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Forecasting Accuracy, Part 2

Posted in: Cloud9 by Swayne Hill on April 24, 2009

This month’s Cloud9 Expert, Scott Roose from inContact, Inc., had some insightful things to say about forecast accuracy – a topic that I discussed here in a post last week. Scott, who is Director of Business Analytics, said they recently improved forecasting accuracy by more than 60%. Cloud9 would certainly like to take all the credit for that, but if you go back and read my post on ‘Why Does My Sales Forecasting Suck?’, you’ll see that forecasting accuracy is not a math problem and can’t be solved with a magic pill.  It is a management problem that starts by applying best pipeline management practices. In the Meet The Expert Forum, Scott fielded questions after the Webinar and said this about forecasting accuracy:

Our forecast accuracy has gone from being off as much as 50% to less than 20%.  It used to be said that the sales forecast was unreliable, now our executive committee uses it every month and quarter.  Not all of this is due to Cloud9; like every other data analytics / reporting tool your forecast is only as good as your data.  If you have bad data then you have bad forecasts.  Therefore, you have to commit to a standardized process and regular rep / manager reviews to get better data.

Cloud9 helps us dramatically increase the pipeline forecast visibility which helps apply the right focus and pressure to drive accurate data.

I really couldn’t have said it better myself.

Scott is a great example of what’s happening in sales operations today.  In the same way they’ve harnessed Salesforce to improve sales team efficiencies, they’re leveraging Cloud9’s on-demand performance management solutions to improve management effectiveness. 




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