at sales meetings and what happens in the field.”
“In many companies, the sales force has no clue about what the strategies are,” agrees Abbott.
SYNC TO SWIM Another problem: “Most strategies were developed in a growth econo- my,” says Vandeveldt. “They haven’t been adjusted to reflect the current realities. That is a big reason why many strategies and forecasts aren’t in sync. Forecasts have been scaled back, but the strategies haven’t been revised to recognize that pros- pects are moving ahead more slowly with purchasing decisions.” Just what needs to be in a strat- egy that, in fact, serves to focus where marketing dollars flow and where the sales team puts its great- est energy? Goldner prescribes a starting place: For each account, there needs to be a written strat- egy – ditto for each product, and down the line of sales opportunities, by sector. The result is a blueprint
FORECASTING TIP Four Tips to Forecast Accurately
Poor forecasting is often a result of reps assuming that giving presentations or submitting proposals constitute a sales strategy. Sure, these activities are important to making a sale, but they miss customers’ perspectives and thus contribute to poor forecasts. After all, you might be checking off all the boxes in the early stages of your pipeline, but your buyers might be in the latter stages of their buying process. If that disparity isn’t ac- counted for, your forecast will be off. Effective pipeline tools are representations of two aspects of each sale: the events the seller has conducted or completed arrayed against the buyer’s incremental commitments to make a buying decision. Aligning these two points of view allows reps to quickly develop an event-oriented sales strategy that focuses on the pipeline milestones that most need addressing. To determine where buyers are in their decision cycle, consider the results of a 12-year study conducted on buyer behavior. The study found that buyers in complex sales
of where this business’s brightest opportunities lie – but don’t stop there, not today.
“Strategies need to be continually
reassessed, tweaked,” says Abbott. Where are they hitting the mark? Where are they falling short? “This has to be a continuing process in today’s economy.” “Use your results to fine-tune strat- egy,” adds Dean.
“Study your sales funnel, and – when you know what’s in it – you gain the ability to adjust your strategies to get more of the business you want,” says Abbott.
If you do that, have you done enough to ensure forecasts and strategies are in sync? Don’t believe it, because, say the experts, a few more steps remain to be taken. “Use your strategy to get everybody work- ing together,” says Dean. “Make sure the sales team and the supporting functions, such as marketing, are all pursuing the same strategy. That’s how to succeed.” Simply put: Com- municate strategies to the sales force
and allied functions, then follow up to keep everybody focused on the same page. Vandeveldt elaborates: “For many companies, even ones that do forecasting and strategy right, the missing piece is simply that they don’t execute. And, in this economy, execu- tion has become critical.” The big lesson: Even when fore- casts are on the money and strate- gies are well honed, “an organiza- tion that doesn’t execute won’t hit the numbers,” says Vandeveldt. Seems obvious? You bet! But, says Vandeveldt, failure to execute can become a chronic problem with sales campaigns. And all the right think- ing won’t make any difference if the sales team isn’t making the calls and pounding the pavement. “Keep them focused on following the strategies – that’s now a management must- do,” says Dean. Her advice: do that every day, if need be – because that’s the way to see the right, profitable numbers at quarter’s end and for the future beyond.
always move through a set of four predictable stages as they make or reaffirm a purchase decision: 1. Recognition of needs – when buyers define a problem in terms of what a successful solution will look like
2. Evaluation of options – when buyers differentiate between the various suppliers
3. Resolution of concerns – when buyers evaluate the consequences of following through on a tentative decision
4. Changes over time – when a decision is made, buy- ers move to this stage when they become comfort- able with the status quo The development of an effective sales strategy requires salespeople to have three skills for this buying cycle: 1. The ability to recognize where buyers are in their decision cycle at any particular time.
2. The ability to execute the specific skills that create value for customers at each stage.
3. The ability to move buyers both forward and back- ward in their decision cycle.
Once you attain these skills and develop an effective strategy, accurate forecasting should follow.
SELLING POWER OCTOBER 2016 | 47 © 2016 SELLING POWER. CALL 1-800-752-7355 FOR REPRINT PERMISSION.
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