Getting an accurate reading on upcoming revenue is very helpful for budget planning. With it, businesses can forecast and plan investments or create contingency plans when necessary. How can you ensure that you are getting an accurate forecast of your future revenue? Here are some tips.
Check (and recheck) the Estimates
If you ask your sales staff for estimates of what they’ve got in the pipeline, you might be better off double checking and running the numbers yourself since sales staff may tend to overestimate in order to please a manager. Check their potential deals, the value of those deals, and produce three models (low-medium-high) to determine how many sales may actually close.
Consider the Market
Ah yes, the economy. Casting the crystal ball aside, sales people can get a feel for how clients will react. No matter how well the company is doing, a sudden economic downturn (or upturn) can disrupt how a client or prospect will react. New advances in technology may create demand for your product or services or may eliminate the need for them. Always keep market trends in mind.
Nothing is Guaranteed
The success of new products, favorable conversion rates, profitable marketing campaigns, etc. are not guaranteed. A new product could launch late, and conversion rates may change. A marketing campaign’s impact on client interest could be completely different than what was expected. A reliance on assumptions creates inaccurate forecasts. However, with the amount of data available, companies have the ability to greatly improve the odds of success. Take the time to consider the five most important factors to successful sales for your product and how data mining could enhance the likelihood of a favorable outcome.
Want to learn how to take your strategy into the market & drive a strong sales pipeline? Register for our webinar: goo.gl/pmHPAz!