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sales analysis and forecasting

Sales Analysis and Forecasting Engagement Helped a Swedish Food Retailer to Boost Its Quarterly Sales by 47%- a Quantzig Success Story

Food Retail Industry Overview

Owing to the rapid pace of technological advancements and the ongoing digital shift, the food retail industry is witnessing a phase of tremendous disruption. To thrive in this complex business scenario, players in the food retail industry need specific analytics tools at their disposal to keep a tab on their sales performance and cater to the dynamic shifts in consumer needs and preferences. Sales analytics solution such as sales analysis and forecasting can empower retail businesses to gain relevant insights into sales performance and profitability. Also, it can help retailers to understand in-depth the performance of their sales teams and marketing initiatives along with the effectiveness of their sales channels.

At Quantzig, we understand the need to deploy robust sales analysis and forecasting solutions to tackle the challenges that arise in today’s complex retail business landscapes. Our customizable sales analytics solutions have helped several players across industries. This success story is a classic example of our sales analytics capabilities.

Quantzig’s sales analytics experts help companies to build a unified view of sales data using a sales analytics dashboard to arrive at the right sales decision. Get in touch with them right away.

The client is a well-known packaged foods retailer having its operation spread across Stockholm and Gothenburg. The client approached Quantzig to leverage its expertise in offering advanced sales analytics solutions that would help them improve the accuracy of their sales analysis and forecasting methods. Also, the client wanted to improve the effectiveness of their marketing campaigns and optimize their store layout to boost and profitability across their business units.

Business Challenge

Problem Statement 1:

Due to the lack of a proper tracking mechanism, the client was finding it difficult to track their buying cycles. As a result, they were not able to align their marketing strategy with the sales cycles. Hence, they wanted to leverage sales analysis and forecasting solution to formulate an effective business model and monitor their sales performance.

Problem Statement 2:

The second challenge that the client faced revolved around those arising due to inaccurate data analysis techniques. Hence, they wanted to use machine learning algorithms to maximize the value of their sales data and draw useful insights from sales analytics dashboard in real-time.

Problem Statement 3:

The third challenge of the client revolved around analyzing historical sales data to identify relationships between products and customers. This roadblock prevented them from creating products and pricing models to generate new revenue.

Our portfolio of sales analytics solutions enables organizations to leverage sales data to analyze win/loss scenarios and optimize the sales cycle. Request a FREE proposal to gain in-depth insights.

Solutions Offered and Value Delivered

The client approached Quantzig to leverage its expertise in offering sales analytics solutions to help them improve the accuracy of their sales analysis and forecasting methods.

Phase 1:

The initial phase of the sales analysis and forecasting engagement revolved around a detailed analysis of the client’s sales data to help them track their sales performance in real-time.

Phase 2:

The second phase of this sales analysis and forecasting engagement involved the creation of ETL processes for the initial and incremental data loads along with a scalable BI architecture to help the client maximize their sales forecast accuracy for entire products’ lifecycle and modernize their sales processes.

Phase 3:

In the third and the final phase of the sales analysis and forecasting engagement, the sales analytics experts focused on building sales analytics dashboards that visualized predicted results and could compare present sales data with previous years’ data to offer valuable insights to the client that helped them improve their marketing strategies.

Right from sales forecasting to operational planning and sales force effectiveness, we’ve got you covered with our comprehensive portfolio of sales analytics solutions. Request a FREE demo to learn more.

Key Results:

  • Improved sales data analysis and forecasting significantly
  • Reduced the error percentage in forecast by 53%
  • Increased the quarterly sales by 47%

 

sales analysis and forecasting

3 Essential Sales Forecasting Methods That Can Accelerate Your Sales Process

Sales forecasting is one of the important processes that help businesses in better decision making and in predicting long term and short-term business performances. Sales forecasting affects several business areas such as sales operations, marketing strategies and budget allocations. But many sales leaders struggle when it comes to the implementation of effective sales techniques. Inaccurate sales forecasting fails to guide business pipeline management and has dire consequences on different levels of business operations. Overestimating sales may lead to overspend and underestimating sales might result in inefficient order management. Therefore, it is crucial for businesses to get their sales forecasting techniques correct. Here we have discussed in detail some of the essential sales forecasting methods that can help companies accelerate their sales processes.

Sales forecasting offers actionable insights into how a company should manage its workforce and cash flows. Want to know how? Get in touch with our experts right away.

