May 4, 2022
Predictable growth is helping businesses to achieve consistency year over year, and it is the forecasting where it all begins. Following the right sales forecasting tips is helping companies to make critical business decisions, manage budgets, plan the headcount strategy and investment, and know future earnings, thus helping businesses to set the North Star.
The right sales forecasting techniques can lead to predictable revenue and accurate, actionable data. The best sales forecasting techniques are able to provide answer these two simple questions: How much does the business plan to sell? And when will the business is going to deliver those numbers?
To help you better sell from anywhere, we have brought some tips that could be fruitful. It answers the most common questions we hear about sales forecasting from sales reps and leaders.
Your team should concentrate on these simple questions when building their forecasts:
You can also use your sales forecast to assess the current risk to your business, and this is called negative forecasting.
For example, you can add a COVID-19 field in Sales Cloud to tag deals and see the pandemic impact. The two key benefits of this approach will be:
Negative forecasting can help you gauge possible risks, thus making your forecast evolve with your business.
Every department relies on sales forecasts. Not a single part of the organization goes unaffected when forecasts don’t prove to be accurate.
For example, using the sales process business can prepare a plan to ship products, strategize marketing, and hire needed employees. Accurate forecasts help companies make better investment plans, like hiring a needed number of Salesforce developers or opening a new sales office in the prime territory if the requirement is identified.
On the contrary, if the sales forecasts are off, likely are the chances that the company would face challenges across all business functions – from pricing to product delivery. Everyone relies on the ability of the sales team to pull off an accurate forecast. So never underestimate the importance of your forecast.
Extreme weather, global pandemics, economic crisis, and any other such factor can be responsible to bring a dramatic change to your forecast. Even if you thought that you knew about expected revenue growth with Salesforce, all of it can suddenly flip within an instant.
This makes it important to track the accuracy of your forecasts with changing conditions and markets as you would never want to risk your strategy failing because of inaccurate forecasts.
A good sales forecast helps you make better decisions about the future. You just needed to know the right tips that can take you across. With accurate forecasting, you’ll know if you should prepare for a rainy day? Or will you just need sunglasses and smooth sailing?
Become a forecasting pro to put resources and energy in the right places so you can continue to thrive with the help of our Salesforce consulting services, offered by certified and experienced professionals.