It’s no secret that every business owner wants to know what the future holds for their company. After all, it’s hard to plan for the future without a clear idea of what lies ahead.
And that is where revenue forecast tools come in.
You must have also made revenue predictions for your business. But, have you ever found that the actual results are vastly different from what you anticipated?
It’s a common challenge for many revenue operations teams out there. In fact, a report says 93% of leaders are unable to forecast revenue within 5 percent, even with two weeks left in the quarter.
From revenue leakages to disastrous business decisions, things can go south in no time when predictions don’t align with reality. So, what can revenue operations teams do to reduce this gap between revenue predictions and actual results?
In this article, we will talk about all things revenue forecasting and the 15 best revenue forecast tools you can leverage for accurate forecasting.
What is Revenue Forecasting?
Revenue forecasting is the process of predicting the future revenue of a business based on historical data and current market trends.
As George Santayana once said, “To know the future, you must know the past.” This statement rings true when it comes to revenue forecasting in the business world.
Think of revenue forecasting as trying to make informed guesses about how much money you’ll make next year based on how much you made this year and what you think might change in the market or with your customers.
For example, let’s say a business sees that its sales have been steadily increasing over the past few years. Based on this trend, they might forecast that they’ll continue to see growth in the coming years. With this information, they could make strategic decisions about how to allocate their resources and investments to fuel that growth.
Revenue Forecasting in the Changing Landscape for 2023
Although the definition above may sound straightforward, revenue forecasting comes with a number of challenges for RevOps teams to navigate. Here are a few:
1. Market fluctuations
In recent years, we’ve seen lots of ups and downs in the market due to the global pandemic, political instability, and economic downturns. Besides, 73% of CEOs around the world believe global economic growth will decline over the next 12 months. This volatility can make it challenging to predict future revenue accurately, as market conditions can change rapidly and unpredictably.
2. Technological evolution
Technology is advancing at an unprecedented pace so much so that the emerging tech will experience a growth rate of 104% between 2018 and 2023. This rapid pace of technological change can make it difficult for RevOps teams to forecast revenue accurately, as new products and services may have unpredictable impacts on revenue.
3. Data quality issues
41% of companies cite inconsistent data across technologies, as their biggest challenge. This can be a significant issue for revenue forecasting, as inaccurate or incomplete data can lead to unreliable forecasts. This can further drive failed strategies and wasted resources.
4. Intensified market competition
The rate at which new businesses have been entering the market has generally been rising over the past decade. With so many companies in the market, the competition becomes intense leading to pricing pressure and changes in consumer behavior. This makes it challenging for RevOps tea,s to forecast revenue accurately.
5. Shifting consumer trends
The COVID-19 pandemic has accelerated the adoption of digital technologies by several years. This rapid shift in the consumer behavior can make it difficult to predict how customers will respond to new products, services, and marketing campaigns.
As you just read, revenue forecasting can be a wild ride, but don’t worry! With the right tools and solutions, you can make it through safely. We’ve got your back and have rounded up a list of the best revenue forecasting tools out there to help you make a lucrative decision.
But, before we get to the juicy part of the article, let us understand the process.
Decoding the Revenue Forecasting Process
It’s a world where numbers reign supreme, and insights are king. But don’t let the math intimidate you – revenue forecasting is not just about crunching numbers.
It’s more than that. Let us walk you through the entire process.
Step 1: Define the forecasting period
The first step is to determine the specific time frame for which you want to forecast revenue. Make sure the period aligns with your business goals and objectives.
For example, if you are planning an important marketing campaign, you may opt to forecast revenue for the next quarter. Alternatively, if you are developing a long-term business plan, you may choose to forecast revenue for the next several years.
Step 2: Gather historical data
Collect past sales data, financial reports, and other relevant information that can help identify trends and patterns in revenue over time. Such data may include sales revenue, profits, expenses, customer demographics, and other metrics that hold relevance to your business.
Step 3: Analyze current market trends
Examine the present market conditions, competition, and other external factors that could influence the revenue of your business. This may involve analyzing changes in consumer behavior, technological advancements, and economic conditions. Use this information to identify potential opportunities and threats that could impact revenue.
Step 4: Identify key revenue drivers
Identify the major drivers that have an impact on the revenue of your business, such as product pricing, marketing campaigns, and sales strategies. This may necessitate analyzing data from previous periods and leads to determine which factors had the most significant influence on revenue. These factors are called leading indicators.
