In today’s hyper-competitive and volatile business landscape, the power of foresight is everything when it comes to the growth and stability of a company. And as much as sales leaders would like, there is currently no magic eight ball they can ask to help predict how their year, or even quarter, is going to go.
That’s where uniting the art and science of sales comes in, aka sales forecasting. Nailing your sales forecast is crucial for accurately tracking your business’s performance and growth quarter-by-quarter.
Below are ten things your company can prioritize to help you see accurate quarter-by-quarter numbers with your CRM.
10 Ways You Can Infused Stability and Reliability into Your Sales Projections by Using CRM and Sales Forecasting Technologies
1. Use a CRM System
A customer relationship management (CRM) system can help you track your sales pipeline and provide insights into your sales performance. It can also help you identify areas where you may be losing deals or where you need to focus your efforts.
2. Analyze Your Historical Sales Data
Look at your previous sales data and identify patterns in your sales performance. Analyzing your sales history can help you identify trends and seasonal fluctuations that may impact your future sales.
3. Identify Market Trends and Monitor External Factors
Keep an eye on market trends that may impact your business. Look for emerging technologies, changing consumer behaviors, and economic indicators that may affect your sales. You should also be aware of regulatory changes or world events. Stay informed about these factors and consider how they may affect your business.
4. Set Realistic Expectations
CRM systems can help you collaborate with your sales team by sharing data, setting goals, and tracking progress. Consider factors like the size of your market, your competition, and your resources when setting your goals. By working together, you can identify potential roadblocks and opportunities and make more informed sales forecasts.
5. Establish a Sales Process
Establish a clear sales process that outlines the steps your sales team should take to close a deal. This process should include lead generation, lead qualification, product demos, proposal creation, and contract negotiation.
6. Monitor Your Pipeline’s Progress
Monitor your progress towards your sales goals regularly. CRM can help you track your sales pipeline, including the number and value of deals at each stage, the conversion rates, and the time it takes to move deals from one stage to the next. By analyzing this data, you can identify trends and patterns that can help you forecast future sales more accurately.
7. Build Flexibility into Your Sales Plans
It’s important to monitor your forecasts regularly and adjust them as needed based on changes in the market, customer behavior, or other factors. By using CRM to stay informed and flexible, you can stay ahead of the competition and achieve your sales goals. Revisit your sales process, marketing strategy, and product offerings to see what changes you can make to improve your performance.
8. Prioritize Transparent Communication with Your Team
Communicate regularly with your sales team to ensure everyone is on the same page. Share your sales goals, progress, and any changes to your strategy to keep everyone informed and motivated.
9. Segment Your Sales Data
Segmenting your sales data by product, geography, or customer type can provide more detailed insights into your sales performance. This can help you identify which areas of your business are performing well and which areas need improvement.
10. Collect and Organize Customer Feedback
CRM systems can help you collect and organize customer data, including their contact information, purchase history, and preferences. By having a complete and accurate database of your customers, you can better understand their needs and behavior and make more informed sales forecasts.
How Tracking Sales Performance Can Create Reliable and Trustworthy Revenue Projections
Your forecast drives everything in business forward, so that means that accuracy is key. Accurate sales forecasts and a healthy revenue pipeline are critical for every business, but they’re nearly impossible if you’re relying on guesswork, assumptions, and gut feelings.
Learn more about how you can empower your team to deliver accurate sales forecasts in our webinar, No Blind Spots: Build the Ultimate Sales Forecast with CRM.