CSO Insights have been tracking sales forecast accuracy for many years in their annual sales performance optimisation study. The latest results - drawn from over 2,000 organisations from around the world - showed that fewer than 50% of forecasted deals were closing as predicted. So average sales forecast accuracy remains less reliable than flipping a coin.
Sales managers report that a growing number of apparently well-qualified opportunities are ending not in a clear win or loss but in the prospect deciding to “do nothing”. The wasted effort associated with these deals - many of which were by any rational analysis never likely to close - is truly staggering.
Analysis suggests that inadequate sales qualification is a significant factor in poor sales forecast accuracy, as is the failure to separate issues of fact (what stage has the prospects actually reached in their buying decision process?) from issues of judgement (what the are the realistic chances of getting a recognisable order in the current forecasting period?). These issues are compounded by misguided attempts to apply a probabilistic approach to forecasting.
What sets us apart?
We help clients apply evidence-based techniques to improve opportunity qualification and systematically improve sales forecast accuracy, increase sales win rates, shorten sales cycles, and reduce the number of “no decisions”.
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If you would like to find out how we could help you to improve your sales forecast accuracy, please contact us here or call us on +44 118 975 0595. Or you’re not yet ready to have a conversation, we encourage you to stay in touch by subscribing to our blog.