Sales forecasting is an effective tool to guide decision making and measure results. Sales forecast accuracy predicts the plausibility of achieving your goals. Done right, it drives revenue forward and increases your ability to make your number.
How can you create and manage your sales forecasts to improve accuracy? This brief guide on sales pipeline forecasting will help. It includes answers to these questions:
- What is it?
- How can I use it?
- How do I embed it into my business processes?
The Difference Between Sales Pipeline and Sales Forecasting
A sales pipeline includes every opportunity a salesperson is handling according to HubSpot. It captures the number and value of all open opportunities. Reps use it to keep track of where buyers are in the Opportunity Management process. It does not matter how new or mature it is. A sales forecast is an estimate of the opportunities likely to close in a period. It shows salespeople and sales managers how closely they’re trending toward their goals. It also helps them prepare for what’s to come.
How to Use a Sales Forecast
Typically, you will face two scenarios. The first is if your forecast predicts you’re going to miss quota. In this instance you should double down on selling activities. The second is if you’re on track to make or exceed your quota. This is where you’d want to scale back your efforts for this month. You want to focus on finding new opportunities for an equally successful next month. Pipeline forecasting requires careful monitoring and execution throughout the sales cycle.
To continue reading on Four Tips for Sales Leaders to Increase Forecast Accuracy, please log in or register