Sales Forecasting as a Competitive Advantage
Can sales forecasting be a competitive advantage in your sales team operations? It can if you adopt the principles we explain in our Sales Probability and Process Management theory.
Most people use sales forecasting as a tool for estimating future income, without a great deal of confidence it has to be said. They’ll also use it for pressurising sales representatives to work harder, make more calls, push more prospects, put it on the line.
Limiting the use of forecasting to these obvious, if somewhat simplistic, ends is missing a major trick first recognised by Henri Fayol over a hundred years ago. In his technical thesis on management theory Fayol recognised the functions of management as forecasting, planning, organising, commanding, coordinating and monitoring.
Today we can shorten the description as Forecast, Plan, Act and Review.
Applying Fayol’s concept to sales forecasting simplifies the process whilst simultaneously improving the accuracy of the forecast, and also showing where the sales process can be improved in what the Japanese would describe as a continuous improvement loop.
Of course no two businesses are the same and so it’s unlikely a simplified process can be optimal for all of them. However, once you’ve understood the concept of your sales process, Sales Probability and Process management will equip you to adapt the theory to fit your own style.
Making the forecast, planning what’s needed to improve chances of winning each deal, implementing that plan and reviewing the results makes the feedback loop for understanding what works and what doesn’t. Learning the lessons and making changes gives any sales team a competitive advantage over the opposition.
Find out more about the technique, why it works and how to us it on our sales management tutorials page.
Of course it involves extra work, but so does any improvement in a business’ bottom line.
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Tagged as: Business, Competitive advantage, forecasting, Henri Fayol, Management, Probability, sale, Sales process
