The importance of sales forecasting in SME business
SMEs are an integral part of any nation’s growth engine. They contribute around 6.11% of the manufacturing GDP, 24.63% of Service sector GDP and 45% of the total Indian manufacturing output. However, they are continuously dealing with multiple challenges, access to finance is one of the major ones. An SME therefore has to be extra diligent with regards to available cash flows. Often, SMEs tend to build up a huge inventory in expectation of future demand, only to end up in increased stock level, thereby blocking cash-flows.
Accurate Sales forecasting is a feature that can help you perform better and improve your financial planning decisions, as it is is directly proportional to your sales growth. This growth further leads to increased company revenue. Research from the Gartner Group found that improved forecasting led to tangible achievements, such as a 15% reduction in inventory and a 2% increase in revenue. For SMEs resources are always limited and hence cash flow is the king. Therefore, any improvement in sales forecasting becomes a significant boon to the company.
What is Sales Forecasting?
Sales forecasting is an estimation that gives you the big picture of what your business’s sales is going to be in the future. Depending on your business strategy, this forecast can be estimated monthly, quarterly, half-yearly or annually.
Why is accurate sales forecasting important?
According to a research, companies with accurate sales forecasts are 10% more likely to grow their revenue year-over-year and 7.3% more likely to hit quota. This definitely justifies, the importance of accurate sales forecast for higher profits. If you want to be a prosperous company, choose forecasting tools that are reliable and effective and can help identify rooms for improvement. Sales Forecasting plays a crucial role in multiple functions of your sales operations – resource allocation, cost of sales, sales strategy, and supply chain management. All these elements are directly linked to the ROI for your company. If forecasts are not done correctly, they can have heavy consequences on your business. An ideal CRM software uses a centralised database which allows different departments to communicate with each other seamlessly, without having to maintain data at multiple locations. All the applications of CRM including Sales Forecasting module are interwoven and can talk to each other. With this integration and real-time information an organization can make sound decisions.
How Deskera CRM app encourages accurate sales forecast?
Deskera provides cloud-based CRM app, access to which is not limited to on-premise system. This app can be logged in from any mobile device- a smartphone, tablet or a laptop.With the help of Deskera CRM Sales Forecasting and Reports you gain insights into customer preferences and demand patterns based on historical sales reports. Additionally, you can also determine the lead conversion ratio and boost your sales and business. You can get a single window view of key accounts, leads by status, leads by source, and more. Custom reports for better reporting and decision making can be generated in Deskera CRM Sales Forecasting and Reports. By providing real-time information, the software also helps streamline the entire sales process and take better business decisions. With its accurate future forecast of the supply chain inventory, cost of sales, sales strategy etc. it can help an organization increase its profitability.
Some of the features of Deskera CRM Sales Forecasting and Reports are as below:
Standard Reports: You can select the module and drag and drop it on the fields that you want, and you will get an immediate real-time view, with instant drill-down to the data you need.
Intuitive Graphs: You can determine the lead conversion ratio and up-to-date business statistics through intuitive graphs and tables. Intuitive graphs are easily understood and are the perfect means to represent data.
Export Reports: Export CRM reports come in multiple file formats like .pdf, .csv and more. You can export data from individual modules or make a backup of all your CRM data.
As a market player facing strong competition on the outside, it is imperative to know your prospects and customers closely. CRM can give you an understanding of who is buying your product, places where it is being purchased and why is it being purchased. Sales Forecasting feature can cull out these patterns and reports which can help you reach out to the right audience. Thus, leading to more sales, more time and energy investment in productive tasks and last but not the least, increased profitability.