|What is covered in this article…
At the end of this lesson, we are going to discover the following:
Sales forecasting is the ability of an organization to predict what the outcome of their effort would be in a given year. Forecasting will enable an organization to have a clear and timely idea of their expected revenue and what their customers’ demand will be like it will help the organization to plan their sales and this will enable the organization to close more deals, generate more profit and ensure that the organization is able to monitor their sales in order to ensure the sales revenue is been maximized.
Sales forecasting is a very important tool in SFA. It will enable an organization to know their sales potentials and it will also embellish them with relevant information that they needed in order to meet their customers at the right place with the right is been manufacturing process of the right place with the right product and services.
Sales forecasting allows customer and sales agents to list their projected needs so that these can be accounted for in the manufacturing process of the organization. It is one of the things that organizations have to put in place in order to have a successful sales endeavour.
Sales Funnel Management
A Sales funnel offers a bird’s eye view of sales opportunities and gives the sales manager basic information about their sales endeavour They also work closely with lead management and opportunity management in an organization.
In any organization, Leads that have financial potentials are given an estimated time for closure of the deal. Sales funnel uses time and territory management to qualify the leads as suspect, prospect and sponsor.
One basic thing about sales funnel in the SEA is that it will allow the organization to have access to basic information concerning the progress of leads and the stage they are. This will enable organizations to have strategic planning and make informed decisions that will allow them to close deals faster.
Sales funnel will also make sales teams be more efficient, it allows them to be more timely in their dealings. It will also allow them to be more consistent in their operation as they will have a singular and uniform view of customers across the organization.
Sales Pipeline Management
One point to consider about CRM is that it, ‘Ail enable you to predict demands from your customers. But it is rather unfortunate that many organizations do not understand this basic feature of CRM.
The sales pipeline is used in CCL to explain the established sales processes that an organization has established for them. Every organization whether product or customer-centred must have processes and protocols that they follow in carrying out their sales processes.
You should know that the sales processes can be customized to cater to various sales process needs. This includes prospecting, potential lead, and qualification, opportunity, building a vision, shortlisting, negotiation and closure.
In managing the sales forecast, you should embrace best practices in order to earn tile trust of your customers. One of the things that you have to do is that you must remove bias and subjectivity from the forecast. You must be able to look at your customers objectively and decide where they fit into. This should not be narrow-based or parochial in nature.
The organization should also be able to use past actual sales to determine the current forecast. The organisation can also look into how their sales were in the previous vent to determine the likelihood of increase ~ decrease in sales in the present year.
Objective forecasts are more accurate and predictable than forecasts that are being manipulated with subjective weighting or probabilities from sales representatives, the management or other executives.
Pipeline management tries to extract data from sales forecasts and then plan their sales activities in order to align with an outcome of their prediction.
At the end of this chapter we have been able to discover that:
- Sales forecasting is the ability of an organization to predict what xviii be the outcome of the sales endeavour in a given year.
- Sales funnel shows sales opportunities and give sales stakeholders the basic information that they need about sales endeavour
- Sales Pipeline Management shows the sales processes that an organization has been able to establish with their customers.
- Sales forecasting must be objective in its analysis.
- It should also use past sales results to predict the future.
- Discuss Sales Pipeline Management.
- Differentiate between the three types of leads.
- What is Sales Funnel Management?
- In your own view, what are the reasons why CRM as a course and a concept is not popular in Nigeria?
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Adeniyi Salau is a Digital Marketer, Project Manager and SEO Expert of repute with about a decade of Blogging and online marketing experience. He is always ready to share his experience with others.