Sales Forecasting Methods

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Technique #1: Opportunity forecasting

This sales forecasting method helps companies to estimate the probabilities of a deal getting close to conversion. Opportunity forecasting can help best when a company is trying to gain an objective understanding of its pipeline stages. Also, this sales forecasting method is helpful when you want to gauge your sales team performance and analyze areas where improvement is needed to move a prospect down the pipeline. To adopt this sales forecasting technique, it is important for companies to understand and analyze their sales history. Understanding the rates of success at every stage of the sales cycle is required to derive an accurate estimate of future results.

Technique #2: Length of the sales cycle

This approach of sales forecasting helps to make assessments based on the age of the deal rather than analyzing success rates at every stage It is very helpful in predicting when a deal is likely to close. Companies can use this technique to learn in detail about different types of deals in their sales pipeline. The length of the sales cycle is not strictly tied to defined categories. So, it can help in creating algorithms based on different types of deals efficiently. Additionally, it can help to estimate numbers for the average repeat customers or leads.

Our sales analytics solutions help companies identify new opportunities for revenue generation and improve sales forecast. Request a FREE proposal to know more.

Technique #3: Regression analysis

Regression analysis is one of the most preferred and smart choices for sales forecasting. This technique can help companies to perform in-depth quantitative analysis of factors that might be affecting their sales processes. This method can lead to success only if you have the necessary capabilities and domain knowledge to understand the factors that impact the sales performance of your company.

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Quantzig’s Sales Forecasting Solution Helps a Renowned Telecommunication Network Services Provider Generate Revenue by 10%-15%

The client- A renowned telecommunication network services provider

Area of engagement- Sales forecast

The ongoing innovations and developments are compelling the telecommunication network industry to improve their network efficiency and offer expanded services to the customers. The industry at large will witness a stipulated growth owing to the intense market competition and rising investments in new telecommunication technologies such as wireless communication and satellite. In addition, the growing concern for affordability in the services while maintaining the service quality is necessitating businesses to re-define their existing service architecture and enhance their service offerings. Along with the conventional factors, the rising number of internet users worldwide will fuel the growth of the telecommunication network space.

Some of the factors that may curtail the growth of the telecommunication network include:

  • Higher levels of connectivity: Today, with the relentless growth in technology, IoT is slowly paving its way into the telecommunication network space. It is predicted that the number of connected devices is going to reach 21 billion and to sustain the growth of the technology, telecommunication network providers should scale their levels of connectivity. Moreover, this places a lot of pressure on the network providers to streamline their technical capabilities to meet the growing demand.
  • Competition from other OTT services: It is estimated that approximately 2.5 billion people worldwide rely on messaging apps as compared to the conventional text services offered by the telecom This shows a radical decline in the Average Revenue Per User, where the text services are expected to die out completely. The growing presence of numerous OTT service providers is compelling telecommunication network providers to invest highly in innovations to scale their service offerings.

To address such challenges and accurately forecast the sales, leading telecommunication network providers are augmenting the need for a sales forecast solution. Sales forecast helps businesses gain better visibility into the real-time sales data and increase sales predictability through fine-tuning the forecast accuracy. In addition, a sales forecast solution can help telecommunication network providers understand the demand for the services, and shape the pricing strategy to develop business efficiency.

The Business Challenge

The client, a renowned telecommunication network provider, wanted to gain an accurate view of the sales and help them make informed decisions. With the help of a sales forecast solution, the telecommunication network provider needed to gain adequate insights into the sales performance and visualize their targets and achievements. The primary objective of the telecommunication network provider was to calculate the profits, take decisions on investments, and launch new services to the customers.

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The Solution Benefits and the Business Impact

Strategies that we recommend to improve service efficiency and enhance sales performance

The sales forecast solution offered by Quantzig helped the telecommunication network provider calculate the sales and understand the current trends in the market. Based on the historical sales data, the client was able to monitor the sales target much easier and devise an effective sales strategy to achieve the desired goals. In addition, the telecommunication network provider was able to understand the relative cross-sell and up-sell opportunities to optimize the overall sales performance. Furthermore, the sales forecast solution enabled the client to maximize the opportunity to generate better revenue.

Sales Forecast Solution Predictive Insights

Quantzig’s sales forecast solution assisted the telecommunication network provider to understand the preferences of the customers and aggregate the forecasts based on the sales interactions with customers. The telecommunication network provider was able to streamline their market efforts and improve their overall revenue by 10%-15%.


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Salesforce Analytics Helps a Telecom Industry Client Promote Sales and Business Development

The client: Telecom industry major

Area of engagement: Salesforce analytics

The global telecom industry typically includes internet service providers, wireless operators, cable and satellite companies that make communication possible through the phone or the Internet. These establishments create a set-up that allows data to be sent anywhere in the world. The telecom industry is primarily driven by the ongoing technological innovations and developments to offer a wide range of facilities at low-cost margins. Furthermore, the emergence of the internet over the past couple of decades has boosted the growth of this industry.

