Yet, optimism makes for poor deal value forecasting
Posted: Mon Jan 27, 2025 6:16 am
Deal Value
Win Probability
Close Date
When each of these elements is as accurate as possible, you get predictable and accurate forecasts.When sales leaders master coaching these elements, they will keep their fingers firmly on the pulse of sales performance and forecast accuracy will improve almost immediately.
Deal Value
The value of pipeline opportunities is consistently over-estimated by optimistic salespeople.
But, this is who they are and it’s a good thing. Optimistic salespeople out-perform pessimistic salespeople.
For this reason, sales leaders must provide regular and uae telegram data ongoing training and coaching on how to place value on deals. They must teach their salespeople the math.
Along with this, leaders must have the courage to step in and actively adjust the value of deals in the pipeline. Otherwise, deal values will be inflated and forecasts missed.
Close Date
Likewise salespeople have a very bad habit of detaching from reality when estimating how quickly they’ll close a deal. I have rarely met a salesperson who doesn’t believe that THEY have SUPER POWERS and can get ink faster than the sales cycle indicates is possible.
This detachment from reality also causes salespeople to skip stages in the sales process or believe that they are, for example, in the presentation stage when, in fact, they’re in the qualification stage.
With sales forecasting, timing is everything. If you are not accurately predicting when deals will close you have no hope for predictable forecasts.
Setting accurate close dates is a bit of art and science. There are variables like deal size, scope, deal qualifiers, stakeholder array, urgency, economic and market conditions, and competitors. Certainly, for some deals it is much easier to predict cycle time than others.
Regardless, sales leaders must be intimately involved with assessing and setting close dates. The good news, is this forces and compels sales leaders to coach deal strategy.
Win Probability
Close Date
When each of these elements is as accurate as possible, you get predictable and accurate forecasts.When sales leaders master coaching these elements, they will keep their fingers firmly on the pulse of sales performance and forecast accuracy will improve almost immediately.
Deal Value
The value of pipeline opportunities is consistently over-estimated by optimistic salespeople.
But, this is who they are and it’s a good thing. Optimistic salespeople out-perform pessimistic salespeople.
For this reason, sales leaders must provide regular and uae telegram data ongoing training and coaching on how to place value on deals. They must teach their salespeople the math.
Along with this, leaders must have the courage to step in and actively adjust the value of deals in the pipeline. Otherwise, deal values will be inflated and forecasts missed.
Close Date
Likewise salespeople have a very bad habit of detaching from reality when estimating how quickly they’ll close a deal. I have rarely met a salesperson who doesn’t believe that THEY have SUPER POWERS and can get ink faster than the sales cycle indicates is possible.
This detachment from reality also causes salespeople to skip stages in the sales process or believe that they are, for example, in the presentation stage when, in fact, they’re in the qualification stage.
With sales forecasting, timing is everything. If you are not accurately predicting when deals will close you have no hope for predictable forecasts.
Setting accurate close dates is a bit of art and science. There are variables like deal size, scope, deal qualifiers, stakeholder array, urgency, economic and market conditions, and competitors. Certainly, for some deals it is much easier to predict cycle time than others.
Regardless, sales leaders must be intimately involved with assessing and setting close dates. The good news, is this forces and compels sales leaders to coach deal strategy.