Sales forecasting is crucial for a company. It predicts what the team or a salesperson will sell at a certain period, including weekly, monthly, quarterly, or annually.
While it may be difficult to come up with a perfect forecast, collecting the right metrics will help you have accurate sales forecasts.
Customer data is crucial in forecasting, and sales metrics are among them. These represent the performance of the company, team, and individual. Sales metrics help gauge progress towards the company’s goals. They can also be useful in defining the revenue target of the company.
Failure to have accurate metrics will lead to inaccurate sales forecasts, which will be detrimental to the growth of the business. That means the best method relies on tracking the right sales metrics.
If you do not know where to start, you can go back to the basics. Here are three metrics you should know:
This indicator will give you an idea of what is happening in the days, weeks, and even months that lead up to a sale. At the same time, it also shows you what materials best resonate with clients who make purchases.
Tracking the pipeline the company historically needed to hit certain targets will help determine the pipeline you will need in the future.
To measure this metric, you will have to look at the overall quota goal of an individual for a certain period. Then, measure the percentage closed over the said period.
Sales forecasting is a valuable source of data. So, it is important to use the right metrics.
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