Upgrade to Pro — share decks privately, control downloads, hide ads and more …

Build the Ultimate Sales Forecast with CRM

Build the Ultimate Sales Forecast with CRM

Learn how to organize and empower your team to deliver accurate sales forecasts with Sugar Sell.

SugarCRM

April 26, 2022
Tweet

More Decks by SugarCRM

Other Decks in Technology

Transcript

  1. No Blind Spots:
    Build the Ultimate
    Sales Forecast

    View full-size slide

  2. © 2022 SugarCRM Inc. All rights reserved.
    2
    Everyone is
    on mute
    Questions
    are welcome
    Recording
    available
    Before We Start

    View full-size slide

  3. © 2022 SugarCRM Inc. All rights reserved.
    James Harper
    Senior Product
    Marketing Manager
    SugarCRM
    [email protected]
    Presenters
    Ellen True
    Sr. Director, Product
    Management
    SugarCRM
    [email protected]
    Sarah Friedlander G.
    Director,
    Content & Creative
    SugarCRM
    [email protected]
    Christian Wettre
    SVP & General Manager,
    Platform
    SugarCRM
    [email protected]
    3

    View full-size slide

  4. © 2022 SugarCRM Inc. All rights reserved.
    • Introduction
    • Forecasting Fundamentals
    • Forecasting Models
    • How Sugar Supports Forecasting Models
    • Setting Up a Committed Forecast Model
    • Inspecting and Analyzing the Forecast
    • Q&A
    Agenda
    4
    4

    View full-size slide

  5. © 2022 SugarCRM Inc. All rights reserved.
    Forward Looking
    Statements
    • This material contains forward-looking
    statements relating to SugarCRM’s
    expectations and plans regarding our
    products. These statements are based
    on the current expectations and beliefs
    of SugarCRM’s management as of the
    date this material is issued.
    • Our roadmap could change substantially
    from what is presented here due to a
    variety of factors, some of which are
    beyond our control. Such changes can
    be made by us without updating these
    forward-looking statements.

    View full-size slide

  6. © 2022 SugarCRM Inc. All rights reserved.
    Companies who achieve a reliable sales
    forecast:
    • Grow faster those who do not
    • Higher percent of team meets quota than
    those who do not
    • By 2026, 65% of B2B sales organizations
    will transition from intuition-based to data
    driven decision making, using technology
    that unites workflows, data and analytics.
    Why Spend Your Time
    on Forecasts?
    6

    View full-size slide

  7. © 2022 SugarCRM Inc. All rights reserved.
    Let the Platform do the Work!
    • CRM-managed pipeline processes support
    complete and accurate opportunity details
    • Common areas for data discrepancy and
    failure
    • Quotes
    • Contracts
    • Opportunities
    • Conversation details
    • Capture and manage this data together in
    CRM!
    7

    View full-size slide

  8. © 2022 SugarCRM Inc. All rights reserved.
    Forecasting Fundamentals
    8

    View full-size slide

  9. © 2022 SugarCRM Inc. All rights reserved.
    Terminology
    9
    Term Definition
    Rep Quota A sales reps’ revenue goal
    Company Target A company’s revenue goal
    Attainment Percentage of quota or target achieved
    Qualified Opportunity A sales opportunity where there is a confirmed need and interest
    Open Opportunity Opportunities that are not won, lost, or abandoned
    Pipeline The sum of the value of all your open opportunities
    Coverage Ratio Value of Pipeline expected to close this period divided by Quota this period. For instance, if your pipeline in
    quarter is $1,000,000 and your quota is $300,000 your coverage ratio is 3.3X
    Forecast With a chosen forecast methodology, a calculation of the portion of the pipeline that will become revenue in a
    period
    Call An amount representing the forecast for a period by an individual responsible for a portion of the sales
    organization. For instance, a sales manager may make a forecast ‘call’ of $1,000,000 in revenue on behalf of
    their team.
    Committed
    Opportunity
    An opportunity expected to by won in a specified period such as this quarter
    Upside An opportunity where there is a chance that it may be won in a specified period but is not committed
    Sales Stage Where an opportunity sits in regard to an organizations shared sales process. Typical sales stages are New,
    Qualified, Presented, Quoted, Selected, Won, Lost, or Abandoned.
    Close Date The date when an opportunity is expected to turn into an order

