Business Development Rants and Resources

Quantum Mechanics in Sales Forecasting

I am not sure that this doesnt simply qualify as a Rant. I mean, I feel like I am ranting, but that is a common feeling for me as I am pounding at my keyboard.

Often when working with a sales or marketing manager in setting up their SalesinSync Lead Management System system I will suggest setting up their Probability (of close) percentages in increments of 10, i.e. 0%, 10%, 20%, 30%, etc. Every once in while someone will say, “oh, come on, nobody can guess that close. Gimme 0%, 10%, 25%, 50%, 75% and 100%.” Sometimes the choices are even more limited, like 0, 35, 50, 80.

Okay now I KNOW that this is a rant because it doesn’t happen often. But when it does it is irritating. The point of ALLOWING SALESPEOPLE TO GIVE THEIR BEST GUESSES is that, collectively, the data will be more accurate and precise. This is a simple statistical exercise. This will always be the case unless some extremely weird mechanism is in place due to bad management elsewhere. The sum of all these supposedly problematic uncertainties makes for a the BEST guess, most of the time!

So why not have a dropdown that allows 1 percentagepoint increments? Simply because then it becomes a bit of a farce and salespeople will not like using the interface. Our suggestion is to provide to the sales force the highest level of granularity that is reasonable. Maybe it is in 5 point increments. Who knows? There is simply no reason to force someone to select a number that does not reflect what they feel. Frankly, it can be frustrating and cause the user to question the process, as well as the value of the information. Once that starts happening, the game is lost because salespeople want to be making money and not punching numbers into a system they don’t believe in

May 6, 2012 Posted by | Lead Management and CRM | , , , | Leave a comment