Intelligent Sales Forecasting
Coming up with an accurate forecast is challenging for sales organizations of all sizes and industries for a number of reasons. Find out what they are and how you can overcome these obstacles..
What is Sales Forecasting
Sales forecasting is the process of estimating future revenue by predicting the amount of product or services a sales unit (which can be an individual salesperson, a sales team, or a company) will sell in the next week, month, quarter, or year.
At its simplest, a sales forecast is a projected measure of how a market will respond to a company’s go-to-market efforts.
Improve Your Sales Forcast Accuracy
5 Simple Steps to Improve Your Sales Forecast Accuracy
- Clean Up Your Data. One of the leading causes of missed forecasts is bad data. …
- Get Granular. Identify factors that impact the probability of closing a deal by tracking granular data within your CRM. …
- Compare Models. …
- Hold Salespeople Accountable to Their Forecasts. …
- Keep It Simple.
Why Accurate Sales Forecasting Matters
- A sales forecast helps every business make better business decisions. It helps in overall business planning, budgeting, and risk management.
- Sales forecasting allows companies to efficiently allocate resources for future growth and manage its cash flow.
- Sales forecasts help sales teams achieve their goals by identifying early warning signals in their sales pipeline and course-correct before it’s too late.
- Sales forecasting also helps businesses to estimate their costs and revenue accurately based on which they are able to predict their short-term and long-term performance.