Digital Marketing Dictionary

Sales Forecasting

By June 20, 2020 No Comments

Last Updated on

Sales forecasting is simply the process of predicting future sales. Generating accurate sales forecasts enable business and marketing strategists to make better business decisions and leverage their position in their respective niche.

In order to obtain accurate sales forecasts, a business requires extensive data from previous years. This kind of information can be analyzed for trends and patterns which can be interpreted and tested for future results.

If a business does not have this information, they can use market research and other less accurate information to forecast the future of their sales performance.

Why is Sales Forecasting Important?

When a business has established their sales forecast, they gain competitive insight on how to manage their cash flow, marketing budget, and work processes.

Essentially, sales forecasting allows you to:

  1. Determining production capacity (i.e. availability of equipment, process of cash flow, costs of employment, etc.)
  2. Establishing a sales budget (i.e. for advertisements and other costs associated with customer acquisition)
Not sure what this means for your business? Get in touch to learn how to take your customers on a conversion focused journey — send a message.

Author Kevin Urrutia

Kevin is the founder of Voy Media. Kevin is an avid outdoorsman and nature lover; when not in the concrete jungle of New York, he can be found trying to explore a real one. Follow Kevin on Twitter Voy Media has been named the #1 Facebook Marketing Agency and one of the fastest growing marketing agencies in NYC. Voy Media crafts custom digital marketing strategies for clients, including services in Facebook Ads, Google Ads, Amazon Ads, email marketing and more.

More posts by Kevin Urrutia

Leave a Reply