In the sales world, precision in forecasting is not just a goal, but a necessity. The ability to accurately forecast future sales and revenues affects every aspect of a business, from supply chain management to budgeting and strategic planning. A Harvard Business Review study stressed that companies with accurate sales forecasts 10% more likely to grow their revenues year-on-year and 7% more likely to meet their quota. As the Swiss build watches, so should sales forecasting be approached.
Data-driven prediction: The New Standard
In the digital age, relying on gut feeling alone is no longer enough. Advanced tools such as predictive analytics can increase accuracy by analysing previous sales data and market trends. So it is high time to embrace this technology. Just as a CRM or an ERP has become self-evident over the years, so data-driven forecasting will become equally evident in the coming years.
Big data enables sales teams to better understand market dynamics and predict customer behaviour more accurately. And better predicting customer behaviour makes for better actions. Doing the right thing, at the right time, in the right way. "Mr Desmet, we are just calling to let you know that we are offering a fantastic discount on product X." And nothing in that sentence is a guess. We know that Mr Desmet is now in the market and that he is price sensitive and that he is interested in product X.
AI takes accuracy to astronomical heights
AI-powered tools allow you to plough through huge amounts of data and identify sales patterns, offering predictions with a higher level of accuracy. AI algorithms are constantly learning from new data, meaning that the more they are used, the more accurate they become.
Where do they get the basics from?
From your CRM and ERP system. A robust CRM system can provide valuable insights into customer behaviour, which is crucial for accurate forecasting. Here again, the sales team has a crucial role to play. Better logging and tracking is better output is better forecasting.
From nice to have to must have
By using the right mix of technology and data analytics techniques, sales professionals can significantly improve the accuracy of their forecasts. Tools such as AI, big data analytics and CRM systems are not just trends; they are essential in the modern sales toolkit.
