Sales organizations of all sizes are under pressure from CEOs to provide more accurate top line sales forecasts. Better forecasts mean a more accurate prediction of the future revenue health of the company. To help improve the accuracy of sales pipelines, best-in-class companies are using sales analytics solutions which rely on multiple data streams - not just a single source.

In May and June 2012 the Aberdeen Group interviewed 144 end-user organizations about their sales effectiveness practices and accomplishments. The report entitled "Better Sales Forecasting Through Process and Technology" shows that firms that have invested in enabling technologies are significantly outperforming their competition. Consider the following enabling technologies and the impact they have had on sales forecasting results.

Enabling Technologies

• Sales analytics or forecasting software
• Different sales forecast dashboards for each sales role
• Lead scoring/assignment based on patterns of profitability, purchase, or payment trends
• Predictive analytics
• CRM/SFA dashboard integrated with goal vs. actual sales forecast data
• Sales stage analysis that identifies problem deals by deal velocity

Best in class companies that have enabling technologies and formal definitions of sales stages, standard rankings to define sales opportunities, and a centralized repository of sales data identified by sales stage, have the best chance of producing highly accurate forecasts.

Consider some of the metrics as reported by Aberdeen.

Forecasting process and enabling technologies can make your sales forecast 'rifle shot' accurate and provide your executive team the confidence they need to make critical business decisions. Take the time to review your current forecast methodologies and look for areas that have gaps or don't properly connect. It is also sensible to make changes in phases rather than in mass. Good luck and good forecasting!