The second component of sales cycle management is sales forecasting. The following are some of the benefits of sales forecasting. Sales forecasting enables the business to analyze past sales events, annual growth and competitive growth among the competitors. Sales forecasting tools enable a business to analyze the price and cost structure. Sales forecasting tools when used well can be used by a business to predict virtually guaranteed profits. You can look into the future of your business in a more objective way when you use sales forecast tools.
Creating Sales Forecasting Tools.
To begin you will need information on the past sales record. Getting data for several years will enable a business to know its current and past standpoint. Using the data try and check the external and internal factors that have affected sales and make a list. Competitor activities and economic conditions are some of the external factors while internal factors include labor conditions and organization policy. Identify the products that require forecasting and whether they are grouped or separated in order to get a precise forecast. Consider the timeframe of the forecast and how realistic the future you intend to forecast. Check the frequency of the creation of forecast and how frequent they will be reviewed. Develop a margin error that is acceptable based on the cost, expense, and profit of the forecast. A marginal error is used to test the realistic nature of the forecast. The interaction of costa and expense can be seen from looking at the analytical reports such as financial statements. Keep in mind the use of consistent and standard mathematical formulas when forecasting a stable product and a variety of mathematical formulas when forecasting unstable products.
How To Create A Workable Sales Plan
Building a sales plan is a tough activity for many businesses. A sales plan is very different from a sales budget as well as a business plan. The sales tactics and strategies used by a business are in a sales plan. The first step when creating a sales plan is to establish a sales planning team. You need to have a sales planning team so as to gain support and additional insight from the team. Task each person with a specific role in the sales planning process. Customer profiling is necessary in sales plan creation, you can create the profile using data from completed market research. Ensure the market you are targeting will support the sales plan . and develop a marketing strategy. A marketing strategy will help the business to know how well they will reach the customers. Evaluate the sales team the business has and check if they will be able to deliver on the goals. Have the sales team trained on the best way to achieve the sales target.