Post by tonima5 on Jan 18, 2024 15:20:43 GMT 5
There are several main reasons why it is very useful to pre-calculate a sales forecast: To set the right goals. Goals are a certain amount that the company plans to receive in a month, quarter or year. It is from this figure that the head of the sales department can start when setting KPIs for managers. To reduce costs. Forecasting makes it possible to better and more comprehensively optimize the budget for production and logistics processes. For planning. Understanding the level of future income allows you to objectively and correctly plan subsequent purchases and hiring of personnel, launch advertising, rent warehouses and take other actions that require investment. For effective management of warehouse balances. The sales forecast protects the company from excess or shortage of goods in warehouses, and helps to avoid downtime or work overload.
To predict a decline in purchasing activity. It is possible Email Marketing List to predict a drop in demand for goods and services under the influence of various objective factors. For example, seasonality. And this is only a small part of the goals and reasons why analysis and forecasting of sales dynamics is so important for business. The more seriously and comprehensively you approach this issue, the more effective and profitable your business activities can become. how to forecast sales Differences between sales planning and forecasting There is often confusion between these concepts. But these are actually different things: Sales forecasting is largely just a hypothesis. In fact, we are talking about assumptions based on sales analysis data, market conditions and other factors. However, forecasting is an integral part of planning. Therefore, it is definitely not worth abandoning it; Sales planning is a very specific and measurable goal, which is based on forecasting and indicators of previous periods.
In most cases, this task is set by the head of the sales department or commercial director. At the same time, it is very important that all the necessary resources are available to carry it out. That is, these terms are closely related to each other, and one follows from the other. But you should not confuse them or combine them into a single whole. How to forecast sales volume Now let's move on to the more practical part of our article. There are different methods and models for forecasting sales. They are usually divided into two main categories - subjective and objective. Subjective forecasting methods User Expectations This method is less about how to forecast sales volume and more about how to explore the readiness of a potential target audience to purchase your product or service. The logic is quite clear. If a potential buyer shows interest in the product, then active sales can be predicted. But! Remember that there is a gap between the desire to buy and the purchase. Many people want to buy the latest iPhone model, watch Apple presentations, read articles, and study product cards in online stores. But they don't make purchases.
To predict a decline in purchasing activity. It is possible Email Marketing List to predict a drop in demand for goods and services under the influence of various objective factors. For example, seasonality. And this is only a small part of the goals and reasons why analysis and forecasting of sales dynamics is so important for business. The more seriously and comprehensively you approach this issue, the more effective and profitable your business activities can become. how to forecast sales Differences between sales planning and forecasting There is often confusion between these concepts. But these are actually different things: Sales forecasting is largely just a hypothesis. In fact, we are talking about assumptions based on sales analysis data, market conditions and other factors. However, forecasting is an integral part of planning. Therefore, it is definitely not worth abandoning it; Sales planning is a very specific and measurable goal, which is based on forecasting and indicators of previous periods.
In most cases, this task is set by the head of the sales department or commercial director. At the same time, it is very important that all the necessary resources are available to carry it out. That is, these terms are closely related to each other, and one follows from the other. But you should not confuse them or combine them into a single whole. How to forecast sales volume Now let's move on to the more practical part of our article. There are different methods and models for forecasting sales. They are usually divided into two main categories - subjective and objective. Subjective forecasting methods User Expectations This method is less about how to forecast sales volume and more about how to explore the readiness of a potential target audience to purchase your product or service. The logic is quite clear. If a potential buyer shows interest in the product, then active sales can be predicted. But! Remember that there is a gap between the desire to buy and the purchase. Many people want to buy the latest iPhone model, watch Apple presentations, read articles, and study product cards in online stores. But they don't make purchases.