Sales Forecasting, the process of estimating future sales, the basis of a business plan … We have already shared an article about this subject here : http://www.salesbuzzter.com/single-post/2017/06/12/Sales-Forecasting but this article from Sales Hacker completes it and develops 3 easy and clear tips to create a good forecast. The author is Michael Pici, the director of Sales at HubSpot, and is a significant factor as to HubSpot’s increase in revenue from $0 to $10 million.
“According to CSO Insights, 60% of forecasted deals do not actually close. Unsurprisingly, the data also shows that one in four companies are unhappy with their ability to accurately forecast sales. That’s a lot of revenue being left on the table and a huge opportunity that I personally, am not prepared to miss out on.
While I’ll admit it’s near impossible to predict the future, there are certainly more effective and accurate ways to forecast expected revenue than what I see many sales managers doing today.
In this post I’ll discuss three sales forecasting models that have proven to be effective for us at HubSpot. In fact, we’ve seen that a combination of all three has actually given us the most accurate predictions.
I’ll give a high level overview of the concept and forecasting methodology, but I also recommend you test and tweak them to fit within your own business model before rolling them out to your teams.
Let’s get started.
#1. The Lead-Driven Model
Concept: This model involves analyzing each of your lead sources and creating a forecast based on the value of each source.
Looking at the very beginning of the buyer’s journey can tell us a lot about how that journey will end. It’s like a bad romantic comedy; there are early tell tale signs of how the story will end if you’re in any way perceptive.
By assigning a value to each of your lead sources or types, you can get a better sense of the probability for each of those leads to turn into revenue.
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