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What is Sales Forecasting: Definition, Methods and Challenges

What is sales forecasting

What is sales forecasting? Sales forecasting is a process of predicting future sales performance based on data from past sales trends and market research. A sales forecast is a projection of future sales revenue and a prediction of which deals will move through the sales cycle.

It helps businesses to plan for the future by understanding their current performance, anticipating customer needs, and evaluating market changes.

Sales forecasting also helps businesses make better decisions about pricing, product development, marketing strategies, and more.

Benefits of Sales Forecasting

Sales forecasting offers several benefits to businesses. It helps them anticipate customer needs and market changes, develop more accurate pricing strategies, plan resources more efficiently, predict future trends in the market, and improve customer service. Sales forecasting also provides a competitive edge by allowing businesses to adjust quickly to changing markets and customer preferences. With the help of a CRM (customer relationship management), there’s very little admin overhead, and it gets your sales team in the habit of keeping track of future wins. Using this method, sales managers ask their sales reps to provide an estimate of how many sales leads they expect to close within the next month. Understand your current sales pipeline. If you want to achieve better forecasting, accuracy starts now. Read more about the benefits of using sales forcecasting software