You know the old saying, “Failing to plan is planning to fail.” In sales, one of the best ways to plan ahead is to invest in sales forecasting software. That way, you get an accurate view of future sales performance and can act accordingly. The question is, which sales forecasting software is right for your company?
Keep reading to learn what sales forecasting software is, why it’s a valuable tool, and the seven best sales forecasting options available.
Sales forecasting software aims to answer three distinct questions:
How much revenue can we expect to generate in the future?
How do our actual sales compare to revenue projections?
Which lead types have the greatest impact on our forecasts?
Once you’ve asked these questions for your business, you’ll know which sales activities to focus on, which prospects are worth pursuing, whether to adjust your team’s quota, and how to boost your sales and grow your company.
What are the different types of sales forecasting?
Sales managers can apply different techniques when forecasting sales based on the information they need and value most. While there are several techniques one could employ, the primary forecasting methods are:
Qualitative sales forecasting: Based on non-tangible characteristics, qualitative forecasting relies on expert opinion, judgment, and insight to predict potential future sales and revenue.
Quantitative sales forecasting: This method focuses purely on the data, using historical revenue, sales figures, and trends to predict upcoming revenue outcomes.
Why is sales forecasting important?
Sales forecasting helps businesses to make data-driven decisions, plan for the future, and optimize their sales processes.
Sales forecasting provides benefits in various areas, including:
Informing growth strategies: Sales forecasting provides data about what to expect in terms of sales and which strategies can help you get there. It enables you to plan for the future and informs strategies for sales, marketing, and your overall business performance.
Budgeting and resource allocation: Forecasting helps you predict how much revenue to expect in the future and where you may need additional resources to meet demand. Sales forecasting data informs budgets, hiring, inventory management, and other activities supporting the sales pipeline.
Evaluating performance: Sales forecasting also assists in selecting benchmarks to aim for to ensure you’re on target to hit your goals and adjust as needed.
To realize these benefits, you must select a quality sales forecasting tool that works for your business.
What is the best sales forecasting software?
When it comes to sales forecasting software, you have options. The key is finding the right one for your company, which will require some research. Lucky for you, we’ve already done the heavy lifting. Take a look at our seven picks for the best sales forecasting software:
Nutshell is an all-in-one sales and marketing platform that helps B2B teams close more deals by taking time-wasting tasks off their plate and helping them capture their best opportunities.
Available in the Nutshell Pro package, Nutshell’s forecast report allows you to segment your forecasts by product, pipeline stage, and more, all within the specific date ranges that matter to you.
Users also appreciate Nutshell’s pricing transparency. Nutshell Pro costs $49/user/month when billed monthly and $42/user/month when billed annually, and all Nutshell subscriptions include unlimited contact and data storage as well as access to their friendly, Michigan-based support team.
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According to InsightSquared, “Sales is complicated enough, forecasting should not be.”
We couldn’t agree more, which is why InsightSquared leads our list of top sales forecasting software. If you invest in this tool, you’ll get access to advanced artificial intelligence that will help you streamline the forecasting process and achieve more accurate results.
InsightSquare lets you create forecasts for specific regions, products, and other segments. You can then analyze those forecasts by month or quarter. InsightSquared maintains all change records, too, which helps users understand why they’ve missed their sales goals.
Fortunately, all of this sales functionality isn’t difficult to use. InsightSquared doesn’t require any coding and comes with 350+ out-of-the-box reports so that sales managers can get up and running with the sales forecasting software in a flash.
Pricing isn’t listed on the InsightSquared website. To learn how much this forecasting solution will cost you, contact the InsightSquared sales team.
3. Anaplan
Anaplan is a flexible sales forecasting software that will help you make decisions faster and more confidently, thanks to its impressive feature set.
With Anaplan, sales managers can forecast sales by account, territory, or product line, which makes it a flexible tool that can support many different workflows. Anaplan also has a “Predictive Insights” feature that helps users identify their best opportunities so that they can allocate the appropriate amount of resources to each one and increase revenue.
Similar to InsightSquared, Anaplan does not post prices on its website. To learn about the cost of this sales forecasting software, you’ll need to contact Anaplan directly.
4. SPOTIO
SPOTIO is the sales engagement platform that was specifically made for field sellers.
With it, outside sales teams can generate leads, assign and manage territories, design efficient routes, stay in touch with prospects and customers, automate tasks, and run customized reports.
SPOTIO’s “My Reports” feature enables field sellers to build reports based on the data most relevant to them. You can easily track sales activities, pipeline metrics, and revenue data for specific reps and/or territories, then use this information to predict your future sales.
SPOTIO offers four different plans, each with its own set of features and capabilities. The SPOTIO website doesn’t clarify what each plan costs, however.
5. Gong
With Gong, you can get “total visibility into your pipeline and use AI to forecast with superhuman accuracy.” It’s a bold claim—does it hold up?
We’re not sure how to quantify “superhuman accuracy.” What we do know is that Gong is a solid sales forecasting software that will definitely help you predict future sales performance. It does this via reliable AI features that help users get more done in less time.
Basically, Gong pulls data from your team’s calls and emails and then runs the details through its AI algorithms to pinpoint trends. Gong then uses the trends information to forecast sales and make recommendations for your team to generate more revenue.
