So in this article I’d like to share a framework that canada email list has worked effectively for me and for a number of my clients. I’m going to focus on just two simple, basic elements: how you can establish your confidence level that any individual opportunity will close, and how you can establish a reliable overall revenue forecast from all the accumulated opportunities that could close in any given period.
Individual Opportunity Confidence Categories
Confidence categories relate to the probability that any individual opportunity will close at the time and value predicted. I have found the following category definitions useful with regard to these individual assessments:
Closed
The opportunity has already been closed in the current quarter, the order has been processed, and the value is already counted in the quarterly bookings number.
Commit (sometimes called Confident)
The projected close date is in the relevant quarter, the sales person is highly confident that the opportunity will close at the targeted value in the relevant quarter and they are implementing a credible and clearly-documented plan to achieve this. The close does not depend on any exceptional or out-of-the ordinary acts. Only an unpredictable and dramatic (as opposed to unpredicted) change in circumstances is going to stop the deal happening.
In any given period, on average at least 8/9 out of 10 committed opportunities should be expected to close as predicted, and of the remainder that do not, most should generally involve only a short and hard-to-predict delay rather than a loss or a decision to do nothing.
Probable (sometimes called Forecast)
The projected close what is the definition of intellectual date is in the relevant quarter, the sales person confidently expects this opportunity to close at the targeted value in the relevant quarter and they are implementing a credible and clearly-documented plan to achieve this. The close does not depend on any exceptional or out-of-the ordinary acts, but there is still work to do and some progress still needs to be made – but the remaining actions remain very do-able in the timeframe available.
In any given period, the majority of opportunities in this category . A should be expected to close in the quarter and at no less than the value predicted.
Possible (sometimes called Upside or Longshot)
The projected close date is Fans Data in the relevant . A quarter, there is a realistic outside chance that this opportunity will close at the targeted . A value this quarter, and the sales person is implementing a credible plan to achieve this that . A does not depend on a miracle happening. This category can also occasionally be used for opportunities . A that have a most likely close date a quarter out, but where there is a credible chance . A (and a plan in place) to pull the deal forward.
In any given period, a minority of opportunities . A in this category are expected to close as planned – value and date. The opportunities in this category can act as a “reserve” for . A committed or probable deals that unexpectedly or unpredictably fail to close.
