Forecasting

Forecasting in Predictable RevOps differs from traditional sales team forecasting

Traditional Sales Forecasting

Traditional sales forecasting relies on individual sales reps' judgments and experience to predict future sales. Often categorizing deals based on confidence levels such as "committed", this method is typically short-term and subjective. Traditional forecasting primarily focuses on the sales team's projections with limited integration of data from other business functions.

Predictable RevOps Forecasting

Predictable RevOps forecasting uses a holistic, data-driven approach. By integrating historical deals, the 4 FACT model, channels, seasonality, and business specific dimensions, RevOps forecasts creates more comprehensive and accurate predictions. The RevOps method reduces subjectivity and aligns forecasts with overall business objectives, providing both short-term and long-term strategic insights.

Seasonality

Forecasts can be Seasonal or Non-Seasonal. Seasonal forecasts take into account year over year growth rates. Non-Seasonal forecasts take into account month over month growth rates.

Forecast Drivers / Inputs

In Predictable RevOps, our forecast drivers (or inputs) come from the historical deal records.

Revenue

Forecasts based on the prior growth rate.

FACT

Forecasts based on the prior growth rate of the Flow, Average Sale Price, Conversion Rate, and Time to Close.

FACT + dimension

Forecasts based on growth rates of FACT in relation to each component of the dimension.

Forecast Window

The Forecast Window is how many prior months you use to calculate average growth rates, typically 3, 6 or 12 months.

PredictableRevOps.org maintains the documentation of the PRO Framework and provides training certification for Partners and clients that wish to use PRO within their businesses.

PRO is sponsored by SalesInsights.io, a reporting and dashboard tool implementing the PRO Framework.

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Intro