When it comes to sales forecasting, businesses often face the challenge of overcoming inaccurate forecasts. And while both qualitative and quantitative forecasts play an equal role within the success of a company, when either of them is inaccurate, this can lead to a loss in both productivity and overall sales.
If inaccurate sales forecasts are produced, this can lead to an inefficient supply chain, meaning there's a lesser ability to purchase raw materials at a reasonable price and it also hinders the ability to manage a low or high inventory. Sales are affected due to inaccurate forecasting because it leads to low levels of customer satisfaction. Accurate forecasts allow vendors and customers to be satisfied because they will enjoy your company's ability to meet their demands on time, every time.
It's also with inaccurate forecasting that your financial planning will be negatively effected. Valid forecasting on the other hand leads to the development of a framework that operates according to realistic goals. You'll not only be able to improve your financial planning, but your HR department can accurately recruit job candidates during the times of the year when extra staff are needed, as well.
Human limitations also play a major part in forecasting, especially when customers claim they will return for future purchases but they fail to follow through. And when incentives are given to employees, this can also hinder accurate forecasting because once the incentives are gone, productivity tends to fall, which can severely impede the ability to meet customer demands.
Is There a Solution?
There is a solution and it comes in the form of Microsoft Dynamics CRM. For starters, this program enables you to perform automated lead scoring, meaning you'll have better insight into which leads are sales ready. Each lead gets graded and scored, which helps you see which leads to interact with. Many pieces of data entered into this CRM are used to perform automated lead scoring, including purchase timeframe, job role, web-click behaviors, email activity, product detail, etc.
It's also with Microsoft Dynamics CRM that both historic and current sales results are used to produce future forecasts. Not only are sales forecasts given based on historic data, but current market trends are also taken into account, which improves the overall effectiveness of the forecasts, meaning they are much more profitable.
From competitor tracking to pipeline management to qualifying leads, Microsoft Dynamics CRM enables you to create forecasts that are accurate. Gone are the days of inaccurate forecasts negatively affecting your bottom line. With Microsoft Dynamics CRM, all departments can enjoy streamlined operations, which increases efficiency and provides optimal cash flow and inventory management.
By Socius, a Microsoft Dynamics CRM partner in Ohio and Kansas (www.socius1.com)
Get Your Sales Forecasts Right Before Your Commission Takes a Hit is a post from: CRM Software Blog
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