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AI Sales
10 Best Sales Forecasting Software
Christina Miranda
April 24, 2024
|
7 min. read
Christina Miranda
LAST UPDATED
April 24, 2024
READING TIME
7 min.
What is sales forecasting?
Sales forecasting is a process where you predict your sales performance.
In order to make these predictions, you look into past indicators such as historical data, and market trends, among other relevant factors.
By analyzing past sales data, market conditions, customer behavior, and other internal and external factors you can estimate future sales volumes, revenues, and trends.
Sales forecasting aims to provide businesses with valuable insights into their future sales performance, enabling them to make informed decisions about resource allocation, budgeting, inventory management, and strategic planning.
Sales forecasting can be performed using various methods, including qualitative methods (such as expert opinion and market research), quantitative methods (such as time series analysis and regression analysis), and multivariable analysis forecasting.
Why is it important?
Implementing a good sales forecasting strategy in your business is a wise move not just because you’re curious to know how you’re doing and how successful you’ll be!
Sure, it’s a great self-confidence boost, but employing sales forecasting will help you decide accurately what your next moves should be so you don’t have to take a leap of faith.
With sales forecasting, you’re able to:
Devise strategic planning
Forecasting helps you set realistic goals and develop strategies to achieve them.
It provides a roadmap for future growth and guides resource allocation, such as budgeting, staffing, and production planning.
Allocate your resources efficiently
This includes determining inventory levels, staffing requirements, marketing budgets, and investment decisions.
Manage your business’s finances
Accurate sales forecasts help businesses manage cash flow, set revenue targets, and make informed financial decisions.
Evaluate your performance and adjust
By comparing actual sales results to forecasted figures, you can identify areas of strength and weakness, measure progress toward goals, and make adjustments as needed.
You’ll be able to pinpoint areas in the business that aren’t performing as they should and that could therefore affect the entire sales funnel.
Develop risk management
Forecasting allows businesses to anticipate potential risks and challenges, such as market fluctuations, competitive threats, and economic downturns.
This enables proactive risk management strategies to mitigate negative impacts on the business.
Sales aren’t linear. With a proper analysis of market fluctuations, you will be able to determine what sales strategies are more appropriate, and what techniques you should use at any given time.
Increase your investor’s confidence in the brand
For publicly traded companies or those seeking investment, accurate sales forecasts are essential for building investor confidence.
Investors rely on forecasts to assess the company's growth potential and make investment decisions.
Sales Forecasting Method
The choice of forecasting method depends on factors such as the availability of data, the complexity of the market, and the level of accuracy required.
Pros and cons table
It is also possible to combine both methods to obtain a more accurate forecast. Companies can use quantitative methods to establish a baseline forecast and then use qualitative methods to adjust it based on external factors.
Quantitative Forecasting Method
Quantitative sales forecasting is based on tangible facts and numbers.
By offering data-driven predictions, quantitative forecasting is more reliable than other methods. It is based on historical data and mathematical analysis of trends and patterns in the industry.
Quantitative forecasting methods take into account trends, seasonality, cyclical patterns, statistics, and other historical data that could have an impact (positive or negative) on sales. However, this approach does not consider external factors such as consumer behavior.
If you have a large company, with a large trajectory behind you, it makes good sense to analysis all that data regularly to make accurate predictions, instead of just guessing.
Qualitative Forecasting Method
On the other hand, qualitative forecasting is based on subjective and expert opinions and non-measurable data.
Qualitative forecasting techniques are valuable when historical data is scarce or unreliable, when there are significant uncertainties or changes in the market environment, or when making long-term strategic decisions.
Qualitative forecasting is particularly useful when your business is fairly new and you still don’t have a large data log to rely on. Alternatively, with qualitative forecasting, you can include external factors in your analysis and predictions.
For example, the Superbowl is close, so you can reference and adjust your strategies around such events.
However, the major downside to qualitative forecasting is that they are inherently subjective and may be prone to biases, so it's essential to validate the forecasts with objective data whenever possible and to consider using a combination of qualitative and quantitative methods for more robust predictions.
Multivariable Analysis Forecasting
Multivariable analysis forecasting is a method used to predict future outcomes by considering multiple variables simultaneously.
Unlike univariate forecasting, which relies on a single variable, multivariable analysis takes into account the interrelationships and dependencies between multiple factors that may influence the forecasted outcome.
How does multivariable analysis forecasting work:
Identify relevant variables:
The first step is to identify the variables or factors that may affect the outcome being forecasted. These variables can include both independent variables (factors that influence the outcome) and dependent variables (the outcome being predicted).
⬇️
Collect your data
Next, historical data is collected for each of the identified variables over a relevant time period.
This data may include quantitative data such as sales figures, market trends, demographic information, and economic indicators.
⬇️
Analyze the data you’ve collected
The collected data is then analyzed to identify patterns, trends, and relationships between the variables.
This may involve techniques such as correlation analysis, regression analysis, and time series analysis to quantify the relationships between variables and assess their impact on the forecasted outcome.
⬇️
Develop a statistical model
Based on the analysis, a statistical model is developed to represent the relationships between the variables and predict the future outcome.
