For success in business, companies always
have the need to eliminate unknown quantities and factors. This involves making
some educated guesses, or taking past data and using insight to extrapolate
from there. Sales forecasting is one such activity that companies have to do
routinely to know exactly where things are headed in the immediate future. Although
based in facts and statistical data, sales forecasting involves intelligent guesswork.
Since having accurate sales forecasts is essential to the operations,
strategies, and overall fortunes of a company, it is extremely important to get
things right on this front.
The Basics of Sales Forecasting
Sales forecasting involves making as much
of an accurate prediction as possible about the future opportunities and risks
regarding sales. During sales forecasting, managers have to consider various
different factors, consider every likely future sale and bring everything
together until it becomes a concrete forecast.
One of the major problems companies face
with sales forecasting is the dependence on the intuition of sales
representatives. Usually, the sales manager has consultations with every single
sales representative, who provide individual forecasts based on their intuition
and their perceived ability to close sales. These views are then compiled,
edited, modified if needed, and used as the sales forecast for the immediate
The problem with this approach is obviously
evident. Since a lot of guesswork and intuition is involved here, there is
always a chance of error. Also, there is no individual responsibility for
making those forecasts, which means that no one can be held accountable if
things go wrong. There are also many data streams to consider, and without
accounting for all of them in-depth, accurate sales forecasts are not possible.
Solving the Problem – The Right CRM
One way that companies can take out the
element of doubt and guesswork from sales forecasts is through the use of the
right CRM platform. CRM platforms provide companies with a lot of features, and
with the right platform which supports sales forecasting, the job can become a
lot easier. Using a CRM for sales, managers can take a look at the sale
pipelines of each sales representative at a particular point of time in the
context of company-wide sales.
Taking into account various factors like
success ratio and average time taken by each salesperson to close, a more
accurate sales forecast can be arrived at easily. A good CRM solution is also
scalable and adaptable, allowing companies to tailor CRM features according to
CRMnext by Intellika
CRMnext by Intellika is a flexible, versatile and robust CRM solution that
can provide your company with the ability to make accurate, timely sales
forecasts. With excellent features like sales force automation, currency
management and marketing automation, CRMnext goes beyond traditional CRM
solutions, helping you build your business plans on the back of accurate sales
forecasts. Apart from handling all your usual CRM needs, the platform helps you
get an authentic yet lucid vision of the future, so you can handle production
and sales with ease.