I am looking for best practices in forecasting. My inside sales team sells a variety of products and services to a niche industry. Some sales cycles are a week, others are six months. We don't have enough historical data to be able to look at run rates. This presents me with a challenge. When I submit my team's monthly forecast on/around the 1st of the month, there are going to be deals that come up after that date and close within the month. How do I account for those without run rates? Also what is an ideal pipeline coverage? Our field sales reps (6-12 month sales cycle) are to have 2.5 to 3 X their annual quota in their pipeline at any given moment. Since my team's deals are more transactional that formula does not work. I have considered 2.5 to 3 X their 90 day quota. So if their quota is $250K / quarter they should have $625-$750K in their pipe at any given moment. Any other suggestions?
Posted by: Christopher Burger
Posted: October 25th, 2014