Sales Cycle Length Forecasting Method
Example.
The sales cycle lasts for six months. The philippines whatsapp manager has been working with a potential client for three months. The probability of closing the deal is 50%.
All leads can be divided into different "baskets" depending on the source. This way, you can get a more accurate picture. For example: someone who came by recommendation can close a deal in two to three weeks, while working with a cold client will take 2-3 months.
The advantages of the method include the ability to apply it to various sources of potential clients to obtain the most accurate forecasts. The disadvantages include:
Possible inaccuracy of results.
The need to carefully track how and when a potential client entered the sales channels.
Remember: if a customer has been in a transaction for a long time, it does not mean that everything is fine. Moving forward is often driven by habit, curiosity, or hope for the best.
Lead Source Forecasting Method
The methodology is based on the analysis of historical sales information for each source of potential customers. The beginning of the buyer's journey can be used to understand what will happen at its end.
The following data will be required for forecasting:
number of leads per month for the previous period;
lead conversion rate by source;
average selling price for this source.
Lead Source Forecasting Method
This method is a great starting point. You need to consider the factors that can somehow influence the final result. For example, if the marketing team changes the lead generation strategy, the conversion rate may change. Therefore, it is necessary to work closely with the marketing department and take into account possible transformations.
The advantages include a fairly accurate sales forecast, while the disadvantages include the likelihood of various changes due to the influence of certain factors.
This method is most often used by those companies that monitor when and how potential customers end up in the sales funnel. Timely communication between the marketing and sales departments is important.