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Forecasting as a sales management tool

# 58 November 2018

Bilden (kopia 2)

You can create a higher effectiveness in your sales organization by involving the sales people in the forecasting process. Quite often companies use only their sales managers for forecasting, as experience typically tells us that sales people are not a good source for accurate forecasting. There are, however, some compelling reasons why sales managers should involve the sales people.

The main reason is to make the sales people accountable and to get them to assume the responsibility for their financial results. By asking the sales people what their sales will be, the sales manager increases the probability to get results. This utilizes the strong motivational effect from what in psychology terms is called commitment and consistency. People have a desire to be seen as consistent when it comes to words, opinions, attitudes and actions. If we have said that we will win a deal, we are more motivated to make that happen.

For the forecasting process to be an effective, the following points need to be addressed: