Sales forecasting is critical in understanding business health and to make strategic sales decisions. Precise sales forecasts helps you get an overview of how your sales team is performing against their sales target, foresee demand for every product, allocate resources efficiently, and provide visibility into cash flow to devise financial plan for growth.
Organizations need a reliable solution to develop precise sales forecast that can help sales teams to make strategic sales decisions.
Sales forecasting feature in Microsoft Dynamics Business Central play a crucial role in any aspect of your sales process.
Here we explain what is sales forecasting and its importance in your business sales
Sales forecasting refers to the process of estimating an organization’s sales revenue within a time frame – generally within 6 months or a year. This gives a picture of how much your business will sell within the given time period. Sales forecast is being done with a high degree of accuracy. Sales forecast can be based on the inputs from sales representatives or even artificial intelligence (AI).
Accurate sales forecast gives a boost to business success and growth. It forms the basis for other business functions such as hiring, compensation, payroll, marketing, and inventory management. So accurate sales forecast is imperative to business credibility and success.
Forecasting is closely associated with your sales pipeline. The different stages in the sales pipeline provides data for a reliable sales forecast. Sales forecast leverages business and customer data to provide a precise prediction of your sales performance.
What are the sales forecasting methods?
Organizations use various sales forecast methods based on their sales processes and structure. The following could be used for prediction
Historical data
Use of historical data is perhaps the most common approach. Dynamics 365 sales use organization’s historical data and the future sales are predicted based on various factors like purchasing trends, purchase history and interests. The belief is that the historical data contain information to adequately predict the future sales.
Funnel-based approach
The current state of the sales funnel is considered as the critical element for determining sales outcomes by many companies. When sales teams are often providing precise and updated information about the sales journey, sales funnel can be a reliable source to be relied upon to predict future sales.
Forecasting based on multiple factors
Some companies build complex sales forecasting models that integrates AI and lead scoring methods along with other factors that are likely to produce better outcomes. Ultimately the move is to use the best approach that is not so complex and easy to manage.
Why is sales forecasting important to your sales performance?
- Sales teams can easily achieve sales quota with industry leading sales forecasting process
- Helps teams to attain their goals by discovering early warning signals in their sales pipeline
- Good sales forecasting models helps to improve cross-sell and up-sell opportunities.
- It helps to strengthen revenue efficiency with insights into the behavior of valuable customers
- Sales forecast helps to improve pricing, product development and advertising
- Provides a better picture of your sales analysis, i.e., how much does your product contribute to your sales margin
- Reliable forecasting enable sales teams to respond with less errors. This helps your sales team to decide on hiring decisions, allocation of resources and manage risk
- Effective sales forecast equip your business to accurately predict cash flow and deliver payments.
- Enable your sales teams to identify sales risks, and sales managers can keep track of sales performance. They even can provide coaching for sales teams when the sales performance goes down.
- Sales leaders can use the projected estimates to change the product approach to stakeholders.
Who can create sales forecast in Dynamics 365 Sales?
Sales managers can create a forecast of their team to accurately predict revenue for a given period and make meaningful decisions, and predict performance of the sales teams
Sales people can create forecast for themselves to know their performance, i.e., if they will reach their sales target in a time frame, to identify sales risks, and prevent the slipping away of sales opportunities.
To improve sales performance with reliable sales forecasting feature, it makes sense to deploy Microsoft Dynamics 365 Sales within your business. Rely on the expertise of Microsoft Gold Partners who are knowledgeable in Microsoft Dynamics 365 implementation.
If your business is in any of the Middle East, Asian or African countries, get the support from reliable Microsoft Dynamics 365 Partners in UAE, Saudi Arabia, Oman, Qatar, Bahrain, Kenya, Germany, Canada, Pakistan, and India.
Close deals quicker with Microsoft Dynamics 365 Sales
Microsoft Dynamics 365 Sales is a sales automation solution thathelps you get a leading edge in the changing landscape. It is loaded with features and tools to make your sales proactive, all by maintaining robust relationships with customers.
With different Dynamics 365 Sales licensing plans available, you can pick the one that perfectly matches your business requirements. The licensing plans include Dynamics 365 Sales premium, Dynamics 365 Relationships Sales, Dynamics 365 Sales Enterprise, and Dynamics 365 Sales Professional.
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Your Microsoft Dynamics 365 partner can help you choose the plan for your business.
Dynamics 365 consultants will provide necessary customization, integration, support and training. the benefit is that the Dynamics 365 Sales can be integrated with Dynamics 365 Sales Insights, Dynamics 365 Customer Insights, Microsoft 365, Power Platform, third-party apps and other Dynamics 365 apps.
You can utilize the expertise of Microsoft Dynamics 365 Implementation Partners in UAE, Saudi Arabia, Oman, Qatar, Bahrain, Kenya, Germany, Canada Pakistan, and India.