Why Sales Forecasts Fail

Based on K&A's 30+ years of recruiting, managing, and coaching sales staffs, K&A believes that most companies do not understand how to successfully manage sales forecasts.

Here are the top 5 reasons that most companies experience such a low success rate with their sales forecasts, based on K&A's experiences:

  1. The company has not established the management objectives related to its current sales forecasts process. 
  2. The company has not defined the sales and marketing terms that are consistently used by all members of its sales and marketing staff.
  3. The company's current sales forecast process requires significant amount of time from each sales staff member but they, in turn, do not receive any personal benefit from the time that they are required to invest it in, typically each month.
  4. The company's executive team places more emphasis on the "quantity" of the sales forecast information, than it does on the "quality" of the sales forecasts information, that is provided by its sales staff. 
  5. The company does not make good use of its Customer Relationship Management software to satisfy its sales forecasting requirements.

K&A defines "sales forecasts" to be the pipeline of sales opportunities that each sales staff member is actively working on. Each opportunity includes the company name, the total sales value, and the targeted decision date, for each active opportunity.