Home » Inability to forecast sales revenue could hurt your B2B growth. What should you do?

Inability to forecast sales revenue could hurt your B2B growth. What should you do?

by | Aug 10, 2021 | Uncategorized

How much of outreach effort is required this quarter to hit revenue targets?

Do we need to introduce automation to accelerate processes?

The answers to these questions lie in your sales forecasting data.

Yeah, sales forecasting is both an art and science for any B2B organization.

Why Sales Forecasting Matters

  • A sales forecasting process enables an organization to have a long-term business plan in terms of budgeting, planning, setting goals and risk management.
  • Sales forecast enables companies to manage their cash flow along with the allocation required for resource management.
  • It helps the entire team to achieve the target by identifying early signs of problems in the sales pipeline and correct it before it affects the business.
  • With real-time data, it helps businesses to estimate their total cost and predict long-term and short-term performances.
  • Sales forecasts helps businesses to execute financial planning, decide funding capital needs to maintain a positive cash flow position etc.

When a company or organization misses its quarterly or yearly sales forecast it ends up having a negative impact on its valuation in the long-run. A data from CSO Insights shows that 60% of forecasted deals do not close. On the other hand, another data also shows that 25% of sales managers and management is miserable that their sales forecast isn’t accurate.

However, choosing the right sales forecast techniques is tough. Let’s discuss a few popular techniques here.

Enterprise-grade Tried & Tested Revenue & Sales Forecast Techniques:

 The “Lead Value” Sales Forecasting Method

The lead value model forecast focuses on analyzing the historical sales data from each of your lead sources. With these lead sources, you can create a forecast based on the value of the lead source.

The lead value forecasting method requires certain metrics such as:

  • Leads per month for a previous time period.
  • Lead to customer conversion rate by lead source.
  • Average order value.

 The Calculations:

The “Opportunity Creation” Sales Forecasting Method

This model helps to predict the opportunity that is more likely to close based on the behavioral and demographic data. With the entire data of behavioral and demography, we can get a better probability of the expected value of the deal.

The “Opportunity Stage” Sales Forecasting Method 

Among all the sales forecasting techniques available in the industry, this method predicts the probability of an opportunity to close based on the current status of your prospect in the sales cycle.

With data on the average sales cycle and different stages of your sales process, you can understand the criteria of each opportunity stages

Deal Stages Example:

  • Appointment scheduled(20%)
  • Presentation Delivered (60%)
  • Qualified to Buy (20%)
  • Contract Sent (90%)
  • Closed Won (100%)
  • Closed Lost (0%)
Sales Cloud: The crystal ball that your business needs.

Sales forecasts all too often get mired by internal opinions, conflicting information and data silos. With Sales Cloud organizations gain the automation and visibility needed to know where they are and where they could be.

Sales Cloud offers:

  • Complete visibility and control of the sales pipeline
  • Leaderboards to bubble up top performers/ top performing sales teams
  • Sales overlays for organizations that have complex, multi-tiered sales processes
  • Customizable reports and dashboards that act as a single point of truth.
  • AI powered insights and workflows.
Need some help in setting up your sales forecast with Salesforce?

 Implementing the right technology is just the first step. With DemandBlue, your organization can take the next steps. We set up custom reports, automate processes, provide role-based access and go above and beyond to ensure that you get the most out of your Salesforce investment.

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DemandBlue has been helping customers achieve success with Salesforce for over ten years. To learn more about DemandBlue’s unique on-demand services offering please reach out to one of our Salesforce experts. We look forward to helping you grow your business with DemandBlue!