By Dan Hudson, President, 3forward
We all remember the deal that was really looking good. The client had a need; our product or solution was a good fit; the ROI was right; the client budget was in place to fund it, and we were positioned with the person(s) that could say yes. Everything was looking green for the close and the forecast looked great! Then nothing happened.
The expected decision date came and no award was made. We adjusted the close date in our CRM system and waited for the next milestone. Still no decision so we slipped the date again, and again, and again. That no-decision result is one of the most challenging realities of sales.
We have all been there at some time or another. Sometimes decisions are delayed for legitimate reasons: new management changes priorities, the client needs changed and our product or solution was no longer valid, budget reductions occur, or the client simply can’t make a decision. The simple fact is that the longer an opportunity languishes the more likely it is to die. (Time helps no sale!)
Sales professional typically know in their heart when an opportunity has died, but many are reluctant to move it to the loss category, or to reduce the win probability, because their pipelines are not large enough to absorb the loss. This problem is compounded at the sales leader level where you have a team of sales reps each carrying a few dead or permanently dormant deals that should be removed from the pipeline.
Take note sales leaders. As we move closer to the 4th quarter of what will probably be one of the most challenging sales years on record, now is the time to do a pipeline reality check. Many sales reps will try to convince you that dead or dormant opportunities are still viable, so fully expect it to be a painful process. It is an exercise well worth the effort. Leaving your pipeline overstated is putting the financial health of your company at risk before the new sales year even starts.
Keep focused on what a huge favor you are doing yourself as 2010 sales planning unfolds. Knowing your true pipeline value is imperative to effective sales planning and revenue forecasting. Having a realistic pipeline picture will also help you make your case for any necessary investments in your team to make them capable of meeting the 2010 sales number.
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