This model may be linear or nonlinear, depending on the nature of the data and the relationships between variables.
⬇️
Start your forecasts!
Once the model is developed and validated, it is used to generate forecasts for the future outcome based on the values of the independent variables.
These forecasts may be generated for short-term or long-term time horizons, depending on the forecasting needs.
⬇️
Validate and adjust accordingly
The forecasts generated by the model are validated against actual outcomes to assess their accuracy and reliability.
If necessary, the model may be adjusted or refined based on the validation results to improve its predictive performance.
Sales Forecasting Software
As with most steps in the sales funnel, there is software available to help you make this process quicker and much more accurate.
So, let’s go ahead and look into 12 of the best sales forecasting software out there:
Anaplan is a transformative way to see, plan, and run your business.
Using its proprietary Hyperblock™ technology, Anaplan lets you contextualize real-time performance, and forecast future outcomes for faster, confident decisions.
On its own, Anaplan is fairly accurate, but if your business needs more accurate forecasts, consider adding Anaplan PlanIQ™, as it proves to be much more effective and accurate.
Anaplan integrates seamlessly with multiple cloud systems, such as AWS S3, Google BigQuery, and Microsoft Azure Blob, and leverages capabilities from industry-leading third-party systems with the CloudWorks framework.
Although users have mentioned, “This software doesn't go well with the high integration functions and doesn't offer a wide range of event workflows”.
Anaplan prides itself on its user experience, they also offer a demo with a short video describing how the product works. Users have stated UX is great, mentioning it is very native and user-friendly. Although some have commented there is space for improvement in UX to improve usability.
Pricing
Free trial ✅
Anaplan does not disclose its pricing models, therefore it is only available under request. We do know they offer three different plans: Basic, Professional and Enterprise.
✅ Pros
Intuitive user Interface
Offers a history feature where you can view any change to a specific cell
❌ Cons
Dashboard functionality is not as flexible as Excel
Pipedrive offers sales forecasting features that allow businesses to predict future sales performance based on historical data and current pipeline information
With Pipedrive's sales forecasting functionality, users can:
Track Sales Pipeline
Generate Forecasts
Customize Forecasting
Monitor Performance
Generate Reports
Forecasting is based on deal progression, therefore it has a high accuracy level.
Pipedrive offers over 400 integrations, including Zendesk, PandaDoc, MailChimp, and many mor. Users generally appreciate the simplicity of their integrations.
Unfortunately, users have mentioned that the UX is not very user-friendly, especially for those who are new to the software. Dashboards aren’t structured well and there are too many added features
Pricing
Sales forecasting is included in plans Advanced and over.
✅ Pros
Affordable pricing
Good analytics and reports are used for forecasting pipe and deals
❌ Cons
UX could be improved
The inability to move among contacts in the same list
Clari is a sales forecasting software that uses AI and automation to help sales teams predict and manage their pipeline more effectively.
It offers features such as:
Pipeline Visibility
Predictive Analytics
Deal Insights
Forecast Accuracy
Collaboration Tools
Clari aims to streamline the sales foecasting process, improve forecast accuracy, and enable sales teams to make better-informed decisions.
Thanks to features such as their Sales trend analysis, statistical analysis, and reporting and analytics, Clari offers clear and accurate predictions.
Clari is partnered with 41 different apps and can integrate with software such as Salesforce, Salesloft, Google Workspace, among others. Users state that integrations are pretty solid and helpful, but there is room for improvement.
Clari offers user-friendly features and provides visibility into sales forecasts. With strong graphics and template options, Clari offers easy reporting and communication
Pricing
Clari offers 2 pricing models: Accelerator and Enterprise, although there is quite a large gap between both pricing models ($1.080 per year and $1.320 per year), the Accelerator plan offers most of the Enterprise features.
✅ Pros
Edits several fields for separate opportunities from Salesforce
Revenue operations don't need to use an Excel spreadsheet
❌ Cons
Not always intuitive to click through
Functionality limitations such as drill-down and view replies
4. ForecastX
Rating ⭐⭐⭐⭐
G2 4.5/5 (1 reviews) | Capterra 4.4/5 (7 reviews)
Overvie
ForecastX is a sales forecasting software that offers advanced forecasting capabilities to help businesses predict future sales and demand more accurately.
Some of ForecastX’s features include:
Performance metrics
Built-in algorithms
Exception analysis
Correlation analysis
Modeling and simulation
Among many others!
ForecastX integrates with Excel to create instant reports.
By using PROCAST, ForecastX ensures accurate statistical forecasts. Users claim to have achieved a 95% accuracy thanks to ForecastX.
Pricing
Free trial ❌
Although ForecastX does not offer a free trial or plan, it does offer a free demo which is available upon request.
Capsule CRM is a customer relationship management software that offers features for managing contacts, sales pipelines, and tasks.
While Capsule CRM provides robust tools for managing customer relationships and sales processes, it doesn't have dedicated functionality specifically for sales forecasting like some other CRM platforms.
However, you can still use Capsule CRM for basic sales forecasting by leveraging its reporting and analytics features.
