A recent survey by
CSO (Chief Sales Officer) Insights
revealed the following dismal forecasting facts:
- 94% of forecasted sales are incorrect (they don’t close when forecasted or for the $ amount forecasted)
- 54% do not close at all, with…
- 30% of forecasted
sales
going to the competition, and…
- 24% of the time the buyer does nothing
This demonstrates that, by and large, salespeople don’t have much of a clue about what their prospects are going to do. There are two primary contributing factors:
poor qualifying skills
and
weak pipelines
where salespeople are hesitant to let anybody get away. Thus, salespeople are chasing “deals” that will probably never materialize, wasting their time, and creating attitude problems for themselves. Before you even agree to give the prospect a proposal, there are some serious questions you need to ask yourself. Give yourself a rating from 1-5 (highest) on each issue. If your total points don’t add up to at least 20 (out of a possible 35), you have to wonder why the prospect is even in your forecast.
- You
understand the prospect’s problem
thoroughly and can provide, at a minimum, a satisfactory solution.
- The prospect
has to do something
– it is NOT an option to do nothing. (If doing nothing is an option, they might very well select that option.)
- The prospect has the
necessary resources
to solve the problem and is willing to spend those resources. (If they don’t have the money to invest in your solution, you’re wasting your time. Period.)
- You have
access to the decision maker
and will make your presentation to him/her. (Never make a presentation to someone who can’t say “yes.”)
- The prospect needs to implement a solution in a
time frame
that makes sense for you from a business standpoint. (Time kills deals.)
- You understand the prospect’s
selection criteria
and have a reasonable chance of meeting them successfully. (If this is a price driven deal, for example, and your prices are normally higher than your competitor, chances are you won’t win the business.)
- The prospect is considering only a
small number
of solution providers and is not putting the deal out to every competitor in town. (If the number of players still at the table is large, it only reduces your chances of winning.)
Self-Study Assignment:
Complete this analysis on every prospect to whom you are ready to deliver a proposal. If any score doesn’t exceed 20 points, determine whether you need to continue the qualifying process or pull the plug.