June 10, 2022 – Accurate sales forecasting is a chronic challenge that most organizations face. If you are hoping to accurately forecast sales for the next quarter, you need to understand what might be causing the disparity between your sales forecasts and the results of your efforts. Here are some obstacles to look out for:
- Lack of manager training
Front-line and second-line sales managers are largely responsible for sales forecasting, but many organizations fail to provide the proper training. New sales managers may have come from previous roles without a forecasting requirement, or a different industry where the forecasting is measured differently. Either way, CSOs need to partner with sales operations and sales enablement leaders to establish a better onboarding and development process to help sales managers make more accurate forecasts.
- Failure to change
There are several ways to make a sales forecast, like the classic sales funnel stages. Eventually, these methods need to be evaluated for efficacy. If they aren’t working, it’s time to find something new. The same can be said for any outdated sales processes, which can be a symptom of inaccurate sales forecasts. This failure to change can be a major trigger for sales forecasting inaccuracy.
- Not using data-driven decision making
In the digital age, any company that isn’t relying on data to make better, more informed decisions will be left behind by their competition. While manager judgement might have been an effective method in the past, leveraging data is the only way to make sure that your forecasts are accurate for your industry.