“The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second rule is that automation applied to an inefficient operation will magnify the inefficiency,” says Bill Gates, co-founder of Microsoft. These educative words of Bill Gates are very true and hold good for any industry.
Companies whether big or small, inspire to be leaders in their respective fields. They try to keep pace with technology and the latest scientific innovations to become circumpolar in the market.
Sales Teams are provided with the latest systems, software, technical devices, and gadgets to assist in sales. Digital applications like CRM, ERP, Sales Productivity Automated System, and AI have made inroads in establishments. In spite of having the best systems at disposal and tech-savvy sales staff, still why do companies struggle to predict accurate sales forecasts? This is a matter of great concern for the Management.
With the advent of Sales Productivity Automated System and Artificial Intelligent, Personal Sales Assistant for Field Sales and the back-office staff – generating sales and closing the leads has become more systematic and seamless.
With everything in place, still few ASMs and Sales heads are unable to generate accurate sales forecasts. There are numerous studies conducted by various organizations, where it was found that it is not only the system, at times even the salespersons also contribute their bit for inaccurate sales forecast.
Below we will discuss 7 Behaviors Which Are Not Giving You Accurate Sales Forecast
1. Failure to Enter Correct Customer Details:
If the Sales Team does not have complete knowledge about a specific sales deal or product then there are chances of entering inaccurate feedback in the system. Incomplete or inaccurate data will in turn give erroneous reports and results. It will not be possible even for the ASMs and Sales Head to figure out the mistake; which in turn makes the prediction of Sales Forecast fallacious.
2. Not Reporting the Bad Leads:
Salesforce fearing low conversion rate normally hold back or does not report the sales leads which are not materialized or unlikely to materialize. They do not enter the data in CRM/ SPAS system. They do this fearing termination or negative reflection of their performance. By withholding the bad leads, the monthly sales performance is shown in a better light.
3. Against all odds:
Some of the Sales-leads in the pipeline are shown as prospective leads for days together, at times it is been stretched even beyond 90 days. Studies have indicated that even the salesperson is aware that a particular lead will not come through but still they cling to it – with the faintest hope. If reported as a lost deal then it will reflect against their sales performance. Such under-reported deals simply inflate the sales pipeline.
4. Using Jargons Unrelated To The Industry:
At times certain fields in the ERP / CRM system do have very sophisticated names which confuse the user. The fields have names not related to the industry or it is too complicated. In such cases despite the honest field visits the salesperson will not be in a position to enter accurate feedback, he enters what he deems right but that may convey a different message to the management. Again it is the case of imperfect reporting.
5. Lack of Accountability:
In absence of personal accountability of the Field Sales Team for accurate sales forecasting, it gives room for laxity. Salespeople display over-confident, conservative, and sandbagging behavior in their personal forecasting. They do not have a defined closing plans for active opportunities.
6. Same Goal Two approaches:
“Two people can see the same thing, disagree, and yet both be right. It's not logical; it's psychological,” says Stephen R. Covey, author of The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change. Salespeople adopt different principles and parameters for reporting the potential customer. For example, some salesperson will mention it as a prospective lead just if there is a query for a price quote from the customer. Some salespersons report it as a prospective leads if there is a query for technical details. Both the leads are included as prospective leads even though the odds of success are different. Again it is Management’s failure for not laying down data entry procedure and correct lead identification method.
7. Selecting The Right CRM System:
Any system might not hold good for your company, select the CRM system which is compatible with your business. Most of the companies overlook the after-sales service aspect while purchasing the CRM system. Look for CRM from the companies that give you seamless after-sales service and who can tailor the product as per your business requirements.
With the latest devices and apps – a well-trained salesperson will not face difficultly in entering the data. Even the best CRM systems will not be helpful if users are not able to use them effectively. Thus, it is imperative that the users are well trained, the success of any project cannot be achieved without its user's support. Well-oiled teamwork will yield the best results.
To conclude, CRM helps simplify your business processes and optimize efficiency. However, it is inappropriately choice or poor adaption, as discussed above could lead to chaos.
Toolyt, as leaders in Sales Productivity Automation System and CRM, have been helping the companies with CRM management. Toolyt has integrated with other digital solution systems like Floatbot and Mobillor to give the customer absolute sales solutions. The flawless automated bot solutions for increasing sales and customer satisfaction.