Why Quarterly Results Are Bad For Your Business

Sales process is random

Issues and problems are events that occur randomly.
Solutions are sought afterwards which will have searches on the Internet, if possible inquiries with peers, meetings with salesmen. Again this is a process with rather random occurrences or happenings.
Decisions are taken more or less at random intervals.
Hence the sales process can be considered as a random arrival process.

Quarterly sales pressure

However companies and managers are requiring to close sales deals before each quarter and certainly before the end of the accounting year.

It is clear the sales process and the imposed quarterly goals will never match as you can’t force a ransom process into a ‘straight jacket’. In order to achieve the quarterly goals something has to give:
– The price / margin
– The chosen solution
– The switch to the competitor

Hence it would be better not to have this quarterly pressure on the sales force which is likely to result in higher revenue with a better margin.

Would your sales be better off without the quarterly pressure ?


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