Category Archives: sales forecasting
The Real Moneyball: The Importance of Analytics to Improve Sales Forecast Accuracy
The term “moneyball” is best known for applying an analytical approach to evaluating players on the baseball field, as written about by Michael Lewis in his book of the same name. The concept of moneyball can also apply to the field of sales, where analytics are used to improve sales forecast accuracy.
In my role as Director of Sales Operations at Richardson, I manage support functions that are essential to sales force productivity. When I took on this role in 2012, my primary goal was to improve sales forecast accuracy by providing insights into performance trends, identifying gaps, and recommending ways to fill those gaps.
To do this, I had to develop meaningful reports that would highlight trends and key deals, while assisting the sales team in managing the pipeline. These reports also had to give senior management the detail and visibility needed for decision making on additional strategies and whether to become personally involved in specific opportunities.
To me, there are two key aspects of sales forecasting. One is the analytics of deals in the pipeline. I use these metrics as a pressure test to qualify the risk of the forecast. This is important because, at the end of the day, if senior leadership is making decisions about investments, incentives, or promotional programs on the basis of information that I’m providing, I need to make » Continue Reading.
According to CSO Insights, sales forecasting accuracy hit an all-time low of 46% in 2012. Just about every business and industry experiences peaks and valleys in their sales cycles, but, even with large investments in sales and marketing automation technology, the problem is getting worse and not better. Did you just throw good money after bad in hopes of achieving sales forecasting nirvana? What on earth is going on?
New Whitepaper from Richardson: Using Verifiable Outcomes in the Sales Process to Change and Track Behavior.
The use of verifiable outcomes has become more widely adopted by companies engaged in complex sales. These measures provide visibility into the sales process, pipeline performance, and forecasting. The problem, however, is that most of these verifiable outcomes are lagging indicators of past performance, not leading indicators of future achievement. Richardson’s new whitepaper explores how to identify and use verifiable outcomes that are leading indicators of customer engagement.