Top 5 Forecast Killers in Sales
Sales forecasting is crucial when it comes to generating accurate revenue projections. When it comes to preventing mistakes there are several key forecast killers to watch out for so you can keep everything in your sales pipeline flowing smoothly.
Timing is one of the most important components in anything. Without perfect timing, there is a much greater possibility for things to go awry. When planning your forecast, you should take into consideration the opportunity age versus the average sales cycle length. This examination will help determine if there is enough time left in opportunity for your company to go through a typical sales cycle and close on it.
The potential value of a lead helps you determine the proper plan of action to get the lead to close. You should be able to look at past performance on similar jobs to see how likely and how quickly you can get the deal completed. By examining similar scenarios you should be able to set a time frame to avoid clogging your pipeline. If the value of the lead is not high enough to overcome the opportunity cost then it might not be worth pursuing the lead.
Imagine your lead is funneling along great and you think you’re about to close and they just kind of stop. EEEK! It’s important to watch for any factors that could cause your lead to stall or be hesitant about completing a purchase. You should first identify what a stalling or hesitant lead looks like versus slow moving lead. You can address these jobs by having your SDRs reach out to help propel them through your pipeline. Having a mutual close plan will also help your lead and SDR be on the same page, combating any stalls.
Average Deal Size
It’s important to be aware of the average deal size your company is typically able to win to ensure you can compare it to the expected opportunity size of your current lead. When it comes to treating an opportunity different, if it is 3 to 4 times larger than your average, it drops in size greatly. If your SDRs aren’t treating the opportunity differently then it can easily become a risk.
Ideally a lead is nurtured until the deal is closed. This way you are able to devote the time and effort an opportunity needs to end with a close. Because of the nurturing a lead needs, adding a late addition to your pipeline can result to issues. These leads typically need to be watched carefully and often treated differently since they are going into your pipeline late. Often these opportunities will need the same nurturing your current leads received. Don't miss out on giving those late additions the nurturing they deserve!
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