The most common way to forecast sales is using the Time Series Analysis which is actually prepared on the basis of past sales. By utilizing a time series analysis the business leader is able to keep his sales teams more efficient by helping in :
• Smoothing out the erratic factors (e.g. by using a moving average)
• Adjust for seasonal variation
• Identify and estimate the effect of specific marketing responses
A Time series analysis covers four components which I have observed in majority of the scenarios that I have encountered:
• Smoothing out the erratic factors (e.g. by using a moving average)
• Adjust for seasonal variation
• Identify and estimate the effect of specific marketing responses
A Time series analysis covers four components which I have observed in majority of the scenarios that I have encountered:
- Trending factors: This pertains to the basic judgment of the sales are going up, down or just flattening.
- Seasonal or cyclical factors : I have noticed that most sales are affected by swings in general economic activity or seasons (e.g. : Majority of the B2B sales go down during the End of year in the western markets due to the holidays) Usually such seasonal and cyclical factors occur in a regular pattern.
- Change in Marketing Strategy : This component could be taken into consideration as something that includes the results of particular measures that have been taken to increase sales
- Unexpected Events: This could include various disturbances like the start of the recession, or industry collapse, they can be easily identified by isolating from the past data , so as to help in projecting a more accurate sales forecast
If you want some perspective on how you or your company needs to enhance their Sales/Client Management Capabilities, please email me at shubhanjan.saha@gmail.com
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