Last Revised: 02 Mar 2020 Written by Veloxity CRM Time Estimate: About 4 minute.s to read.
Jump to the following sections for more information on Working with Forecasting Configurations:
- What is Forecasting?
- Where can I find Forecasting Configurations?
- How can I setup Forecasting Configurations?
- How can I select the Sales Stages and Probabilities to include in the Forecast?
- Visualizing Forecasting from the User's View
What is Forecasting?
Forecasting is the process of estimating future sales. Sales Forecasts display your estimated sales income for a given time period based upon the Opportunity stage, Sales Stage Probability, and the Opportunity Close Date.
What do I use this for?
Accurate sales forecasts enable companies to make informed business decisions and predict short-term and long-term performance. Forecasts allow you to predict sales growth and anticipate changing market trends. They are an important strategy to prepare your business for the future and make more informed business decisions regarding how your team manages resources.
Veloxity CRM helps ensure accurate sales forecasts through standardizing and tracking the sales process:
- Setting quotas allow individuals and teams to measure their performance based on an objective target and make adjustments.
- Standardizing the sales process allows sales reps to use the same definitions and sales stages allowing the sales manager to more accurately predict future sales growth based on the opportunity pipeline.
- Visually tracking forecasts increases accountability and follow-up when a forecast is missed.
- Optional use of Veloxity AI to set Sales Stage Probabilities.
Where can I find Forecasting Configurations?
From the Home Page, click My Profile > App Setup > CRM Setup > Forecasting Configurations
Navigating Forecasting Configurations
You are looking at a screenshot of Forecasting Configurations in CRM Setup:
Figure 1. Forecasting Configurations in CRM Setup.
How can I setup Forecasting Configurations?
|Function Name||How to Use|
1. Start Month of Fiscal Year
|Select the month your fiscal year begins.|
2. Forecast Interval
|Select your Forecast Interval: Annual, Quarterly, or Monthly.|
3. Minimum Sales Stage to Include in Forecast
|This value depends on the sales stages configured in your system. Select the minimum stage you wish to use for Forecasting. Any Opportunities in a Sales Stage prior to the selected one will not be included in Forecasts.|
4. Minimum Probability to Include in Forecast
|Select the minimum probability you wish to use for Forecasting. Any Opportunities with lower probabilities than the amount specified here will not be included in Forecasts.|
5. Recalculate Forecasts
|This is useful when updating your forecasting details. Recalculates the values for all Forecasts in Veloxity CRM.|
|When making changes to Forecasting Configurations, click Save to save your Forecasting Configurations.|
How can I select the Sales Stages and Probabilities to include in the Forecast?
What are Sales Stages?
- Sales Stages define the actions the sales rep takes to move an Opportunity through your sales pipeline.
- Sales Stages are the steps of your Sales Pipeline.
Visit Setting Up Sales Stages for more information.
What are Sales Stage Probabilities?
Sales Stage Probability is the probability an Opportunity will close, and bring in the Forecasted Amount, at each Sales Stage.
As an Opportunity progresses through the Sales Stages, the probability of the Opportunity closing and the potential amount of the sale, is calculated into a Forecast using Sales Stage Probabilities.
Visit Setting Up Sales Stage Probabilities for more information.
For forecasting purposes, the probability percentage is multiplied by the forecast amount and then added to the forecast leading to more accurate forecasting. For example, low probability Opportunities will have their forecasted amount adjusted downward to account for their lower likelihood of closing.
Veloxity CRM can optionally use machine learning (ML) to determine the probability that each Opportunity will close by analyzing your company's historical data for Opportunities closing at each sales stage.
Visit Veloxity AI for more information.
Visualizing Forecasting from the User's View
You are looking at Forecasting from the user's view on Sales Divisions.
Figure 2. Forecasting - User View.
When you configure Forecasting, you are setting up these fields:
- Forecast Period (Configure the Start Month of Your Fiscal Year, and Configure the Forecasting Interval) - Quickly scroll through different Forecast Periods.
- Aggregate Forecast (Configure Minimum Sales Stage and Minimum Probability) – Current total Forecast for this Sales Division based on data rollup for selected Forecast Period.
- My Forecasted Amount / Forecasting Visualization on the Dial Chart (Configure Minimum Sales Stage and Minimum Probability) – Current individual Forecast for selected Forecast Period.