Learn the common mistakes that sales engineers make when forecasting, and how to avoid them. Improve your data, metrics, and communication skills.

Don't just rely on your happy ears! Actively seek out evidence that contradicts your assumptions/understanding about the opportunity. Ask yourself difficult questions: * why would the customer not go with us/go with the competitor/maintain the status go * what happens if they don't hit the timescales we think they're working to * what could derail this project One of the ways in which you can help your sales colleague is to play the role of "critical friend" and constructively (!) challenge your (shared) understanding of the deal. You can also, as a sales engineer, seek out other customer stakeholders and get their perspective on the project/opportunity. Often times it will give you new insight.

Your sales forecasting is off. What are you doing wrong?

Sales forecasting is a crucial skill for sales engineers, as it helps you plan your resources, prioritize your leads, and align your goals with your team and your customers. But what if your sales forecasting is off, and you're missing your targets, wasting your time, or losing opportunities? In this article, you'll learn some common mistakes that sales engineers make when forecasting, and how to avoid them.

1 Lack of data

One of the main reasons why your sales forecasting is off is that you don't have enough data to support your assumptions and projections. Without data, you're relying on guesswork, intuition, or wishful thinking, which can lead to inaccurate or unrealistic forecasts. To improve your data quality and quantity, you should track and update your sales activities and outcomes in your CRM regularly and consistently. Additionally, use a standardized and objective scoring system to qualify and rank your leads and opportunities based on their fit, interest, and readiness. Furthermore, collect customer feedback and testimonials to understand their pain points, needs, and expectations. Moreover, conduct market research and competitor analysis to identify trends, opportunities, and threats in your industry. Lastly, review and compare your historical performance and results to identify patterns, gaps, and areas for improvement.

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Malcolm Murphy

Senior Director Sales Engineering at Mimecast
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Don't just rely on your happy ears! Actively seek out evidence that contradicts your assumptions/understanding about the opportunity. Ask yourself difficult questions: * why would the customer not go with us/go with the competitor/maintain the status go * what happens if they don't hit the timescales we think they're working to * what could derail this project One of the ways in which you can help your sales colleague is to play the role of "critical friend" and constructively (!) challenge your (shared) understanding of the deal. You can also, as a sales engineer, seek out other customer stakeholders and get their perspective on the project/opportunity. Often times it will give you new insight.

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2 Wrong metrics

If your sales forecasting is off, it may be because you're using the wrong metrics to measure and predict your sales performance. Metrics are indicators that help track and evaluate progress and success, but lagging metrics such as revenue, profit, or closed deals don't provide much insight into future outcomes. Instead, focus on leading metrics such as pipeline value, conversion rate, or customer satisfaction. To choose the right metrics for your sales forecasting, align them with your sales objectives and strategies. Make sure they are specific, measurable, achievable, relevant, and time-bound (SMART). Additionally, ensure they are consistent and comparable across different time periods, regions, segments, and channels. For example, use a common metric such as average deal size or sales cycle length instead of different metrics for different markets or products.

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Jim Prosser

Senior Account Manager @ Grand & Toy | Trusted Advisor
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Metrics schmetrics. If the evaluation of your client base is done through doing the dumb things faster, you’re with the wrong company. Its communication, always has been, always will be. Every salesperson worth their salt got into sales because of the variable component of their income…the better your communication skills, the harder it is to sit down because of the size of your wallet. Today, shiny dashboards, the blinking lights of the embarrassment boards to the incompetent managers who think they have discovered electricity…take away the real energy of sales. It’s always been about revenue and gp through communication, not the number of dials.

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3 Poor communication

A third reason why your sales forecasting is off is poor communication with stakeholders, such as your sales manager, sales team, or customers. Communication is essential for sales forecasting, as it helps share information, align expectations, and collaborate effectively. Without communication, you may face misalignment, confusion, or conflict which can negatively impact sales performance and forecasting accuracy. To improve your communication for sales forecasting, be sure to communicate your forecast clearly and transparently with your manager and team while also explaining the rationale, assumptions, and risks behind the numbers. Additionally, communicate regularly and proactively with customers to keep them informed and engaged throughout the process. Ask questions, listen to feedback, and address any concerns or objections. Finally, communicate effectively and persuasively with prospects while demonstrating the value and benefits of your solution; consider using stories, testimonials, case studies or demos to showcase expertise and credibility.

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4 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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Your sales forecasting is off. What are you doing wrong?

1

2

3

4

1 Lack of data

2 Wrong metrics

3 Poor communication

4 Here’s what else to consider

Sales Engineering

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Your sales forecasting is off. What are you doing wrong?

1

2

3

4

1 Lack of data

2 Wrong metrics

3 Poor communication

4 Here’s what else to consider

Sales Engineering

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