Make your sales forecasting more accurate with these techniques
In business, effective sales forecasting helps you estimate future sales. According to Trackmaven, accurate sales forecasts enable companies to make informed business decisions and predict short-term and long-term performance.
HubSpot columnist Gregg Schwartz has shared four useful strategies to help marketers and brands create an effective sales forecasting model.
Focusing on use of historical data for forecasting, Schwartz says, “Most large companies have historical data they can use to determine realistic sales forecasts. If your company hasn’t implemented analytics and other forms of tracking methods that can be tied to goals and conversion rates, do so now. You need to know where you’ve been so you can accurately forecast where you’re going.
It’s true past sales are not always accurate predictors of future performance; this year you might release new products, expand into new markets, face an increase in competition, etc.
But historical data is a solid foundation on which you can stand as you weigh additional, unpredictable factors that could increase or decrease sales in the upcoming year. These are scenarios you can weave into your presentation of firm numbers for your final forecast”.
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