To put it mildly most companies sales forecasting just isn?t delivering, a staggering 90% of the deals do not close as forecasted even when the close probability is 75% or over. Even more astonishing is that 54% of forecasted deals are lost to competitors or to a no decision.
This is a trend that both senior management and sales management is aware of. And with the visibility now at executive level, sales is creating a demand for more accountability. Interviews with MD?s and sales directors indicate that companies can no longer stand idly by hoping the sales team delivers as indicated. Visibility and accuracy need to be improved. And if sales cannot do this we found that the Finance Directors would!
Here is annother shared dilemma where we see projected sales are actually a trailing indicator by the time you know if a deal will actually be won or lost the game is over! To this end Sales Directors and MD?s are turning to leading indicators in the sales process (e.g. ability for prospect to own product or service, timescale - is it on track, sales team ability to gain access to power etc). Every single metric available is playing an increasing role here as senior management grapple with the challenge of improving forecasting of sales more accurately so they can reap competitive and operational advantage and avoid problems associated with not knowing the true position of the pipeline and just relying on ?gut feel?.
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But it?s not the same for every organisation; many have used these challenging times to not only clear out dead wood but to build team strength. They are also starting to instil more team discipline. Today we can see Sales Directors & MD?s reasserting themselves in their demands for activity, pipeline reporting and adh
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