The technique to increase sales forecast automation accuracy is the path of better growth and revenue generation for your organization. You must learn to improve the accuracy of sales forecasting through automation.
Let us go through a few ways to increase the sales forecast automation accuracy. But before that, you should also be aware of the issues that we generally face.
Also see the importance of sales forecast automation from our blogs:
https://digitalwoods.net/en/blog/importance-of-sales-forecast-automationUsually, we see that 75% of companies create their sales forecasting reports manually like maintaining them in spreadsheets. They assemble the data after tracking and evaluating it and make the possible estimated changes in the spreadsheet. There are a few problems that come up when they do this:
1. Invalid data
Even when the data is assembled in the spreadsheet, nobody can ensure that the data is accurate. Research says that 80% of data in the spreadsheet is incorrect which gives rise to a lot of issues like the sales reps are not paid correctly. Also, the budgets and expenses for the company are not accurate.
2. Non-systematic process
The administration and finance team of your organization spends extra time retrieving data from the spreadsheet and correcting the calculated commissions, expenses, and revenue. It increases the overall time of payout.
3. Irregular sales planning and forecasting
Your sales and finance team are collecting data from multiple sources, this will lead to data inconsistency. The overall planning and forecasting will be irregular from the beginning and you will not be able to spot the errors and miscalculations in the spreadsheet.
Now let us move on to the ways how to increase the sales forecast automation accuracy:
You can maintain the forecasting accuracy and achieve the goals by using a platform that is sales performance management(SPM). It is a platform that allows companies to make use of their data more productively. To generate better sales plans and enhance the accuracy of forecasting.
The SPM solutions can help you solve the most common issues faced by the companies.
- They can ensure 99% of data to be accurate and the commissions to be right.
- They also lessen the time taken for data entry and extraction of data up to 70%
- Recognize the problems beforehand and take preventative measures.
Applying an SPM solution is an easier process that involves two steps.
Firstly, collect the data from various sources and assemble them into a single so that every employee in the organization can check it out.
Next, you have to automate the process with the centralized data that you possess. You can start the process by the incentive compensation management which automates the compensation payment and later you can include other management processes.
What does the SPM solution do?
- SPM handles the data extraordinarily in a single source of truth. Everyone in the organization can access the data regardless of their own way. You can also range up the data to plan, adjust, and forecast collectively as it is on the same page.
- The organization’s sales planning and forecasting are based on the compensation and performance of the data. The process should be effective and flawless so that the sales plan and forecasting are in order which is necessary for a successful business.
SPM removes the longer manual planning in spreadsheets allowing you to use the data effectively for forecasting. The SPM platforms further help you to extract data from the centralized one and design models, sales territories, calculate commissions, evaluate and enhance the complete process automatically, making the sales forecasting more accurate.
How to manage sales forecast report? Go to the HubSpot link to know more:
https://www.hubspot.com/products/sales/sales-reports
How is the sales forecasting automation beneficial?
Mutual accomplishment for both sales and finance
A successful company always aligns its sales with the finance and SPM platforms help to bridge the gap between the sales and finance teams. The SPM tools allow the leader of sales and finance to gain clear visibility of data and access the data in real-time.
Moreover, the visibility in performance and pipeline data gives more insight to spot out the relevant prospects before. They make a powerful sales pipeline and sales and revenue are estimated well and as both the sales and finance are on the same page they are understood better by the organization. The SPM directly feeds data into the system reducing the time.
As mentioned above, you can access real-time data which enables the finance team to monitor and calculate the performance and dynamically adjust the compensation and forecasting. This makes it easier to benefit both teams.
Greater goal achievement
To make sure the sales forecasting is accurate, the finance team requires correct information. In case, the revenue is over or underestimated, then the company will miss reaching its ultimate goals. But, SPM comes to the rescue. It helps in collecting data systematically.
The compensation involves various pay, one cannot estimate the exact amount required for the organization. You get a clear picture of the compensation through the immediate insights.
The leader along with the team can be assured that the forecast is accurate which can lessen the risks and enhance the decision-making ability.
