What do you do if your sales forecasting is hindered by poor decision making?

Sales forecasting is a critical component of sales management, as it predicts future sales and helps in strategic planning. However, when poor decision making clouds your forecasting efforts, it can lead to missed targets, wasted resources, and strategic missteps. To navigate this challenge, it's important to recognize the signs of poor decision making, reassess your forecasting methods, and implement changes that can lead to more accurate predictions.

1 Recognize Signs

If your sales forecasting is consistently off the mark, it could be a sign that poor decision making is at play. Common indicators include relying too heavily on intuition rather than data, not accounting for market changes, or disregarding historical sales trends. It's crucial to acknowledge these red flags and understand that they may be symptomatic of deeper issues within your sales management strategy. By identifying these signs early, you can take proactive steps to address the underlying causes and improve the accuracy of your forecasts.

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Eduardo Cambil Molina

Mentor, Business Senior Advisor, Strategic Consultant, Business Coaching. C Suite
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Si el pronóstico de ventas está siempre mal, es síntoma de que, o no se están haciendo correctamente las cosas, no hay la actividad necesaria requerida o el desempeño es bajo. En caso de que no sea así, habría que revisar la forma de calcularlo, pues si la previsión no coincide, igual el algoritmo no está bien. En cualquier caso una aviso a tiempo, nos permitirá reaccionar y poder corregir.

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2 Reassess Methods

Once you've identified that poor decision making is affecting your sales forecasting, it's time to reassess your methods. This involves a thorough review of the tools, data sources, and algorithms you use to predict sales outcomes. Evaluate whether your current methods are data-driven and flexible enough to adapt to changing market conditions. Consider seeking external advice or adopting new technologies that can provide more accurate forecasting models. A fresh perspective on your forecasting approach can help you eliminate biases and make more informed decisions.

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JC Negri

VP of Growth at Intech Innovation Group
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In my experience, I utilize decision support systems (DSS) or business intelligence tools to provide sales managers with actionable insights and recommendations based on historical data, market trends, and predictive analytics. These systems can assist in making informed decisions and mitigating the impact of poor decision-making on sales forecasting.

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Eduardo Cambil Molina

Mentor, Business Senior Advisor, Strategic Consultant, Business Coaching. C Suite
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Las previsiones de ventas, han de alimentarse de los datos históricos, pero sobre todo de los datos aportados del desarrollo de la actividad comercial, la cual es la principal medida de si estamos o no en el camino correcto.

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3 Enhance Data Quality

Enhancing the quality of the data you use for sales forecasting is essential to making better decisions. Ensure that the data is current, comprehensive, and accurately reflects customer behavior and market trends. Cleanse your data regularly to remove any inaccuracies or outdated information that could skew your forecasts. By improving data quality, you create a more reliable foundation for your forecasting models, which can lead to more confident and effective decision making.

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4 Foster Collaboration

Fostering collaboration among your sales team and other departments can significantly improve decision making in sales forecasting. Encourage open communication and the sharing of insights across teams. This cross-functional approach allows for a more holistic view of the factors affecting sales, such as marketing campaigns, customer service interactions, and product developments. Collaboration ensures that your forecasting takes into account diverse perspectives and expertise, leading to more robust and accurate predictions.

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Eduardo Cambil Molina

Mentor, Business Senior Advisor, Strategic Consultant, Business Coaching. C Suite
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Ventas, marketing y análisis de datos son partes de un mismo todo. Los comerciales han de entender la estrategia, marketing, ha de diseñarla, ponerla en práctica y explicarla y los departamentos de información e IT, deben de proporcionar esos datos que nos corroboren, que lo diseñado funciona, o no. En muchos casos el laboratorio y el papel soportan todo, pero no ocurre en la realidad. La visión del equipo comercial es fundamental

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5 Set Realistic Goals

Setting realistic goals is a key step in remedying the impact of poor decision making on sales forecasting. Goals should be ambitious yet achievable and based on a clear understanding of your market position and resources. They should also be flexible enough to adjust as new information emerges. By setting realistic goals, you align expectations with what is practically attainable, reducing the risk of making decisions based on overly optimistic or pessimistic forecasts.

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Eduardo Cambil Molina

Mentor, Business Senior Advisor, Strategic Consultant, Business Coaching. C Suite
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Establecer metas realistas es sumamente importante, pero tener un buen plan para alcanzarlas, también lo es. No sirve establecer objetivos muy ambiciosos, si no hay una forma de alcanzarlos. Lo anterior depende del mercado, competencia, nuestros recursos, el plan de ventas y el plan de marketing.

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6 Monitor and Adjust

Finally, continuous monitoring and adjustment of your sales forecasting process can safeguard against the negative effects of poor decision making. Regularly compare your forecasts with actual sales results to identify discrepancies and understand their causes. Use this feedback loop to refine your forecasting methods and decision-making criteria over time. By staying vigilant and willing to make adjustments, you can ensure that your sales forecasting remains a reliable tool for guiding your sales management strategy.

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Eduardo Cambil Molina

Mentor, Business Senior Advisor, Strategic Consultant, Business Coaching. C Suite
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Las ventas han de seguirse permanentemente, pero no el resultado, sino todo lo que ocurre hasta llegar a él, pues esto nos va a ayudar a, en caso de no llegar, identificar donde está el problema, lo que nos va a permitir corregir lo necesario

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Mohamed Abdulaziz Abou Basha

Regional Sales Manager@ Baker’s Choice | HORECA (Foodservice) | Frozen Bakery | FMCG | B2B | Enhancing and Developing Frozen Bakery Division🥐🥖
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I would prioritize identifying and addressing the root causes of these decisions. This may involve conducting a thorough analysis of past decisions, evaluating their impact on sales performance, and identifying areas for improvement. I would then work closely with my team to implement corrective measures, such as providing additional training, refining decision-making processes, or seeking input from relevant stakeholders. By fostering a culture of accountability and continuous improvement, we can enhance our forecasting accuracy and ultimately achieve our sales targets.

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What do you do if your sales forecasting is hindered by poor decision making?

1

2

3

4

5

6

7

1 Recognize Signs

2 Reassess Methods

3 Enhance Data Quality

4 Foster Collaboration

5 Set Realistic Goals

6 Monitor and Adjust

7 Here’s what else to consider

Sales Management

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What do you do if your sales forecasting is hindered by poor decision making?

1

2

3

4

5

6

7

1 Recognize Signs

2 Reassess Methods

3 Enhance Data Quality

4 Foster Collaboration

5 Set Realistic Goals

6 Monitor and Adjust

7 Here’s what else to consider

Sales Management

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