While setting an accurate sales forecast for direct sales teams is pretty straight-forward, doing the same for channel-partner sales can feel like an impossible challenge. You don’t have the same level of oversight and your forecast is oftentimes victim to overly optimistic partners, gut feeling and a lack of actual data. This creates a situation where you’re oftentimes in the dark and have to rely on qualified guesswork. Which might not always be right.
You probably already know how important an accurate sales forecast is for modern channel sales. Especially in this post-pandemic world of ours when suppliers want larger commitments from the start and your sales forecast is literally the thing standing between having too much stock or too little. Which, in turn, only adds to the urgency: channel-sales companies need accurate forecasts, and they need them now.
It’s not that easy, though. Working with channel partners means a unique challenge when it comes to setting an accurate forecast, a challenge that is directly impacted by a number of problematic facts. To help you navigate them, we’ve compiled a list of some of the most common problems and ways to solve them.
5 potential problems for an accurate indirect sales forecast
1. A lack of direct control over external sales teams
With indirect sales, your team is your team. You can quite easily gain a solid overview of performance and can usually get the data you need to set your forecast. This is not really the case for indirect sales, where your channel partners are more or less detached from you and you may not have direct visibility into their day-to-day activities, processes, or pipelines. Something that makes it substantially more difficult to collect real-time sales data or gauge partner motivation and efficiency.
Solution: Nurture a strong relationship and create a direct line of communication with your partners. Make it easy for them to report, find ways to gain a visual over their activity and continuously check in to align around goals and expectations.
2. A lack of engagement
A channel partner may start out optimistically only to lose engagement over time. They may become frustrated by a lack of material, or it might be difficult to work with your product and find what they need. This can easily turn into a forecast nightmare where a projection is not even close to being lived-up to.
Solution: Make it easy to work with you. Keep your channel partners close and make sure they have what they need when they need it. Keep them in the loop on product updates and earn mindshare by responding to questions promptly and continuously sharing news and new material. Remember, keeping a partner engaged is not only the way to a more accurate forecast but also the way to more sales.
3. Inconsistent sales efforts
Channel partners are probably selling multiple products, including products made by competitors. You’re constantly competing for their attention and your product might not be their top priority. And if they don’t focus as much on your brand, their sales predictions can be unreliable or overly optimistic. Both of which spell trouble for your forecast.
Solution: Create incentive programs or commission structures that properly reward partners for selling your product consistently. Keep them engaged by staying in touch and answering questions, and provide them with the material and training they need. You can also offer co-marketing opportunities to make them feel truly co-responsible for your mutual success.
4. Market Variables
Your channel partners may be exposed to a variety of market conditions that depend on things like region and customer base. This can potentially skew your forecast, especially when some partners may thrive while others struggle.
Solution: Do regional analyses and adjust forecasts based on local market trends. Keep a close eye on channel partners and find a way to get a visual on interactions, results and activity. That way, you can quickly catch a partner that isn’t performing and help them turn things around.
5. A feedback loop that is not instantaneous
As you’re not really in direct contact with customers, delays in feedback are bound to happen. A partner may close a deal while you don’t receive the data until much later. And by the time you do and see that there’s a gap in your forecast, it might already be too late.
Solution: Use analytics tools to monitor and adjust your forecasts. Find tools that let you gain an overview of end customer interactions and that give notifications for relevant events.
The SP CE way to an accurate sales forecast
SP_CE can help you navigate these problems by giving your partner one portal for their entire journey with you. A portal where your partner can reach everything they need, where they can access material and ask questions, receive training and learn everything there is to know about your product. All while you can see detailed analytics of partner interactions, track progress and even get a visual of customer interactions.
That way, it becomes easier for your partner to do business with you, and easier for you to gain the oversight you need to set a forecast that is more accurate than before.
Curious to learn more? Contact us today to see SP_CE in action or check out our Partner Portal FAQ here.
