How Do You Choose Methods Of Sales Forecasting?
Sales forecasting is a vital tool to determine the health of a business. It does not matter if a business is small or large. Being able to predict sales allows a company to plan for production and how much of a given item to buy. Companies that successfully forecast sales can increase efficiency and lower costs. Determine which sales forecasting method best suits your company. There are two methods. Quantitative forecasting uses numbers and figures that the company has calculated from previous sales. Qualitative forecasting, in contrast, does not rely on numbers, involving instead surveys of experts in the field, customers and salespeople to predict sales. Think about what your business needs. While these two types of sales forecasting can be used in tandem, quantitative forecasting is used to predict sales in an existing field. Qualitative forecasting is used to predict sales in a field in which the company has not entered. Use more complex quantitative forecasting techniques to under
