When it comes to operating retail sales at a high level in 2019, sales forecasting is critical to your business. Whether you run your business as a brick and mortar or operate strictly online, forecasting technology is a must-have if you want to keep up with your competitors in today’s age.
In the past, we have labored long and hard with sales and inventory forecasting through endless paperwork, spreadsheets, and of course, the cost of the labor to do the forecasting. More recently BI was helmed as an efficient means in which retailers can conduct sales forecasts tasks, however, that still only delivers intelligence based on business hindsight.
Today, businesses that are leading the pack have integrated smart forecasting technology allowing them to operate at with greater efficiency and speed while simultaneously cutting labor costs down dramatically.
So why is Sales Forecasting such an essential part of the retail industry today? Essentially, when done right it will deliver the following benefits for your organization.
- Improved decision-making about the future
- Reduction of sales pipeline and forecast risks
- Alignment of sales quotas and revenue expectations
- Reduction of time spent planning territory coverage and setting quota assignments
- Benchmarks that can be used to assess trends in the future
- Ability to focus on a sales team on high-revenue, high-profit sales pipeline opportunities, resulting in improved win rates
Here are three tips you can take advantage of today if you’re debating the value of new sales forecasting technology:
Leverage The Data You Have
You may think that you need to start collecting and organizing a ton of different metrics before you can really start to forecast your future sales trends effectively. Don’t worry, you don’t need to do a ton of work before getting started. You can use what you have today.
That being said, the greater the data you have, the more accurate your future sales forecasts will be, and you must weigh this against the result you need with the forecasting itself.
Clearer Data, Less Noise
When it comes to utilizing forecasting technology, you will get the best results when you have the right data. The great thing is with our solution Sales Prediction by Curve, you will be assisted in exactly what data is essential for the algorithms to provide clear forecasts.
Additionally, with frictionless sales forecasting, you don’t need to worry about the “behind the scenes” forecasting technology. The sophisticated solution was designed with retailers and sales teams in mind.
In other words, making data available to you should be the primary goal, while understanding the technology behind it shouldn’t set you or your team back.
Data Can Only Take You So Far
Having access to sales forecasts and product demand data is imperative, as described above, however, having a clear plan on how to effectively utilize your sales trends is equally important.
To effectively create a sales forecast action plan we recommend starting with the right set of questions:
- What are you going to focus on?
- What are you going to change?
- In practical terms, what steps are involved?
- What territories and targets are you going to give each salesperson or team?
Keep in mind that the main purpose of sales forecasting is to provide information that you can use to make intelligent business decisions.
For example, if your forecast indicates a 30% increase in sales of products or services you may wish to begin searching for larger business premises and/or increase additional stock on your hot items. Conversely, a forecast of excess stock or low sales can allow you to mitigate the effect by taking advance measures such as reducing expenses or reorienting your marketing efforts.
For leading retailers, sales forecasting is not only crucial to surviving, but also to thrive. Not only will it allow you to predict upcoming sales trends accurately and efficiently, but it will allow you to manage product demand.
Over the next decade, the difference between businesses that advance to the next level and those that fall behind will be greatly based upon the businesses that adopt new technology systems in their business.
You can still get an upper hand on the competition by allowing forecasting technology to push your business forward today.