Create an environment of discipline and accuracy.

Below is an illustration of the Forecast Accuracy Template; our way to help sales leaders gain confidence through data to nail their forecast.

(Click here to download the Forecast Accuracy Template)

You’ll see that the team closed $2.2M in Jan, $1.9M in Feb, $2.4M in Mar, and $1.9M in Apr.  The monthly conversion rate % values simply represent a month’s bookings divided by the total pipeline amount at the beginning of the month.  For example, you’ll see that Dan Crushit had $925k in his pipeline at the beginning of Jan that had project close dates within the month of Jan.  Of this $925k, he closed $565k in Jan.  His pipeline conversion rate was a super impressive 61%.  On the other hand, Jane Jackpot only closed 25% of her Jan total pipeline in Jan.

The team as a whole has closed 42% of its pipeline in the respective forecasted months.  The process works best when using a bottoms-up approach though.  That being said, the prediction for May should add the predictions for each of the 9 sales reps.  Donnie Dollars has the highest conversion rate (56%), and when multiplying his $462k May pipeline amount by his 56% YTD conversion rate, we can project him to close $258k in May.  And when using this same approach for the 8 other reps, we can project a bookings amount of $1.9M in May based on a total pipeline amount of almost $4.5M.

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