It’s the end of the quarter and what do sales managers want? Easy answers. Which sales that their people promised will close this week? And if not, why not and when will they happen?
I believe a robust pipeline is the key to success 99% of the time. It is the lifeline of the company. To predict if the company will meet its numbers, look no further than the pipeline. Right? Well, that is assuming that the pipeline is accurate, but is it?
Sellers must first build their pipeline, then ensure as much accuracy as possible in the numbers they offer. Then the sales manager is responsible for communicating the combined pipelines of their team to upper management. It’s common for sales managers to trust some of their folks’ numbers but may find others not so reliable. In other words, the problem is with those salespeople who are too optimistic, then over-promise and under-deliver.
A key component of a manager’s role is to work with their salespeople to manage and report their pipeline. Trust in your people is paramount and that happens over time. But there is a fine line between asking questions to ensure accuracy of the pipeline and turning it into an interrogation. Tough questions may be necessary with those that have a weak pipeline and are trying to hide behind poor activity.
As a sales manager I believe there are four expectations you can set with your salespeople to ensure pipeline accuracy and predictability.
First, how long has this opportunity been in the pipeline? If it has been forecasted for six months or more, what is holding it up? How often is the salesperson meeting with the customer? If a sales opportunity is to move forward, the salesperson should be in regular contact with the decision makers ensuring they have all the information they need to make their decision. Customers can be cautious on moving forward since change is always risky. The larger the price tag, the more risk there is. Managers wonder, “Will this decision deliver the needed ROI?”
Second, is procurement involved and what are their needs before they’re ready to say yes? Do we need to sign their contract which is a part of their criteria for doing business? I have seen many deals derailed near the end of the sales cycle when the customer announces that everything is fine and now, we need to get procurement involved. Well, that can add another three months to closing the deal. Procurement doesn’t need your solution. What they need is to follow their way of measuring their success, which is getting the best discount possible and having the vendor sign their terms and conditions. This can lead to a huge delay. The salesperson needs to ask if procurement or purchasing will be involved in the decision.
Read more . . .
https://stuschlackman.com/sales-strategy/how-accurate-is-your-pipeline-forecast/
Stu Schlackman is the Relationship Selling Expert. After more than 20 years in corporate sales, Stu formed his sales training firm to focus on helping his clients achieve superior sales results. Leveraging his competitive nature, he focuses on training and coaching sales and service teams to reach peak performance.
Before starting his own company, Schlackman was instrumental in increasing revenue and growing the client base of large corporations such as Capgemini, EDS, and the former Digital Equipment Corporation. His focus on relationship building led his sales teams to exceed sales projections by more than 30% percent annually.
Today, Schlackman uses his “Four People You Should Know” Personality Styles Assessment to help companies build high performance teams and increase sales by connecting with the four different personality styles.
www.StuSchlackman.com
Stu@StuSchlackman.com
Follow me on
• Facebook
• Twitter
• LinkedIn
0 Comments