Every week, I hear from business owners who are frustrated in the quality of the sales forecasts presented to them by their salespeople and sales managers.   In fact, the situation is getting worse and is exacerbated by the slowness of the economic recovery and the lackluster performance of mediocre salespeople.

I’m a big believer in the power of optimism and positive thinking, but there is absolutely no place for optimism when it comes to forecasting new sales.

If you are having difficulty believing in the quality (or quantity) of the sales projections you receive each month, it is likely that whoever is doing the forecasting is missing some very fundamental information.   Fortunately, there is a straightforward remedy to fixing this situation. 

For starters, a salesperson should never forecast a piece of business if he/she does not have a commitment to purchase from the Real Decision Maker (RDM) and crystal clear answers to the following questions (at a minimum):

• Does the RDM perceive a need?
• Is he/she willing to fix it?
• Do we really have a clear understanding of why the RDM must act now? (hint:  without urgency derived from personal pain, don’t hold your breath…)

• What is so great/special about us in the eyes of the RDM? (besides the fact that we think we’re the best)
• Does the RDM trust us more than our competition?
• Exactly how much money is available to spend and by when?

In addition, you will want to be sure that your salesperson has been identified to be the Most Valuable Player – a differentiated trusted advisor who truly rises above a field of smooth talkers and peddlers. 

Finally, never accept assumptions.  If any assumptions have been made, have your salesperson go back and verify them to be facts.   Checking assumptions is one of the most critical areas where real sales work resides.  If you have an existing salesperson that continues to accept stories for truths and refuses to verify that their assumptions are indeed facts, I would recommend that you find a replacement.

The steps above will go a long way to improving your forecasts.

To request a comprehensive checklist to eliminate all surprises from your sales projections, email GrowMySales@Zthree.com and write “Improve My Forecasts” in the Subject Line.

Copyright ©   Joe Zente  2010.   All Rights Reserved.

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