Keeping an eye on these leading indicators is nothing but simply monitoring sales pipeline, conversion rates, and customer engagement to get a better idea of where your leads are headed and make informed predictions.
Step 5: Develop a forecast model
Leverage the previously gathered historical data, market trends, and key drivers to develop a revenue forecast model. This model should take into account all the relevant factors that could impact revenue. Depending on your business, this could involve developing a financial model, conducting regression analysis, or using other statistical techniques to forecast revenue.
Step 6: Validate the model
Validate the forecast model by comparing it to actual revenue figures from previous periods. Make adjustments as necessary to ensure the model accurately reflects your business’s revenue expectations. This may involve tweaking key assumptions or adjusting the model to account for new data.
Step 7: Monitor and adjust
Monitor actual revenue results during the forecasting period and adjust the forecast model as necessary to reflect any changes in market conditions or business performance. This may involve updating assumptions, revising sales forecasts, or making other adjustments to the model.
There you have it. You know everything about the process of revenue forecasting. You are now ready to choose the tools your business needs in 2023.
15 Best Revenue Forecast Tools of 2024
With the rise of revenue forecast tools, businesses of all sizes can make accurate predictions and stay ahead of the curve. These tools can help you leverage the power of data to make informed decisions, allocate resources effectively, and plan for the future with confidence.
Without any further ado, let’s dive into the list and explore each tool in detail.
1. Nektar
Once you remove human bias, errors, and other issues that stem from manual efforts, satisfaction with forecasting accuracy grows to 76%.
To experience this accuracy, Nektar is the best fit. It is a revenue intelligence platform that helps businesses improve their forecasting accuracy. By cleaning the dirty data in their CRM, Nektar turns it into accurate and readable data which can then be used to provide real-time insights into sales performance.
The platform uses machine learning algorithms to analyze historical data and identify trends and patterns in sales behavior. Sales teams can forecast revenue accurately and adjust their strategies to maximize revenue growth.
Key features:
- Automated tracking of leads, deals, and pipeline metrics
- Collaborative forecasting and scenario planning
- Rules configuration for sales updates
- Real-time notifications and alerts for revenue insights
- Historical data analysis and trend forecasting
- User-friendly interface with customizable dashboards
- Integration with popular CRM platforms
2. Anaplan
Anaplan is a cloud-based platform that offers advanced forecasting features for revenue planning. It allows businesses to create flexible financial models, track sales performance, and forecast revenue accurately.
Using Anaplan, users can access real-time data and make informed decisions to drive revenue growth. The platform also offers scenario modeling and what-if analysis capabilities, enabling businesses to identify opportunities and optimize their sales strategies.
Key features:
- Cloud-based platform for collaborative sales planning and execution
- Powerful modeling capabilities for complex sales scenarios
- Shared financial planning and forecasting
- Real-time data integration and analysis
- Scalable for enterprise-level sales operations
3. Cien
Cien is a revenue intelligence tool that uses AI to analyze sales data and predict outcomes. The platform helps businesses forecast revenue accurately by identifying patterns and trends in sales performance.
With Cien, sales teams can make data-driven decisions and focus on areas that are likely to generate the most revenue. The platform also provides insights into how sales reps can improve performance and meet their targets.
Key features:
- AI-powered sales performance analytics and forecasting
- Automated data collection and analysis from multiple sources
- Intelligent sales coaching recommendations
- Advanced sales team benchmarking and goal setting
- Integration with popular CRM and marketing automation platforms
4. Kluster
Kluster is a sales forecasting and analytics platform that uses AI to help businesses improve their revenue forecasting accuracy. The platform provides real-time insights into sales performance, allowing sales teams to identify areas for improvement and optimize their sales strategies.
Kluster’s forecasting capabilities enable businesses to accurately predict future revenue and identify potential risks and opportunities.
Key features:
- Comprehensive sales pipeline management and forecasting
- Powerful data analytics and visualization tools
- Sales performance tracking and reporting
- Advanced lead management and scoring
- Integration with popular CRMs and marketing automation platforms
5. Chorus by Zoom
Chorus is a conversation intelligence platform that can help businesses improve revenue forecasting by analyzing sales calls and providing actionable insights. The platform uses AI to transcribe sales calls and analyze them for key insights, such as buying signals, customer sentiment, and competitor mentions.
