How to Predict Future Revenue
Are you wondering how to improve forecast accuracy, predict future revenue and close more deals?
In a recent survey, CSO Insights reports the following major barriers to a company’s ability to predict future revenue:
46.6% Reps are too optimistic about close possibilities
34.1% Not enough predictive information
30.5% Information is not accurate enough
19.3% All reports are backward looking, not useful looking forward
There is a solution that removes these major barriers to your ability to forecast accurately and can help you not only predict future revenue, but significantly influence it! It’s by utilizing the Net Promoter Score.
The Net Promoter Score is proven to be one of the only data-driven predictors of future revenue and here’s why. NPS captures loyalty, not just satisfaction. A satisfied customer means they have received enough value for what they paid. A loyal customer means they want to continue to do business together and would actively help grow your company through referrals, too!
How does it work? Let’s use a couple of examples.
Your Sales Rep is certain he is going to close additional business with one of his clients and forecasts it as so. 46.6% of the time, it’s too optimistic. What if you could get NPS feedback that could not only provide accuracy data, but could point out areas of concern — before it’s too late? For example, let’s imagine the NPS result is a 7. That is low neutral which means they can easily be swayed by the competition. What if the NPS is a 5? They are not at all interested in continuing to purchase from you. And, the beauty is that you can get this feedback from multiple parties; Key Decision Influencers and the Key Decision Maker. If they all score you a 9 or a 10, they are active promoters and loyal customers. The rep is likely correct in the ability to close the business.
Or, how about the 36% that do not have enough predictive information about your future revenue? If you utilize NPS, you can tell the level of loyalty each of your client contacts has with your organization. If you find you are scoring low, you can immediately take action to understand where you are falling short and protect your clients from defection. If you score a 9 or 10, you can quickly take action to drive referrals, both internally and externally.
Butler Street Research has developed a Net Promoter Score Process specifically for the print and digital industry. If you would like to be able to better predict future revenue, and understand overall industry trends and benchmarks, sign up for the Best of Print and Digital at www.aremyclientsloyal.com.
Butler Street, a leading management consulting, training and research firm focused on client and talent development, has formed an alliance with Printing Impressions, America's most influential and widely read resource for the printing industry, to provide the de facto industry standard for measuring customer loyalty through its Best of Print & Digital Customer Survey.
If you are interested in understanding how Net Promoter Score and the Best of Print and Digital can help you grow your business, go to www.bestofprintanddigital.com
To take part in the 2017 Best of Print and Digital go to www.bestofprintanddigital.com.
Click here to watch the Printing Impressions interview with Mike Jacoutot, founder of Butler Street, and Mark Subers, president of Printing, Packaging and Publishing at NAPCO Media, as they discuss the new partnership program.
Mary Ann McLaughlin serves as a Managing Partner at Butler Street, a leading management consulting, training and research firm that focuses on client and talent development. Prior to Butler Street, she served in executive roles for 13 years including chief operating officer, president and managing director. A Six Sigma Champion certified executive, McLaughlin leverages her robust process background with 32 years of sales and operational experience.
A recreational triathlete, McLaughlin has completed three marathons (Chicago 2x, Marine Corps) and numerous triathlons. She holds a B.S. in Marketing from Bradley University.