You can’t drive revenue to your business if your sales team doesn’t have the right navigation. A systematic and practical target and forecasting model can aid your team with the knowledge to know which deals to chase. Based on your business model you could set monthly, quarterly or annual targets. But before we get into the details, let’s understand the importance of targets and forecasts to organisational sales.
What Can Go Wrong When Targets and Forecasts Are Not In Sync?
To begin with, a lot. Top management set targets based on past insights about executive performance, product sales, marketing initiatives and more. Extensive thought goes into formulating targets and rightly so. Targets are a reflection of the revenue organisations need to generate in order to stay afloat and succeed. But setting the right targets turns futile without the right forecasting. Only when each representative enters their forecasts, ie.; their anticipated closures for a time period, can the organisation know the impact on the revenue.
While target and forecasting are two separate functions, they are severely interdependent on each other. Errors in targets can impact forecasts and vice versa. Your sales team will end up chasing the wrong deals if you set unrealistic targets. On the other hand, wrong forecasting on the part of the sales team can create an illusionary picture about expected revenue.
You need to closely monitor target allocation, forecasts and executive performance to know if your targets will be realised or not.
What Happens When You Strike The Right Balance Between Targets and Forecasts?
We have discussed the repercussions of inaccurate target and forecasting, but what are the benefits of getting it right? You gain clarity about revenue, sales performance, and the role of each executive in driving sales. You can also detect failure of a forecast and can initiate damage control with the right systems. Such early warning signs can help keep targets on track despite minor hurdles. But it is impossible for you to monitor these functions if your data is maintained on sheets or spread across disparate systems. You can create and assign targets only when you have clear data about leads generated, marketing ROI, past closures, cancellations, and duration of previous sales cycles.
Redefine Long-term Success With The Right Target and Forecasting Tools.
Paramantra’s robust CRM has an in-built target and forecasting feature which works well for top management, sales reps and everyone in between. We systemized the target and forecasting process, so you gain multiple benefits:
Benefits To Top Management
Our CRM makes it easy for you to allocate and monitor your sales targets, especially if you are managing large sales teams. You no longer have to depend on your team for updates about the pipeline, lead status and closures. You can do this with the help of an intuitive percentile indicator which displays how soon a representative will achieve his/her target. This also helps you gain early insights about your team’s performance. In case targets are not being met by your team, you can detect the problem and prescribe solutions to ensure your strategy does not fail. These features of our CRM also make it easy for you to analyze executive performance. You can identify executives who are successfully meeting their targets and provide additional training for those executives who aren’t.
Often organisations miscalculate the compensation due to each executive due to fragmented management systems. Your team works hard and you should reward them fairly. With our CRM, compensation and incentive management become simplified.
Benefits To Executives
With the help of a forecasting system, executives can now know which deals to focus on. In addition, clarity on how close each executive is to meeting his/her targets acts as a motivator and invokes accountability. You can be sure that each executive will bring his best to work when there is visibility of compensation due to them. If your executives fail to forecast a potential closure, then we have you covered. Our intuitive CRM adopts advanced machine learning to auto-suggest deals that can be closed but haven’t been forecasted by your team. So, even if your team accidentally overlooks a potential closure, our system won’t.
Our target and forecasting module allows you to accomplish your organisational goals with the help of insightful data. You can know the gap between allocated targets and the revenue your team managed to generate. This makes it easy for you to set future targets based on present achievements and setbacks.