The platform help sales teams in identifying patterns and trends in customer behavior and adjust their strategies accordingly
Key features:
- Comprehensive sales pipeline management and forecasting
- Powerful data analytics and visualization tools
- Sales performance tracking and reporting
- Advanced lead management and scoring
- Integration with popular CRMs and marketing automation platforms
6. Madkudu
Madkudu is a revenue intelligence tool that uses machine learning to analyze customer data and provide insights that can help businesses better their revenue forecasting accuracy.
The platform analyzes customer data from various sources, such as CRM systems, marketing automation tools, and customer support systems, to create a comprehensive view of customer behavior. Businesses can also identify patterns and trends in customer behavior and adjust their sales strategies accordingly.
Key features of Madkudu are
- AI-powered lead scoring and prioritization
- Advanced segmentation and targeting based on predictive analytics
- Real-time data enrichment for lead qualification
- Integration with popular CRMs and marketing automation platforms
- Customizable scoring models and data models for specific industries
7. Gryphon
Gryphon is a sales acceleration platform that can help businesses get better at accurate revenue forecasting by providing real-time visibility into sales activities.
The platform automates call logging and provides analytics that can help businesses optimize their sales strategies. Gryphon can also help businesses comply with various regulations, such as GDPR and TCPA, to avoid potential fines and legal issues.
Key features:
- Compliance and risk management for sales calls and activities
- Real-time call analytics and performance tracking
- Advanced sales coaching and training tools
- Integration with popular CRMs and communication tools
- Secure and scalable for enterprise-level sales operations
8. Celonis
Celonis is a process mining platform that can assist businesses in revenue forecasting correctly by identifying bottlenecks and inefficiencies in their sales processes.
The platform uses AI to analyze sales data and provide insights into how sales teams can optimize their workflows. Celonis can also help businesses identify areas for cost savings and revenue growth opportunities.
Key features:
- AI-powered process mining and analytics for sales operations
- Real-time data integration and analysis across multiple systems
- Advanced process optimization and automation tools
- Integrated KPI dashboards and reporting
- Scalable for enterprise-level sales operations
9. Freshsales by Freshworks
Freshsales is a cloud-based CRM platform that can be used for predicting business revenue accurately by providing real-time insights into customer behavior. The platform offers advanced analytics features, including pipeline tracking, forecasting, and performance analysis.
By enabling businesses to manage their sales pipeline more efficiently, Freshsales empowers sales teams to prioritize high-value prospects.
Key features:
- Comprehensive sales pipeline management and forecasting
- Advanced lead and contact management tools
- Real-time collaboration and communication features for sales teams
- Automated sales workflows and approvals
- Integration with popular marketing automation platforms & business tools
10. Xactly Incent
Xactly Incent is a sales compensation platform that can be used by businesses to boost their revenue forecasting accuracy by providing incentives to sales reps based on their performance.
The platform offers advanced incentive modeling capabilities, allowing businesses to create custom incentive plans that align with their revenue goals. Xactly Incent can also help businesses track sales performance and identify areas for improvement.
Key features:
- Comprehensive sales planning and execution tools
- Advanced opportunity and account management feature
- AI-powered sales coaching and mentoring
- Integrated KPI dashboards and reporting
- Scalable for enterprise-level sales operations
11. Upland Altify
Upland Altify is a revenue optimization platform that can help businesses predict revenue in an appropriate manner by providing a comprehensive view of their sales performance. The platform offers advanced analytics and forecasting features, including pipeline analysis, sales forecasting, and performance tracking.
Upland Altify can also help businesses optimize their sales processes and prioritize their sales activities based on revenue potential.
Key features:
- Account planning and opportunity management features
- Automated customer insights and buyer behavior analysis
- Customer relationship management
- Real-time insights and recommendations
- Mobile app for on-the-go operations
12. Microsoft Dynamics 365 Sales
Microsoft Dynamics 365 Sales is a cloud-based CRM platform that can help businesses predict revenue by providing insights into customer behavior. The platform offers advanced analytics features, including pipeline tracking, forecasting, and performance analysis.
Microsoft Dynamics 365 Sales can also help businesses manage their sales pipeline in a better way, empowering sales teams to focus on high-value leads.
