Managing the sales forecast

The forecast provides a summary of the sales pipeline. This scenario explains how to analyze and adjust the forecast to improve the quality of the opportunity status.

To access the forecast, click Forecast.

Here you see the forecast for Noah Smith, a sales representative who owns the Northeast Territory.

You can narrow down the forecast details to determine which opportunities comprise each forecast total. You can filter the forecast using several criteria, such as Fiscal year, Sales type, Forecase territory, Reporting hierarchy, and Forecast type. Territory filtering rolls up according to the territory hierarchy. Noah can filter opportunities in the Northeast territory that he owns.

You can view one of two Forecast types: The Unweighted mode displays the opportunity amounts submitted by sales representatives. The Weighted mode displays forecast numbers based on the sales stage of the opportunity. The sale is more likely to occur if it is further down the opportunity life cycle.

The forecast displays the sales pipeline for the year, broken down by fiscal quarter and forecast category.

Goal specifies the sales goal amount for Noah for each quarter. Sales managers can have an individual goal assigned to them, in addition to the goals of the representatives on their team.

Gap to goal specifies the difference between the sales goal and the cumulative total of the opportunities with the Commit and Closed forecast categories.

The forecast categories separates the opportunities according to the likelihood of the opportunity closing for the given quarter.

Closed means the sales representative already won the opportunity.

Commit means the sales representative has high confidence that the opportunities will close in the given quarter.

Opportunities in the Best case category could close in the given quarter, but there is some uncertainty.

Pipeline opportunities may close in the given quarter, but uncertainty is greater than in the Upside category. Larger qualified deals are separated into the strech category to avoid providing an overly optimistic forecast.

Not Forecasted means that the opportunities are not included in the forecast. Quarterly subtotals exclude these opportunities.

These forecast category definitions can be redefined according to your organization's sales practices.

In the forecast, you click on the amount to display the opportunities for the given forecast category and time period.

Noah, the owner of the Northeast territory, wants to adjust the amount and the close date for an opportunity in the Q2 Commit category. He expands Q2 and clicks the amount in the Commit category: 33,000. One opportunity is displayed in the Business Opportunities list.

Noah clicks Business Voice over IP (VOIP) for Acme Tech to display the opportunity. He changes the amount to $25,000 and moves the close date out one week to April 19. The changes are reflected in the forecast:

Sophia Anderson, Noah's manager who owns the entirety of North America, can filter opportunities by any territory in North America or by all North America. When Sophia reviews the forecast for the Northeast territory, she can see Noah's changes in the forecast; this is because the forecast amounts roll up according to the territory hierarchy.

Sophia clicks the Commit category to view the updated opportunity.

If Sophia recognizes that the opportunity amount is too optimistic or realizes that close dates need an extension, she can adjust the forecast for all North America. Noah cannot see Susan's adjustment because this adjustment occurred at the North America override level.

You have reached the end of this demo.

You now know how to evaluate and adjust a forecast.