The
Fallacy Of Sales Funnels And Forecasts
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If there is one mainstay in virtually every
sales office, it would have to be funnels & forecasts.
Sales managers swear by them; however, I’ve found that they
frequently do more harm than good.
Funnels seem like a good idea in theory. The
problem with funnels, however, is that they practically scream
“micro management.” Funnel reviews strike terror in the hearts
of salespeople. They scream the words “probation” and
“performance improvement plan.” Sales managers who wish to
succeed need to learn some basic psychology, especially the
principle of autosuggestion. Doing so will make it very clear
as to why the very sound of the word funnel instantly changes
salespeople’s attitudes from positive to negative and has very
bad effects on sales performance.
Forecasts also make sense in theory. After
all, accurate forecasting is a necessity for good business
planning. The key word, however, is accurate. If you believe
that an accurate sales forecast has ever existed then I’ve got
a nice bridge for sale just for you. Salespeople simply do not
submit accurate forecasts. Most salespeople grossly
overestimate their forecasts in order to appease their
managers. After all, would you, as a salesperson, want to face
the wrath of submitting a forecast that falls short of
expectations? This is why dead deals and phony deals tend to
outnumber the real ones on forecasts. On the other side of the
coin, some salespeople underestimate forecasts simply because
they don’t want a manager asking, “When is this one going to
sign? When is that one going to sign?” An overbearing manager
simply isn’t worth dealing with so they leave good deals off
the forecast.
The other huge problem with funnels &
forecasts is that they force salespeople to manage their
activity on a month-to-month basis. This results in the
horrendous practice of slacking off at the beginning of every
month, then working overtime at the end of the month trying to
get enough deals signed to make quota. It just doesn’t work in
the real world. Successful top producers work in the present,
not in terms of “it’s the beginning of the month” or “it’s the
end of the month.” Top producers are consistent because today
is neither the beginning nor the end of the month. Today is
today, and that means doing the same thing today that they do
every day to get the results they achieve.
Forget about funnels & forecasts. Manage
with common sense instead and watch your sales results
skyrocket.
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About
The Author
Frank
Rumbauskas, the New York Times best-selling
author who revolutionized selling, has taught
tens of thousands of salespeople and small
business owners how to stop cold calling forever! For
10 free chapters of Frank's breakthrough
book, please visit www.nevercoldcall.com.
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