Users have commented that they enjoy it’s easy interface.
As this is CRM software, accuracy is dependent on your reports rather than the actual software.
Users applaud integration with GMail and FreeAgent. Simple and seamless integration
Pricing
Free trial ✅
Four payment plans to choose from, ranging from €15 to €68.
By merging human expertise with AI, Aviso offers great results.
The core strengths of the Aviso AI Platform include:
AI-Guided Deal Forecasting
Pipeline & Deal Management
Relationship & Activity Intelligence
Conversational Intelligence
Coaching & Enablement
NLP Analytics & Reporting
Go-To-Market (GTM) Collaboration
Sales Engagement
Lead Intelligence
Customer Success Intelligence
Aviso's platform integrates dat from its databases, CRM systems, and external sources, processed through an advanced AI/ML layer.
Overall, users claim that the UI is very clean, simple, and easy to navigate.
Aviso offers high forecast accuracy and insights. Users mention that the platform's forecasting capabilities stand out, offering more than just numbers.
Aviso AI offers integrations with a wide variety of platforms, including Salesforce, Zoho CRM, Zoom, HubSpot and many more.
Pricing
Aviso offers a free demo of the product, so you can make an informed decision before choosing between one of their 2 payment plans, although pricing is under request.
✅ Pros
Ability to create 360 profiles or scores to highlight interactions or risks in deals
Salesforce Sales Cloud offers robust forecasting capabilities to help businesses predict future sales performance and make informed decisions.
Some of the key features and benefits of Sales Cloud forecasting include:
Customizable Forecasting Models
Collaborative Forecasting
Visibility and Transparency
Predictive Analytics
Integration with CRM Data
Mobile Accessibility
Thanks to their use of AI with Einstein Analytics, Salesforce Sales Cloud offers predictive and accurate analysis and intelligent recommendations.
Sales Cloud forecasting integrates seamlessly with Salesforce CRM data, including opportunities, accounts, contacts, and activities. This allows for a holistic view of the sales pipeline and enables more accurate forecasting based on real-time data updates.
However, smooth integrations required technical expertise.
Although Salesforce Sales Cloud does have a high learning curve due to all the customizable aspects, users claim implementation is easy thanks to the usage guides
Pricing
Free trial and demo ✅
Salesforce offers 5 payment plans starting at €25 with the Starter Suite plan, although Predictive AI does not appear until the Unlimited plan, starting at €330.
It’s also important to bear in mind that Salesforce charges extra for most of their add-ons, making it a fairly expensive product.
Insightly is a CRM platform that offers sales forecasting features to help businesses predict future sales performance and make informed decisions.
Among Insightly’s sales forecasting capabilities, we find:
Pipeline Management
Forecasting Models
Data Analysis
Forecast Collaboration
Integration with CRM Data
Reporting and Analytics
Mobile Accessibility
Insightly provides a framework and tools for sales forecasting, but its accuracy ultimately depends on the quality of data, user input, chosen forecasting methods, and external market factors.
Insightly is very user-friendly and completely customizable.
By getting an AppConnect plan, you’re able to integrate Insightly seamlessly with a wide variety of apps.
Pricing
Free plan ✅
Insightly’s pricing is divided not only in 3 plans, but also 5 different tiers to fit your specific needs, or combining all tiers in a near “All-in-One”, starting at $349.
NetSuite is a cloud-based ERP (Enterprise Resource Planning) software, that offers robust sales forecasting functionality as part of its CRM and ERP suite.
Among NetSuite's sales forecasting capabilities, we find:
Customizable Forecasting Models
Integrated CRM and ERP Data
Demand Planning
Collaborative Forecasting
Advanced Analytics
Scenario Planning and "what-if" analysis
Mobile Accessibility
Users state that NetSiute is very user-friendly, although autosaving is not an option.
Some users have claimes that NetSuite’s forecasting is not the most accurate, due to inaccuracy in reporting.
Pricing
NetSuite does not disclose its pricing plans at this time.
✅ Pros
Unified platform
Workflows are easy to setup
❌ Cons
Said to be expensive
Lacks a training process
FAQs
1. What factor affect foreasting?
Forecasting can be affected by both internal and external factors.
Internal factors: sales history, product mix, marketing strategy, and sales team.
External factors: overall economy, industry trends, and competitor activity.
2. How do you calculate sales forecast?
You multiply last month’s revenue by your expected growth, and subtract your expected churn:
($150,000 * 1.12) – ($150,000 * .01) = $166,500
3. What are the common types of sales forecasting?
The straight-line method, using moving averages, simple linear regression, and multiple linear regression
4. What is the most accurate sales forecasting method?
Multivariable Analysis Forecasting. Incorporating various factors from other forecasting techniques like sales cycle length, individual rep performance, and opportunity stage probability, Multivariable Analysis is the most sophisticated and accurate forecasting method.
5. What is the difference between budgeting and forecasting?
Budgeting is about setting financial targets and allocating resources, while forecasting is about predicting future outcomes and making informed decisions based on those predictions.
Christina Miranda
Content creator and translator @ lempire
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