A sales forecast is like a roadmap for companies. It’s a report that predicts how much you’ll make in the future based on what you’ve earned in the past. You can use sales forecasts to set realistic goals and chart the path forward, whether you’re looking at how much you’ll sell weekly, monthly, quarterly or annually.
Most companies aren’t great at forecasting. Some research shows that 68% of businesses miss their sales forecast by more than 10%.
How can you ensure a more accurate forecast? Elle Brayton of Spekit has a few ideas. In this issue of PromoPro Daily, we share her tips for better sales forecasting.
Don’t forecast too far in advance. This is because market and economic conditions can fluctuate and impact your sales. Brayton advises continuing to monitor your forecast and comparing it to your actual sales. Pivot as needed.
Review previous sales data. Use sales enablement tools to analyze sales data. Brayton points out Gartner research that shows that bad data costs companies an average of $12.9 million annually. Make sure you begin with quality data so you can make the most accurate sales forecast.
Analyze historical and market trends. Examining historical data is helpful in making data-driven decisions. Looking at data on market trends helps you prepare for market shifts.
Consider your overall business strategy. Are you focused more on gaining new clients or retaining your current clients? Business goals and strategies impact sales forecasts, Brayton says.
Monitor the competition. This lets you gain insight into not only other promo companies but the industry as a whole. Brayton says companies should look for their competition’s target audience, business structure, content strategy and social media performance. Including competitor data in a sales forecast enables companies to better prepare for market fluctuations.
Adjust the forecast based on actual data. Creating a culture of continuous improvement boosts companies’ productivity and improves the accuracy of their financial projections, Brayton says. Check out sales enablement tools to compare actual sales data to sales forecasts and then adjust.
Sales forecasts allow you to make educated decisions, anticipate sales and plan your budget more effectively. You can avoid being too far off with your sales forecasts by considering the points above.
Compiled by Audrey Sellers
Source: Elle Brayton is the director of content and communications at Spekit, a sales enablement platform. She has more than 12 years of experience scaling SaaS B2B organizations.
