The Importance of Revenue Planning
Managing revenue process without careful planning is not a recipe for success. Effectiveness in sales starts with planning. To be successful, planning must involve a range of stakeholders from various roles, use a systematic process, incorporate all relevant information and be supported by capable software designed for this purpose. Furthermore, everyone who participates in revenue-related activities including dealing with quotas and territories should provide input for revenue planning. Without broad participation the likelihood of unforeseen circumstances and anyone who is excluded may not fully buy into the plan and its execution.
Our research on business planning finds that typically the revenue forecasting process is not managed well. It matters how well the process is managed. Properly done, sales and revenue planning can help improve every aspect of sales. For example, it is critical to plan to attain maximum outcomes from quotas in each territory; planning helps people focus on what can be achieved in their area and thus to be more efficient. Forward-looking, what-if analysis of the accounts and customers in the territory and their potential interest in products and services can enable better decision-making about next steps.