Improve sales forecasting to improve sales results.  Don’t rely on the old “quote and hope” philosophy. Forecasts based on optimism and best-guess can hurt everything from the commission check to supply-chain management, especially when they don’t come true. Forecasting can be done more accurately. Change the way you forecast with these five SMART Tips:o:p>

Tip #1:  Make it objective.  Too often, sales people forecast what they hope will happen, and what they think will make them look good.  That’s too subjective.  Create objective ways to forecast based on defined stages of the process.

Tip #2:  Make it clear.  If the forecasting criteria are unclear, then my 10% probability could be your 50% probability.  Accurate forecasts, even if they're unfavorable, are much more valuable than inaccurate ones.

Tip #3: Probability comes from the client’s actions.  Doesn’t matter if you or your team wrote a great proposal, delivered an outstanding presentation, or wined and dined the client.  What matters is the client’s response.  Use client actions as an unambiguous way to define the stages of the sales process - they asked for information, they asked for a proposal, they negotiated terms, they placed an order, etc. 

Tip #4:  From 4 to 8.  Fewer than four client actions are not enough to define the stages of the sales process.  More than eight are too many to track.. 

Tip #5:  Probability never exceeds 95%.  It’s not a sale until the check clears.  Up to that point, it’s still a forecast.  Things can change even after the verbal commitment.

Bonus Tip #6:  History predicts timing.  Want to shorten cycle time? Track performance based on completion of sales stages for several months, to figure out the real length of the sales cycle.  Then you can work on the underlying process to shorten it. 

SMART Tips illustrate Selling the SMART Way®, our proven methodology for sales effectiveness.  Adopt the SMART Way for your business and we will help you define sales stages, improve forecasting, shorten cycle time, increase top-line and bottom-line results, and lower the overall cost of the selling effort.  Contact us at info@bristolstrategygroup or visit our website for more information on Selling the SMART Way.

Tips for Nonprofits

Nonprofit organizations have to create revenue streams too.  Fundraising is a sales strategy.  If you want to fund your organization with grants, corporate sponsorships or individual donations, learn Fundraising the SMART Way™. This month’s SMART Tips apply to nonprofit efforts as well.  For more information about our nonprofit consulting services and training programs, visit our website, call us at 305-576-6236 or send an email to info@bristolstrategygroup.com