At Growth Process Group, we focus on forecasting processes and methods for complex sales scenarios involving large transactions with medium to large companies. A common definition for forecast accuracy is the percentage of the bookings that were closed in the quarter as compared to the forecast at the start of the quarter. Some companies use a monthly metric.
We develop Sales Process Models that include the desired customer commitment action at each stage. When you measure pipeline position by customer action (rather than sales optimism), you have a much clearer view of the pipeline quality. We also work with sales management to define acceptable alternative paths for deals.
Another important element is to set up rule sets for when to stop selling. If your sales team is effective at terminating sales cycles early for deals that are unlikely to close, they can focus on the high quality prospects and sales productivity improves. Doing this well means you have to develop good criteria for deals that are good fit vs. those that are not.
To improve Forecast Accuracy, we develop and apply Ideal Customer Criteria, Qualified Lead Criteria, Sales Cycle stage exit criteria and Forecast Rule Sets that are continually improved over time. The result is improving forecast accuracy.
Growth Process Group can improve your Forecasting Process and Forecast Accuracy.