    View full-size slide

  10. © 2022 SugarCRM Inc. All rights reserved.
    Forecasting Models
    10

    View full-size slide

  11. © 2022 SugarCRM Inc. All rights reserved.
    Chose a Sales Forecast Method
    11
    Weighted
    Probability
    Forecasts
    Each sales stage is
    assigned a Win
    probability
    Smaller organizations or
    firms without a need for
    strict sales goals
    It is ‘automatic’ and the
    sales team do not need
    to run a forecast cadence
    It is a directional forecast
    only and can be heavily
    skewed by ‘outlier’
    opportunities
    Forecast
    Type
    Description
    Who?
    Pros
    Cons
    Historical
    Forecasts
    Historical average ‘Days
    to Close’ are calculated
    together with ‘Win Rates’
    Organization with high
    opportunity velocity,
    lower opportunity value,
    or stable conditions
    It is ‘automatic’ and the
    sales team do not need
    to run a forecast cadence
    You are looking back at
    the past and not at the
    present and future states
    of your situation
    Committed
    Forecasts
    Opportunities are maintained
    with an expected close date
    and marked as either
    committed or not
    Larger organizations needing
    set reliable expectations
    about revenue
    Encourages a deeper
    individual responsibility to
    committed deals and
    surfaces weak pipelines.
    Requires a lot of inspection of
    committed opportunities

    View full-size slide

  12. © 2022 SugarCRM Inc. All rights reserved.
    Weighted Probability Forecasting
    12
    Stage 1
    Stage 2
    Stage 3
    Stage 4
    +
    +
    +
    = Current Period Forecast
    New
    Qualified
    Quoted
    Selected
    $100K x 25% = $25K
    $75K x 35% = $26.5K
    $50K x 50% = $25K
    $25K x 80% = $20K
    +
    +
    +
    = $96.5K
    Current Quarter Pipeline
    Current Period Pipeline Value x Stage 1 Win Rate
    Current Period Pipeline Value x Stage 2 Win Rate
    Current Period Pipeline Value x Stage 3 Win Rate
    Current Period Pipeline Value x Stage 4 Win Rate

    View full-size slide

  13. © 2022 SugarCRM Inc. All rights reserved.
    Sugar administrators configure as many
    sales stages as needed and associates a
    win rate / probability % to each
    Sugar Supports Weighted Probability Forecasting
    13

    View full-size slide

  14. © 2022 SugarCRM Inc. All rights reserved.
    • When the volume of opportunities is high, forecasts can be calculated to serve as the forecast or to
    support other forecast models.
    • Formulas with standard deviations of time lag trailing averages for days to close and win rates can be
    built to forecast for your organization.
    Historical Forecasting
    14
    Days to Close and Win Rates by Stage
    Opportunities
    x
    x

    View full-size slide

  15. © 2022 SugarCRM Inc. All rights reserved.
    Sugar Sell Premier Supports Historical Forecasting
    15
    Time-aware reporting tracks
    past performance to predict
    outcomes in current and future
    sales periods

    View full-size slide

  16. © 2022 SugarCRM Inc. All rights reserved.
    • Opportunities in the pipeline are updated with a commitment indicator when the sales rep is
    confident that the opportunity will be won by a specified date
    • Sales reps and managers make periodic forecast ‘Calls’ based on committed pipeline, historical
    pipeline movement, available pipeline ‘Coverage’, and market conditions
    Committed Forecasting
    16
    Opportunity Name Opportunity Value Expected Close Date Committed
    1,000 Widgets to ABC Corp $8,800 June 01 Yes
    500 Widgets to XYZ Inc. $5,000 June 13 No
    300 Gizmos to XYZ Inc. $9,000 June 23 Yes
    Forecast ‘Call’ addition $5,000
    Period Forecast $22,800
    +
    =
    Committed Pipeline $17,800

    View full-size slide

  17. © 2022 SugarCRM Inc. All rights reserved.
    How Sugar Supports Committed Forecasts
    17

    View full-size slide

  18. © 2022 SugarCRM Inc. All rights reserved.
    How Sugar Supports Committed Forecasts
    18

