Forecasting is important for the company to understand how much revenue is expected to close at any given time.
- Multiply the number of deals at each stage by win rates at those stages, then add them all up.
- To increase accuracy, we break the rates down by ERP, AE, SQL source, confidence levels, and sales stages.
Note 1: If the individual AE closes less than 5 deals per SQL source, we are using the win rate of the team as default. A simplified example is shown in the illustration below.
Note 2: If the confidence level is “Commit”, the rate we use is 90% instead of the average win rate.
