Last Revised: 27 May 2020 Written by Veloxity CRM Time Estimate: About 4 minute.s to read. Version 2.0
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.
Forecasting Configurations enables you to set up the following:
- Month your fiscal year begins
- Forecasting Interval
- Minimum Sales Stage to include in Forecast
- Minimum Probability to include in Forecast
- Recalculate Forecasts
How can I use Forecasting?
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.
Forecasts 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.
- Enable the use of Veloxity AI and use machine learning to set Sales Stage Probabilities. Veloxity's Automatic Generation of Sales Stage Probabilities maximizes your forecasting accuracy by including probability thresholds into your forecasts. Instead of guessing probability, Veloxity learns the probability of an opportunity closing at each stage of the sales process based on your company's historical data for Opportunities closing at each stage. This probability is then used to generate your forecasts.
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?
To setup your Forecasting Configurations, enter the following information:
- Select the month marking the beginning of your fiscal year.
- Select your Forecasting Interval.
- Select the Minimum Sales Stage to include in the Forecast. (See below for more information on Sales Stages.)
- Select the Minimum Probability to include in the Forecast. (See below for more information on Probabilities.)
- Click Save.
- Click Recalculate Forecasts.
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 for the user:
- Forecast Period enables you to quickly scroll through different forecast periods. Configure the Start Month of Your Fiscal Year along with your Forecasting Interval to setup Forecast Period.
- Aggregate Forecast displays the current total Forecast for this Sales Division based on data rollup for the selected Forecast Period. Configure the Minimum Sales Stage and Minimum Probability to view the Aggregate Forecast.
- My Forecasted Amount displays the current individual forecast for the selected Forecast Period. Configure the Minimum Sales Stage and Minimum Probability to view My Forecasted Amount.