How To Do Sales Forecasting Accurately | Sales Manager Training | HRDC Claimable Malaysia

One of the things management expects of salespeople is bottom-up feedback 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 and expectations for sales increases from senior management.

Salespeople are better equipped to forecast future sales results in their territory if they are in touch with their customers’ and prospects’ needs, problems, budgets, changes, and competitive initiatives. 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:

1. Present sales levels per customer or prospect

2. Future needs, concerns, and desires of customers and prospects

3. Competitive activities in the sales territory

4. General market conditions

5. Quality of the relationship with their customers

6. New or future product or service opportunities

7. Whether the territory has potential or is a maintenance territory

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:

1. People buy when they are ready to buy—not when you need to sell.

2. Ignoring competitors’ initiatives will ensure a lack of integrity in your results.

3. You can’t make up for poor sales skills with extra effort or time.

4. Numbers pulled out of the air will haunt you later.

Turn It Around

Blend optimism with reality when forecasting.