Although the industry is witnessing a promising growth, certain factors are expected to hinder the growth of the telecom industry. These factors include:

  • Increasing competition: Over the past few years, there has been a substantial increase in the competition among over the top (OTT) services providers. Also, according to a recent research report, it is estimated that approximately 2.5 billion people use messaging apps globally, which is further increasing the level of competition between service providers.
  • Innovations: Firms within the telecom industry space are under pressure to develop a platform that supports the latest technology owing to the relentless growth in innovations. Moreover, with the integration of IoT services, connecting devices have become more seamless.

Many such factors are compelling telecom industry players to leverage the use of salesforce analytics. Salesforce analytics helps leading firms in this industry space to offer personalized experiences to the customers. QZ- Request free proposalSalesforce analytics also helps businesses better engage with customers and improve customer loyalty.

The Business Challenge

The client, a leading telecom industry player with business operations spread across the globe, wanted to deliver offerings at an affordable rate of interest better. With the help of salesforce analytics, the client wanted to offer a convenient user experience and improve customer loyalty. The client also wanted to revamp their existing architecture and engage more with the customers to enhance their overall productivity.

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Salesforce Analytics Benefits

Strategies that we recommended based on our analysis to help clients promote sales and business development

Ouantzig’s salesforce analytics engagement helped the client address the real-time needs of the customers based on their expectations. The salesforce analytics solution also helped the client effectively manage workflows and processes to increase efficiency, transparency, and profitability. This engagement also assisted the client in comprehending customer behavior and reach out to them seamlessly.

Sales Force Analytics Predictive Insights

With the help of Quantzig’s salesforce analytics, telcos can better understand the customers and make quick data-driven actions. Firms can also gain actionable insights into the marketing performance and the impact on sales revenues. Furthermore, salesforce analytics helps companies effectively analyze customers’ engagement with their products and service offerings to generate better ROI.


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Answers to the questions

Sales Forecasting Enables a Telco Company to increase Their Customer Intimacy By 15%

At present, telco companies across the globe are witnessing increasing pressures to spur competence in their business processes and explore new opportunities. Additionally, due to the radical shift toward innovations, notable telco companies have become more concerned about delivering efficient communication services to the customers. To proficiently meet the needs and demands of the data-driven customers, telecommunications industry players are facing the need for robust sales forecast solutions to expand their service portfolios and upgrade their current networking capabilities. Sales forecast solutions help telco companies to retain the potential customers and evaluate the capability of salespersons to acquire new customers. QZ- request a demoFurthermore, telecom industry players can leverage the use of sales forecast solutions to manually record sales data and increase their focus on marketing efforts.

With years of expertise in offering a plethora of solutions, Quantzig’s sales forecast solutions help firms address issues pertaining to fraud and churn reduction.

The Business Challenge

A notable telco company with business units spread across the globe was facing predicaments in identifying opportunities to optimize costs in the telecommunications industry. The client was also facing challenges in maximizing their revenue potential. As a result, the telco company wanted to leverage the use of Quantzig’s sales forecast solutions. Additionally, the telco company wanted to deliver better services to the customers and improve the quality of the service offerings. Furthermore, they also wanted to implement robust predictive models to evaluate customer attrition levels.

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Sales Forecast Solutions Benefits for the Telco Company

The notable telecom company was able to improve customer retention and promote brand loyalty with the help of Quantzig’s sales forecast solutions. Additionally, the client was able to boost customer loyalty and spend and improve network quality owing to the rising consumer centricity. Furthermore, the client was able to diversify their revenue streams and ensure better services to the customers by conducting model refinements and shorter time-to-market for the services.

Sales Forecast Solutions Predictive Insights:

  • Identified opportunities and designed new service offerings
  • Helped operators optimize their service capabilities
  • Improved performance of existing infrastructure and supported different network standards
  • Enhanced M2M connections by 20% and offered new value-added services to the customers
  • 15% increase in customer intimacy and individual customer service
  • Personalized customer journeys and provided better experience for the customers

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Market Mix Optimization and Campaign Analysis for a Leading Healthcare Client

The rising healthcare expenditure is forcing leading organizations to look for promising solutions to drive growth and bring new value to the organization. Leading businesses in the healthcare industry are advocating the need for marketing mix modeling to allocate market expenditures in an agile and efficient manner. Marketing mix analysis leverages the use of advanced statistics to quantify the impact of marketing campaigns on KPIs. Also, marketing mix modeling helps leading hospitals in the healthcare setup determine ROI and future marketing spend; thereby, developing a robust sales forecast.

