Sales Forecasting
Quick definition
The process of predicting how much revenue you will generate in a specific period based on your pipeline.
Detailed explanation
Sales forecasting gives you and your management visibility into future revenue. It is essential for resource planning, budget allocation, and investor/board communication. There are different forecast methodologies: opportunity-based (sum of your pipeline x win probabilities), historical (based on past performance trends), pipeline coverage (how much pipeline you have relative to your target), and AI-driven predictions. A good forecast is accurate (within 10% of actuals), timely (weekly/monthly updates), and actionable (you know what to do to close gaps). Research shows that only 45% of companies have accurate forecasts - often due to poor data hygiene, optimism bias, or lack of process discipline.
Synonyms
Examples
Q2 target: €500K. You have €1.2M in pipeline, average 30% win rate, so forecast €360K. Gap of €140K → you need €470K additional pipeline. Forecast meeting results in action plan to close that gap.
A company forecasts €2M but closes €1.4M (30% miss). After analysis: reps had estimated probabilities too optimistically. By implementing rigorous forecast reviews, accuracy improves to 95% within 2 quarters.
When to use this?
Conduct weekly forecast reviews with your team, where each rep discusses their top opportunities. Use multiple forecasting methods and compare them. Track forecast accuracy over time and learn from misses. Be conservative - better to positively surprise than miss commitments.
Match-day approach
Match-day implements forecast discipline in your organization. We build forecast models in your CRM that automatically perform calculations, train your team in correctly estimating probabilities, and facilitate effective forecast meetings where you not only discuss numbers but also create action plans. We also help with forecast rigor - deals must meet certain criteria to be in the forecast, which dramatically improves your accuracy.
Related terms
Predictive Analytics
AI-driven analyses that predict which leads, deals, or actions have the highest chance of success.
Deal Velocity
The speed at which deals move through your pipeline from first contact to closed won.
Revenue Operations (RevOps)(RevOps)
A holistic approach that aligns sales, marketing, and customer success to maximize revenue growth.
Learn more
Wil je weten hoe je sales forecasting effectief inzet in jouw organisatie? Neem contact op met Match-day.
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