    View full-size slide

  19. © 2022 SugarCRM Inc. All rights reserved.
    Poll
    What forecast model do you use?
    19

    View full-size slide

  20. © 2022 SugarCRM Inc. All rights reserved.
    Setting Up a Committed
    Forecast Model
    20

    View full-size slide

  21. © 2022 SugarCRM Inc. All rights reserved.
    Organize a Repeating Forecast Cadence
    21
    Sales
    Representative
    Sales
    Manager
    Vice President
    Sales
    Chief Revenue
    Officer
    Chief Financial
    Officer
    Chief Executive
    Officer Board of
    Directors
    Friday PM Monday AM Monday PM Tuesday AM

    View full-size slide

  22. © 2022 SugarCRM Inc. All rights reserved.
    Sugar Builds
    Team Forecasts
    22

    View full-size slide

  23. © 2022 SugarCRM Inc. All rights reserved.
    Sugar Enables Drill Down to Team Members
    23

    View full-size slide

  24. © 2022 SugarCRM Inc. All rights reserved.
    Inspecting and Analyzing
    the Forecast
    24

    View full-size slide

  25. © 2022 SugarCRM Inc. All rights reserved.
    • During the Forecast Cadence, each team member inspects their opportunity
    pipeline and prepares to defend their forecast position
    • What is inspected on each opportunity:
    Inspecting the Forecast, Preparing to Make a Call
    25
    Opportunity
    Why is the deal committed?
    Have the contracts been sent to
    the customer?
    Have we learned what we would
    expect for the current sales
    stage?
    Have we discovered the
    competitive positioning?
    Contacts
    Are we speaking to enough
    people?
    Are we speaking to the right
    people?
    Who are our supporters or
    detractors?
    Interactions
    When did we interact last?
    When do we meet next?
    Does the interaction pace match
    the sales stage?

    View full-size slide

  26. © 2022 SugarCRM Inc. All rights reserved.
    Inspecting the Forecast:
    Who Moved the Cheese?
    26

    View full-size slide

  27. © 2022 SugarCRM Inc. All rights reserved.
    Sugar Helps You Inspect the Forecast
    27

    View full-size slide

  28. © 2022 SugarCRM Inc. All rights reserved.
    Sugar Helps You Inspect the Forecast
    28

    View full-size slide

  29. © 2022 SugarCRM Inc. All rights reserved.
    Making a Forecast Call
    At each level of the seller reporting chain,
    at a fixed schedule, a seller confirms their
    period forecast by making a ‘Call’
    29

    View full-size slide

  30. © 2022 SugarCRM Inc. All rights reserved.
    Sugar Helps You Analyze Your Forecast
    30

    View full-size slide

  31. © 2022 SugarCRM Inc. All rights reserved.
    Sugar Helps Your Team Make Calls
    31

    View full-size slide

  32. © 2022 SugarCRM Inc. All rights reserved.
    Sugar Measures Forecast
    History and Accuracy
    32

    View full-size slide

  33. © 2022 SugarCRM Inc. All rights reserved.
    Key Takeaways
    33

    View full-size slide

  34. © 2022 SugarCRM Inc. All rights reserved.
    6 Key Takeaways
    1. You will be more likely to meet your
    revenue goals with a disciplined
    forecasting process
    2. Let the platform do the work, expect your
    CRM platform to help with the process
    3. Establish a consistent weekly or bi-weekly
    pipeline inspection and forecast call
    cadence
    4. Inspect the pipeline opportunities for risk
    and sales process compliance
    5. Hold each other accountable
    6. Measure how accurate your forecasts are
    and continually refine the process
    34

    View full-size slide

  35. © 2022 SugarCRM Inc. All rights reserved.
    What’s Next?
    Help us make a great product!
    • Email Ellen True at
    [email protected] to
    schedule a feedback session
    Would you like to see how this
    works for you?
    • Schedule a 30 minute 1 on 1
    briefing by emailing
    [email protected]
    35

    View full-size slide

  36. © 2022 SugarCRM Inc. All rights reserved.
    Q&A
    36

    View full-size slide

  37. © 2022 SugarCRM Inc. All rights reserved.
    Thank You!
    37

    View full-size slide