A better way to forecast your "close date"
As a sales leader, Â over the years I have observed that one of the more challenging things for sales reps to deliver is an accurate forecast around close dates. Â While there will always be external factors that come in to play and put timing âat riskâ, I continuously coach my team that one avenue to improve accuracy is to evaluate the opportunity through the lens of the customer. Â Specifically, in order for you to more accurately forecast when (and if) a deal will close, it is essential that you engage your customer in dialog regarding its target start date and what the customer needs to accomplish to meet that date. Â
Too often sales reps commit deals without truly understanding timing and what is driving that timeline from the customerâs standpoint. Â More directly, one simply cannot take the customerâs response at face value. Â When trying to gauge timing, here is how the typical conversation unfolds:
Sales Exec: Â So XYZ Customer, if all goes well, when do you want to get this implemented by?
Customer: If we are going to use this, I need to get it implemented by February.
Sales Exec: Why February?
Customer: Â We have a project kicking off that I would love to be able to leverage your software for.
Sales Exec to Sales Manager (during pipeline review): Â "I am going to get XYZ Customer to sign a deal by February. The Customer told me he has to get it done by then because they have a project coming up and need our solution.â
As a sales professional, it is not enough to ask "when do you want to get this implementedâ and use that as your barometer for calling a close date. Â The essential follow up to this is a line of questions to help you understand the âwhyâ from a timing perspective to see if there is a compelling event driving this deal.
In other words, consider asking sample questions like these:
- What happens if you donât implement us in the target time frame? Â What is the impact to your business? Â Who else cares about this?
- What is the cost of making those changes? Â
- What is the value that you recognize by utilizing our software? How are you quantifying that - are we saving/making you money? Â If so, who else should know about the impact of this switch? What is the most effective way to educate them?
- Does the CXO understand the impact that ABC Software will have on your business?  Does he or she know that we are talking and support this initiative  What and when do we have to present this to him or her?
- In order to get something purchased in the identified time frame, what are the sequence of events that need to occur?
- What other parties need to be involved (e.g. does IT need to evaluate this, does CISO have security questions, does procurement get involved?)
- Who needs to review this? Who needs to sign off on this? Â
- Where does this project stand in terms of priority against other business initiatives?
- Are there any systems that this touches which we need to account for?
Obviously this is not an exhaustive list - but it demonstrates the importance of peeling back the onion the next time your prospect says âI need to get this implemented by Xâ. Â Remember to ask enough questions so that you thoroughly understand the âwhyâ behind the desired date. Â If your prospect doesnât have all the answers, thatâs ok! Â Your job is to help him get those questions answered. Just remember to set appropriate expectations with your manager along the way!!!
Happy selling!











