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We are all aware of the importance of CRM systems and their value to businesses. But what about the important area of reliable sales qualification and forecasting which most existing sales contact packages do not comprehensively address? The need for reliable and up to date information on short, medium and long term sales potential is a major business opportunity for you.
Consider the problem of many companies, even some of the best in the world. They track their clients and key contacts more or less effectively. They are efficient at taking orders and they have finely tuned systems to help them control the manufacturing, supply and support processes. But there is a hole, for some it is a big black hole and one that potentially threatens their ability to plan and manage their businesses efficiently.
The hole is in the area of accurate and consistent sales forecasting. There is a gap between identifying of potential customers and individual orders or contracts and the realistic prediction and tracking of the likelihood of winning each individual piece of business.
Most companies however sophisticated their customer records and financial systems have no consistent system for predicting future business. They still rely on the highly subjective day to day, assessment of their sales people in predicting what orders are imminent, what is in the pipeline.
Those experienced in working with sales people will know that their confidence in getting an order can change from day to day and frequently diminishes the closer the customer gets to placing the order.
This means that there are actually millions of pounds of sales opportunities being reported at any one time, which fail to materialise but many are actually being taken into account by company planners.
Why is this? The major problem is the lack of discipline, consistency, accountability and, even, sophistication in the forecasting process.
Businesses need to map out their sales process so that all sales personnel can understand the objectives and strategies in achieving the objectives. This is one level higher than activity management. How people achieve their objectives can be different but the criteria in assessing whether we dealing with a good sales opportunities and the progress we are making within that opportunity remain the same. We need to know how big and qualified is the pipeline, which are the key opportunities that resources should be deployed, what issues could arise that could disturb the sale, and lastly how are we doing towards our sales objectives?
Businesses need systems that allow them to map, manage and refine their sales processes as and when necessary and not once a year when the business plan is being produced. We are in a global economy that is changing by the minute and we have to adapt to succeed. We need systems that will monitor the health and well being of a business 24 hours a day and let us take evasive action well ahead of impending crisis.
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