If sales is the lifeblood of an organization, then sales forecasting is that company’s white blood cell count. Like white blood cells, healthy forecasts protect enterprises from adverse competitive and market conditions, and position them to adapt, plan, and thrive in the present and future.
While I can’t imagine that anything I’ve written so far is a surprise to you, you might be shocked by the latest sales forecasting statistics.
A Shocking Look At Sales Forecasting Today
Sales leaders lack confidence in their forecasts, as well as the expertise to improve them. Unformalized forecasting processes are a likely culprit.
- 93 percent of sales leaders are unable to forecast revenue within 5 percent, even with two weeks left in the quarter.
- 67 percent of organizations lack a formalized approach to forecasting altogether.
- 80% of sales orgs DO NOT have a forecast accuracy of greater than 75%.
- 55% of sales leaders do not have high confidence in their forecasting accuracy.
These statistics come from respected research institutions like CSO Insights and Gartner, and are cited below.
The Promise Of Sales Forecasting’s Potential
Aberdeen research emphatically shows that sales forecasting is a problem worth fixing.
- 97% of companies that implemented best-in-class forecasting processes achieved quotas, compared to 55% that did not.
- Companies with accurate forecasts are 10% more likely to grow revenue year-over-year and 2X as likely to be at the top of their field.
How You Can Improve Your Sales Forecasting Today
Of course, harnessing sales forecasting’s potential is an elaborate process that involves asking the right questions, understanding their answers, and collaboratively developing a process and expertise with other revenue leaders.
Over the coming weeks, we will explore all of the above in depth, and answer the following questions:
- What Is Sales Forecasting & Why Does It Matter?
- 7 Benefits of Accurate Sales Forecasting
- 6 Barriers to Sales Forecasting Precision
- 7 Macro & Micro Models for Sales Forecasting
- Today’s Hottest Tactics for Sales Forecasting
- Key Sales Forecasting Technology Players
- How Can I Improve Sales Forecasting In The Next Normal?
To get a sneak peak, download our whitepaper, Sales Forecasting In The Next Normal. It distills a blueprint for developing flawless sales forecasts during seasons of high change and low predictability.
- Lowe, Michael. “Sales Forecasting Guide,” Clari, 2020.
- “The New Sales Imperative,” Forrester Research, 2020.
- “Sales Forecasting Guide,” Anaplan, 2018.
- “State of Sales Operations & Key Findings,” Gartner.
- “The Top Four Challenges in Sales Forecasting and How to Right Them,” Miller Heiman Group, 2020.