So, how much does Gong cost? Well, that depends.
Gong creates custom pricing proposals for each of their customers. Your best bet is to sign up for a free product demo, tell the sales team about your needs, and let them give you a price.
6. HubSpot
HubSpot is a world-renowned marketing, sales, and customer service platform.
In terms of sales forecasting features, HubSpot has the tools sellers need to accurately predict future sales performance. For example, HubSpot includes a “Categories” feature that allows users to group sales together. According to HubSpot, this helps sales teams adjust their forecasts in real time, based on the knowledge available to them, without losing track of their current place in their pipelines.
HubSpot’s Sales Hub is available at four different price points. As you would expect, the more you spend, the more features you get access to. Unfortunately, HubSpot’s forecasting tools are only available via the Professional and Enterprise plans, which cost $450 to $1,200 a month.
Pipedrive is a well-respected CRM tool that includes sales forecasting features.
One of the best things about Pipedrive is its highly visual nature, which helps sellers stay organized, effectively control their pipelines, and, most importantly, take action.
Pipedrive is equipped with in-depth, easy-to-understand, and customizable performance reports.
You can use these sales reports to analyze past performance and the current state of your pipeline and identify both bottlenecks and winning patterns. This level of knowledge can then be used to predict future results with greater accuracy.
Also of note, Pipedrive includes a “Subscription Revenue” report, which allows sales teams to factor recurring payments into their sales forecasts.
Pipedrive offers five different plans, though only three of them include sales forecasting features. Expect to spend between $49 and $119 per user per month if you choose Pipedrive as your sales forecasting software.
What features should I look for when evaluating sales forecasting software?
With so many sales forecasting software options, choosing the right one takes time and effort. To help you narrow it down, here are seven vital features to evaluate.
1. Long-term strategic planning capabilities
Your sales forecasts should look at more than just the short term, so look for a sales forecasting tool that enables you to plan for your business’s long-term growth and sustainability.
Look for features that allow you to create forecasts for extended periods so you can align your strategies with your business goals, ensuring that your decisions today contribute to your success in the future.
2. Accurate sales projections
The accuracy of your sales projections is crucial for effective decision-making. A high-quality forecasting tool provides accurate predictions and continuously refines them as new data becomes available, helping you confidently make informed decisions.
3. Potential sales opportunities identification
The best sales forecasting tools don’t just project existing sales—they also help you identify potential sales opportunities. This could involve segmenting your audience, identifying untapped markets, and suggesting new products or services to expand into. By uncovering these opportunities, you can proactively grow your revenue and your business.
4. Analysis of specific products or services
Different sales trends and patterns may apply to different products or services. Your sales forecasting tool should allow you to forecast sales for specific products or services in addition to your overall business.
Whether it’s identifying seasonal spikes, understanding the impact of marketing campaigns, or spotting shifts in customer preferences, this feature enables you to create strategies tailored to individual products or services.
5. Integration with data sources
Your forecasts are only as accurate as the data they’re based on, so your sales forecasting tool needs to integrate with various data sources such as your CRM, sales platform, and inventory management system. Connecting with these other tools enables your forecasting software to access real-time data, improving the accuracy of your predictions.
6. User-friendliness
While advanced capabilities are necessary, ease of use is just as essential. A user-friendly interface simplifies the process of creating and interpreting forecasts, making the tool accessible to your whole team. Look for intuitive dashboards, customizable reporting options, and clear visualizations that make understanding your forecasts a breeze.
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As your business evolves, your sales forecasting needs may change, and your forecasting software should be able to adjust to these changes. Look for a tool that allows you to customize forecasting models, adjust parameters, and add new data sources.
How do I forecast sales correctly?
There are a few things to look out for when forecasting sales to ensure you get as accurate a prediction as possible. Take heed of these factors to ensure your numbers give you a true reflection of what to expect over the coming term:
Historical trends: Evaluate sales data from the year before, looking at different aspects such as sales per rep, the sales climate over that period, your product, and your pricing. Use this information to determine an average sales revenue amount per period and use it as a foundation for your forecast.
Potential changes: Factor in any possible changes you plan to make over the next sales period and adjust your forecast accordingly. This could include changes in pricing, staff, promotions, territories, products, and more.
Market trends: Consistently tracking macro activities and trends within your industry pays dividends when it comes time for sales forecasting. Use what you’ve learned over the past year or more to predict what might happen in the market over the coming period.
Competitor behavior: Keeping tabs on your competitors is an absolute must, as it’s a key forecasting component. Consider competitor products, marketing campaigns, new companies, expansions, and more when making your predictions.
Business strategy: Quantify how your business plans for the coming sales period might affect your revenue. Whether you plan to expand, enter new markets, or launch new campaigns, you must determine how these variables might influence your forecast and factor them in.
Ready to get started with sales forecasting?
So, which of the above solutions gives you the features you need at a price you can afford? Once you’ve narrowed it down to 2-3 front-runners, sign up for free trials (if applicable) to test each app for yourself. Good luck!
Want to give Nutshell a try? As an all-in-one, user-friendly CRM, Nutshell offers sales forecasting along with everything else you need to optimize your sales process and grow your business. With Nutshell, you’ll get pipeline management, sales automation, email marketing, and much more.