With years of expertise in offering a plethora of services, Quantzig’s team of marketing mix modeling experts help the client gauge the effectiveness of their promotional activity, the marketing spend, and price elasticity in the healthcare space. Furthermore, Quantzig’s solutions also help the client to identify the potential customers and profile them based on their treatment patterns.QZ_DEMO

The Business Challenge

A renowned pharmaceutical player in the US wanted to re-align their existing marketing tactics to achieve their financial objectives. The client further wanted to quantify their business drivers on NRx, RRx, and physician acquisition to re-allocate investments. Furthermore, the client wanted to assess the success of digital and social media channels and wanted to leverage the use of promotion mix to identify better opportunities in the healthcare market.

The primary aim of this engagement was to identify the right audiences to invest and drive maximum growth and profits. By leveraging marketing mix modeling, the client wanted to invest in non-personal channels to further supplement personal sales and increase market shares in the pharmaceutical space.

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Our Approach

To understand the marketing tactics, Quantzig’s team of marketing mix modeling experts crafted a dashboard compiling data and information from reliable sources such as prescription data and pricing data. Also, the experts further compiled information from various proprietary sources to understand the recurring seasonal discounts, competitor sales, purchase funnel, economic indicators, and media spending and GRPs.

Marketing Mix Modeling Solution Benefits:

With the help of Quantzig’s effective marketing mix modeling solution, the client was able to optimize commercial investments across channels such as DTC, E-detailing, and TV, etc. The optimization solution further helped the sales force further understand the optimal call frequency. Furthermore, the solution assisted the client devise effective campaigns during different seasons and implement robust marketing and promotion tactics.

Marketing Mix Modeling Predictive Insights:

  • Gain actionable insights in terms of yearly and monthly trends for new prescriptions and other variables related to various marketing tactics
  • Organize activities to generate incremental prescriptions to further target the physicians
  • Identify the key marketing drivers and devise strategies to deliver higher value in the future
  • Collate information during the growth and decline of the business
  • Effectively analyze the effectiveness of each individual campaign to understand the ROI
  • Develop a robust synergy analysis to assess direct and indirect impact of media types on incremental prescriptions
  • Identify the media types that performed well in the short-term

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Sales Forecasting for a Water Filter Products Supplier Helps in Real World Business Forecasting

In the current fast-paced environment, organizations are facing robust challenges in accurately forecasting sales, reducing the loss of revenue, and streamlining their inventory levels. A recent survey projected that a considerable number of manufacturers consider sales forecasting as an effective strategy to achieve their business objectives. In the water filter products space, sales forecasting helps organizations understand the product demand, develop an on-hand inventory, and further shape the pricing strategy. Effectively implementing sales forecasting helps in developing better financial forecasts, in turn, enhancing bottom line performance. From the suppliers’ perspective, organizations can improve lead-time, increase revenues, and streamline production.

With years of expertise in offering a plethora of services, Quantzig’s sales forecast solution provides better visibility to the client in terms of sales performance and the future buying behavior. Our solution also delivered superior product pricing while improving service levels and customer loyalty in the water filter products space. Through a robust engagement, the client could further automate the data entry process, demand volatility, and ensure better supply chain visibility. Quantzig’s solution also helped the client monitor accuracy in sales and improve financial planning.QZ_DEMO

The Business Challenge

A renowned water filter products supplier with a considerable number of offices across the globe was facing predicament forecasting their sales and meeting the right target audience. The client wanted to effectively track their sales performance and predict the future performance at the volume, revenue, and profit level. They also wanted to effectively analyze the sales data based on products and by customers.

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Sales Forecasting Solution Benefits

Through a robust engagement, the client was able to gain a clear and accurate view of customers’ demands and optimize inventory levels. The engagement also further assisted the client improve their lead times, increase revenues, unit sales, and SKU projections. Furthermore, the client was able to collaborate in real-time with the sales and demand teams and gained better visibility into the sales performance.  Sales forecasting solution further assisted the client to robustly resolve supply chain complexities and deliver superior product pricing without compromising their margins and cash flow.

