Words of wisdom for this week.
“What disturbs me is not the way things are, but rather the way people think they are.” Epictetus
One of the activities management expects salespeople to provide is bottom-up help in the area of sales forecasting. Unfortunately, many sales managers shove their sales forecasts down the throats of their sales staff due to the demands or expectations for sales increases by senior management.
Now I am not inferring that senior management should not play an active role in determining the sales expectations of their salespeople. I am only suggesting that a bottom-up approach is a far more accurate evaluation of what a sales territory can or will produce if the salespeople have the ability to accurately access their territory potential.
Salespeople, if they are in touch with their customers and/or prospects needs, problems, budgets, changes and competitive initiatives, are far better equipped to forecast future sales results. In order to come up with numbers that are reflective of ‘the real world’ and satisfy the demands of management, salespeople must understand the factors that impact their future sales results.
Some of these are:
- present sales levels per customer/prospect
- future needs, concerns, desires of customers/prospects
- competitive activities in the sales territory
- general market conditions
- the quality of the relationship between the salespeople/organization and the prospects/customers
- new or future product/service opportunities
- whether the territory has real potential or is a maintenance territory
- the sales competence of the salesperson
- the self-image of the salesperson (the ability to be honest with management with territory limitations and issues)
- the relationship of the salesperson with his/her manager
There are many others, but these tend to determine the accuracy of any sales forecast whether weekly, monthly or yearly.
The key premises to remember when forecasting are:
- people buy when they are ready to buy – not when you need to sell
- ignoring competitive initiatives will ensure a lack of integrity in your numbers
- you can’t make up for poor sales skills or attitudes with extra effort or time
- giving management the numbers they want when they are not possible or realistic is to only postpone the ultimate frustration of everyone
- just pulling numbers out of the air will haunt everyone later in the sales cycle
It’s unfortunate that in many organizations the top-down sales expectations or forecasts are not in any way in touch with reality in the marketplace. I have talked with hundreds of salespeople during my sales training career who have generally all had the same attitude, “If management was really in touch with what’s going on life would be a lot less stressful for all of us.
The best approach to an integrity based sales forecast process is to include the “truth” of a territories potential and challenges and not just the wishes of sales management with the needs, resources and support of sales management. In other words it’s a blending of bottom-up reality with the longer view of senior management in mind.
About The Author:
Copyright: 9/2009 Tim Connor, CSP - Connor Resource Group
Tim Connor, CSP World renowned Speaker, Trainer and best selling author of 75 titles, Box 397, Davidson, N.C. 28036 USA, 704-895-1230 (voice) - 704-895-1231 (fax) - tim@timconnor.com (email) - www.timconnor.com (Website)