{"id":3677,"date":"2018-09-03T16:52:00","date_gmt":"2018-09-03T15:52:00","guid":{"rendered":"https:\/\/liminal.pt\/martech-magazine\/?p=3677"},"modified":"2021-08-11T16:52:44","modified_gmt":"2021-08-11T15:52:44","slug":"sales-forecasting-how-to-make-reliable-sales-forecasting","status":"publish","type":"post","link":"https:\/\/liminal.pt\/martech-magazine\/en\/sales-forecasting-how-to-make-reliable-sales-forecasting\/","title":{"rendered":"Sales Forecasting: How to Make Reliable Sales Forecasting"},"content":{"rendered":"\n

Forecasting your company’s sales correctly can be a challenge, however, when done well, this work becomes essential for your strategy and for achieving your goals. With a reliable sales forecast you can make the necessary corrections and prepare for any eventuality. <\/p>\n\n\n\n

However, the sales forecasting process is not always easy for business managers and can have serious consequences. Only 31% of companies consider their sales forecasts to be efficient<\/strong>. (Sales Management Association)<\/p>\n\n\n\n

If you overestimate your sales you will spend money with low probability of return, if you underestimate you may be unduly prepared for too great a volume of demand. Either situation can put your sustainability at risk, making it crucial to forecast your sales correctly. <\/p>\n\n\n\n

Estimating sales is as much an art as a science, yet it depends essentially on two factors:<\/p>\n\n\n\n

\u00a0\u2013 Have the correct data;\u00a0<\/strong><\/p>\n\n\n\n

\u00a0\u2013 Make the right conclusions from your data.\u00a0<\/strong><\/p>\n\n\n\n

What is Sales Forecasting <\/strong><\/h2>\n\n\n\n

Sales forecasting, is the process of forecasting the number of closed deals won in a given period of time. This set of methodologies should allow anticipating provisioning needs and availability of after-sales resources, but should also allow implementing corrective measures at the exact moment when any kind of deviation from the defined commercial objectives is verified. <\/p>\n\n\n\n

5 Methods of Sales Forecasting<\/strong><\/h2>\n\n\n\n

In order to effectively evaluate all opportunities in your sales pipeline, it is necessary to have some forecasting parameters. These parameters, when correctly used, can feed an entire sales forecasting system, governed by methodologies such as:\u00a0\u00a0<\/p>\n\n\n\n

1. Probability by funnel stage<\/strong><\/h3>\n\n\n\n

First you need a well-defined sales process in logically progressing stages. Once you have the sales process you can set a percentage for each stage. This percentage represents the probability of a deal being closed. As the lead moves through the stages, the probability of the deal being closed increases. This is the simplest sales forecasting method. <\/p>\n\n\n\n

2. Probability per salesperson valuation<\/strong><\/h3>\n\n\n\n

Another way to forecast your sales is by incorporating a manual fill-in field in your CRM. It is expected that in any business this field will be filled in by your sales person. This field has several options such as very likely, likely, not very likely, which can be crossed with the indication of the business temperature (cold, hot, warm) and the expected decision period.<\/p>\n\n\n\n

This method can be very fallacious, since it is too exposed to the cognitive biases of each person.\u00a0<\/p>\n\n\n\n

\"previs\u00e3o<\/figure><\/div>\n\n\n\n

Scoring of BANT or MEDDIC variables  <\/strong><\/h3>\n\n\n\n

In order to eliminate the impact of emotion on sales forecasting, it is necessary to use a methodology that generates a score for each transactional variable, such as those used in the following business qualification processes: <\/p>\n\n\n\n

BANT <\/h5>\n\n\n\n