Sales Forecasting Solution Predictive Insights

  • Determine how to best allocate the resources and optimize financial performance
  • Improve product scheduling, inventory management, and financial planning
  • Improve service levels, reputation, and customer loyalty
  • Effectively monitor accuracy and forecast sales performance

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Increasing Product Sales for Automotive Components Manufacturer Through an Effective Sales Forecast Solution

In this rapidly changing business environment, sales forecast becomes an integral part of business management. Especially in the automotive landscape, sales forecast helps companies effectively manage the inventory, cash flow, and implement a strategic plan for sustenance of the market. Moreover, through a robust sales forecast solution, organizations can further estimate the quantity of goods and services and the profits associated with their sales. Furthermore, organizations can also leverage the use of sales forecast to systematically devise business plans; thereby, reducing the risks and wastage of allocated resources. Moreover, in this competitive-centric environment, sales forecast helps leading automotive businesses to prepare a budget for the future and determine the required production capacity. Based on the market performance, sales forecast can also help businesses to include products to the existing portfolio and subsequently drop the non-performing products and services. Accurately forecasting sales can further reduce the problems associated with cash flow and production and act in accordance to effectively retain staff and financing needs.

Quantzig’s sales forecast solution assists the client to implement an effective tool in monitoring and managing businesses. The client can further identify problems and opportunities in the automotive space and further analyze churn rates of the customers. Quantzig’s sales forecast solution also helps organizations to attract new customers and make better-informed decisions.QZ_DEMO

The Business Challenge

Like all other manufacturing companies, a leading automotive components manufacturer wanted to understand their sales performance. In the initial days, the client saw significant growth in their market shares. However, with the entry of a considerable number of competitors, the automotive components manufacturer started facing challenges retaining their market shares. The client wanted to devise effective strategies to improve product sales and enhance their offerings across the niche market segments. The client also wanted to forecast sales to effectively plan production processes and achieve its goals in terms of sales revenue, efficiency improvement, and customer care.

The primary objective of the engagement was to revamp the existing sales architecture and devise more effective sales plan.

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Sales Forecast Solution Benefits

After gaining a detailed information, the client was able improve marketing performance, gain more profit, and plan policies. This helped the client effectively monitor competitive product or segment trends. Additionally, the client was able to analyze customer growth and track the latest technology development in the automotive space. Quantzig also helped the client forecast past sales data, industry-wide comparisons, and economic trends. This helped them predict short-term and long-term performance and make informed business decisions.

Sales Forecast Solutions Predictive Insights:

  • Efficiently allocate resources to meet the demands
  • Predict and forecast the sales revenue
  • Effectively plan the future growth of the company
  • Manage workforce, cash flow, and resources
  • Acquire investment capital and maximize the ROI

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Reduce Errors in Your Sales Forecasting with Proven Methods

Businesses are being more focused on accurate sales forecasting as deviations in forecast versus actual sales figure could cost them in terms of lost revenue opportunities. As a result of this, the production forecast and other buFree demossiness operations will also take a hit. Accurate sales forecasting enables the manager to cope with sudden changes in demand levels, counter competitive moves, and manage seasonality. For such reason, sales forecast is no more a luxury but a necessity for an organization.

Here are some of the most popular forecasting tools used by organizations to accurately predict sales:

Opportunity Stages Driven Model

Every salesperson would be tracking his/her sales progress by analyzing the likelihood of converting a prospect based on their sales cycle. There is a higher chance of conversion if the client is progressed further down the sales cycle.

The Calculation

All opportunities are mapped out and assigned a probability for the deal to be closed. The further down the sales cycle a prospect is in, the higher the probability of conversion.

Calculation:

Expected Revenue = Deal Amount * Probability to close

All the leads or opportunities are then mapped out according to the stages they are at, and with its help, an expected revenue figure can be forecasted.

Sales Forecasting Opportunity Stage ModelManual calculation of this model can be tedious and time-consuming. Therefore, adopting a good CRM software will aid in sales forecasting by eliminating human error and simplifying the process.

The Lead Driven Model

The lead driven model focuses on the value of each lead and assigning a probability for those to convert into revenue.

The Calculation

The sales team must first figure out the average value of a lead.

Average Lead Value = Average Sales Price x Conversion Rate from Lead to Customer

Here, the conversion rate from lead to customer can be derived from historical conversion data.

The next step is to ascertain the number of leads required to achieve a target revenue. This can be estimated by:

Leads Required = Desired Revenue / Average Lead Value

For instance, if a business targets a $100,000 revenue with an average lead value of $1500.

Leads Required = $100,000 / $2,000

= 50 leads

The sales forecasting can now be done using CRM software; but it could also be carried out by identifying the expected number of leads and multiplying it by the average value per lead.

Advanced Predictive Sales Forecasting

With the advent of software and devices with intense computing power and complex econometric models, it has become possible to assign a forecast figure by taking into account multiple factors affecting sales. By including multiple factors that influence sales, the sales team can come up with more accurate forecast. One such model is by using personal conversion rate of each employee, the average length of a sales cycle, and the probability of an opportunity closing into sales.

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