What is sales prediction & why is it important?

This information helps businesses to make informed decisions and estimate performance in the short and long terms. For example, companies may use sales prediction to allocate budgets, manage the workforce, purchase equipment, and control cash flow.

What is a sales forecast?

A sales forecast estimates how much your company plans to sell within a certain time period (like quarter or year). The best sales forecasts do this with a high degree of accuracy. Sales forecasts differ in where they’re getting their inputs – for example, they may rely on sales reps’ intuition or even artificial intelligence (AI).

What is a sales projection?

A sales projection is a document in which you estimate future sales figures over a specific period. You can create them for various theoretical scenarios to better plan your actions. For example, you could predict that you will sell 1,000 packages in 2022, compared to the 800 from last year, since you’ve hired an additional sales team.

Do sales forecasts live up to their promise?

[Gorodenkoff/AdobeStock] A sales leader shares his secrets for creating forecasts that live up to their promise. Don’t plan for “when” or “how much” until you read these tips. In my 20-plus years as a sales leader, my goal has always been to create forecasts that are so accurate they astound the C-suite.