Forecast

Process

A prediction of revenue that will close in a given period, based on pipeline analysis and rep input.


Forecast

Forecast is a prediction of revenue that will close in a given period. It's one of the most important outputs of RevOps -- the business depends on accurate forecasts for planning, hiring, and investor reporting. Forecasting combines data (pipeline, historical conversion) with judgment (rep and manager input).

Forecast Categories

| Category | Definition | Probability |

|----------|-----------|-------------|

| Commit | Rep is confident it will close | 90%+ |

| Best Case | Strong chance but not certain | 60-80% |

| Pipeline | In active sales process | 30-50% |

| Upside | Possible but unlikely this period | 10-25% |

Forecasting Methods

Bottom-up (rep-based):

  • Each rep forecasts their deals
  • Manager rolls up and adjusts
  • VP applies judgment layer

Top-down (historical):

  • Look at historical conversion rates
  • Apply to current pipeline
  • Adjust for known factors

Weighted pipeline:

  • Pipeline value × stage probability
  • Sum across all deals

AI/ML-based:

  • Models predict based on deal attributes
  • Remove human bias
  • Requires good historical data

Forecast Accuracy

Forecast accuracy = Actual / Forecast × 100

Benchmarks: