12 Forecasts Flashcards
How effective is a CRM in forecasting deals?
Often as effective as tarot cards or a crystal ball.
This highlights the uncertainty in sales forecasting.
What is the chance of winning any deal without a signed contract?
50-50 chance.
This emphasizes the unpredictability of sales without formal agreements.
What does the ‘Prospecting’ stage in Salesforce indicate?
10 percent chance of winning.
This percentage is arbitrary unless proven by actual performance.
What is the implication of having the same winning percentage for ‘Qualified’ and ‘Unqualified’ prospects?
Qualifying does not improve winning chances.
This suggests flaws in how stages are assessed in CRMs.
What does the ‘Value Proposition’ stage increase the chances of winning to?
50 percent.
This stage often involves minimal effort yet shows a significant increase in perceived success.
In sales forecasting, what does a 70 percent chance of winning imply if there are two competitors?
Actual odds of winning are 33 percent.
This scenario illustrates the flawed math in CRM forecasting.
What does a 90 percent chance of winning typically indicate in a negotiation scenario?
At best, a 50-50 chance of winning.
This reflects the reality of competitive negotiations.
What is the difference between sales as a science and as a craft?
Sales is more of a craft than a science.
This indicates that sales cannot be precisely replicated like scientific experiments.
What is Year Zero in the context of sales?
The time before a significant opportunity presents itself.
This concept emphasizes the long-term nature of some sales cycles.
What strategy should be employed when targeting large prospective clients?
Maintain a second operational pipeline for smaller, quicker deals.
This helps mitigate revenue fluctuations caused by the long sales cycles of large clients.
What is the purpose of the operational pipeline?
To generate steady revenue while pursuing large deals.
This ensures consistent cash flow, preventing feast-or-famine cycles.
How can sales organizations manage fluctuations in revenue?
By balancing large and medium-sized deals in their pipelines.
This prevents income variance that can occur from focusing solely on large deals.
What is a key factor in improving forecast accuracy?
Consider the time spent before the first meeting with potential clients.
Ignoring this can lead to unrealistic expectations about sales cycles.
What does the Barbell Strategy represent in sales?
Balancing conservative and aggressive approaches to deal management.
This metaphor suggests managing risk and reward effectively.
What does the term ‘sine wave’ refer to in sales results?
The fluctuation in revenue due to focusing on large deals.
This illustrates how concentrating on few deals can lead to inconsistent income.
Fill in the blank: The sales cycle for larger clients often requires _______.
Year Zero.
This indicates the long-term investment of time before opportunities materialize.
True or False: The operational pipeline focuses on large, long-cycle clients.
False.
The operational pipeline is aimed at smaller, quicker revenue-generating clients.
What analysis can help predict which deals will close?
Examining individual success rates and deal stages.
This can reveal patterns in sales performance.
What is the impact of pursuing only large deals?
It can lead to a feast-or-famine pattern.
What is the recommended approach for managing sales deals?
Pursue both large deals and medium-sized deals.
What should salespeople provide to justify a deal’s inclusion in a forecast?
Reasons why the client needs to change.
Why is commitment to change important in forecasting?
It indicates a positive sign for the sales process.
What does BANT stand for?
Budget, Authority, Needs, Timeline.
Why is it crucial to identify stakeholders in a sales deal?
To know who will greenlight a change initiative.
