3 Metrics That Will Help You Achieve Accurate Sales Forecasting

 
Team ThunderAct

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.

 

Sales Metrics: What They Are


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.

 

Three Metrics for Accurate Sales Forecasting


If you do not know where to start, you can go back to the basics. Here are three metrics you should know:

 

  • Activity Data – This refers to any activity the sales or marketing team performs throughout the sales process to close a prospect. Activity data may refer to many things, including ads, blogs, direct mail campaigns, ebook downloads, emails, and phone calls. 


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.

 

  • Pipeline Coverage – Another metric you should use is pipeline coverage. It refers to the total amount of sales opportunities compared with the quota. It gives you an idea of how much of a buffer the team may have to hit the target number. In short, having more pipeline gives you more wiggle room in case the size of deals decreases or they get pushed out. 

 

Tracking the pipeline the company historically needed to hit certain targets will help determine the pipeline you will need in the future. 

 

  • Attainment – The third metric every sales team should know is attainment, which is the tracking of data between sales goals and closed deals. At the same time, it can be used in identifying members of the team who need help or coaching. It may even help show if there is a need to make structural changes.

 

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. 

 

If you want to learn more about customer data analysis, contact ThunderAct.

Did you like the article? Help us spread it 🚀

Our other top stories:

Stay up-to-date

don’t miss any of our top articles