sales leadership to hold their sales team accountable.  Fix those three issues and you’ve solved a huge part of the problem.

Here are 10 steps to put an end to missed forecasts:

1. CRM – Cut your losses and move to a salesperson-friendly CRM so that your salespeople will use it and keep it updated. If they see it as a tool to help them sell rather than a replacement for call reports, or a depository of meeting memorials, you’ll have real time data and that is the primary executive function for CRM.  I recommend Membrain.
2. Sales Process – Have your trusted sales consult customize and optimize your sales process.
3. Tools – Have your trusted sales consult build a predictive sales scorecard along with simple playbooks.
4. Integration – integrate the sales process, scorecard and playbook into your CRM.  It should all be working together inside your CRM.
5. CRM Training – Train your salespeople on how THEY can get the most out of THEIR CRM application and share your expectations/requirements as to daily use.
6. Accountability – Hold salespeople accountable for keeping it updated daily. It must be a condition for continued employment, or for releasing their commissions, or for expense reimbursement but under no circumstances is it optional.
7. Evaluation – Ask your sales consult to have your sales team evaluated in all 21 Sales Core Competencies so that you can identify capabilities, gaps and weaknesses and get them fixed.
8. Sales Management Training – Get comprehensive training for your sales managers on how to effectively conduct opportunity reviews and coach up your salespeople.  That is one of the primary sales management purposes for CRM.
9. Sales Training – Have your sales training company provide comprehensive sales training in all the areas identified in the sales team evaluation.
10. Annual Review, tweak and repeat.

Ready to get started?  Let’s go!