Key features:
- Automated lead scoring and routing
- Real-time recommendations and insights based on customer behavior & engagement
- Intelligent deal modeling and forecasting
- Automated proposal generation and approval workflows
- Customizable sales dashboards and reports
- Integration with popular sales tools for seamless operations
- Accessible via desktop, mobile, and cloud-based platforms.
13. Oracle Sales Cloud
Oracle Sales Cloud is a sales automation platform that operates in the cloud and offers businesses the ability to gain real-time insights into sales performance. This platform is designed to enhance the accuracy of revenue forecasting using its advanced analytics features like pipeline tracking, forecasting, and performance analysis.
With Oracle Sales Cloud, businesses can optimize their sales processes, prioritize high-value opportunities, and use AI-powered tools such as predictive lead scoring and recommendation engines to make data-driven decisions.
Key features:
- Lead and opportunity management
- Customizable sales dashboards and reports
- Sales automation features
- Mobile accessibility for remote sales management
- Integration with other Oracle Cloud applications
- AI-powered insights and recommendations
14. Pega Sales Automation
Pega Sales Automation is a sales automation platform that can also help companies in predicting revenues by providing insights into customer behavior. The platform offers advanced analytics features, including pipeline tracking, forecasting, and performance analysis.
Pega Sales Automation can also help businesses manage their sales pipeline more efficiently, allowing sales teams to focus on high-value opportunities.
Key features:
- Automated lead routing and prioritization
- Real-time recommendations and insights for sales reps
- Intelligent deal modeling and forecasting
- Automated proposal generation and approval workflows
- Integration with popular sales tools for seamless operations
15. SAP Sales Cloud
SAP Sales Cloud is a sales automation platform to help businesses improve their revenue forecasting accuracy by providing real-time insights into sales performance. The platform offers advanced analytics features, including pipeline tracking, forecasting, and performance analysis.
SAP Sales Cloud can also help businesses optimize their sales processes and prioritize their sales activities based on revenue potential.
Key features:
- AI-powered insights and recommendations
- Mobile app for on-the-go sales productivity
- Lead and opportunity management features
- Sales forecasting and pipeline management capabilities
- Integration with popular sales tools
16. Fullcast
Fullcast is a revenue intelligence tool that helps B2B sales teams to optimize their sales funnel and increase revenue. It uses AI to identify the most valuable prospects and predict which deals are most likely to close. It also provides insights on how to improve sales processes and personalized coaching for sales reps.
Key features:
- Data analysis and insights to help optimize sales strategies
- Actionable recommendations to increase sales revenue
- Sales teams can prioritize leads and identify high-value opportunities
- Automated data capture and analysis
- Insights and guidance available in real-time
17. SalesDirector by Bigtincan
SalesDirector is an AI-powered revenue intelligence platform that helps B2B sales teams to increase productivity, close more deals, and maximize revenue.
It uses AI to automate sales workflows, track sales activities, and provide real-time insights and coaching for sales reps. It also integrates with popular sales tools like Salesforce, HubSpot, and ZoomInfo.
Key features:
- AI-powered sales forecasting and pipeline management
- Automated data capture and analysis for greater accuracy
- Insights and visibility into the entire sales process
- Sales teams can identify high-priority leads and opportunities
- Real-time notifications and alerts
- Integration with popular sales tools for seamless workflow
18. Infor Sales
Infor Sales is a sales force automation tool designed to optimize sales processes and improve sales team productivity. It helps businesses in lead management, opportunity management, sales forecasting, and quota management. Infor Sales aim to provide a 360-degree view of the customer, helping sales teams build stronger customer relationships and close deals faster.
Key features:
- 360-degree view of the customer to build stronger relationships
- Lead management and opportunity tracking
- Sales forecasting and pipeline management
- Quote management and proposal generation
- Real-time analytics and insights for data-driven decision-making
19. Varicent
Varicent is a sales performance management tool that automates and simplifies the compensation process for sales teams. It enables organizations to create, manage, and administer compensation plans, providing real-time visibility into sales performance metrics.
Varicent helps sales teams optimize their compensation plans to incentivize top performers and drive sales growth.
Key features:
- Real-time visibility into sales performance metrics
- Automated and simplified compensation administration
- Channel revenue management capabilities
- Territory and quota management feature
- Powerful data integration and management options
20. Vortini
Vortini is a sales forecasting and revenue planning tool designed to help businesses make data-driven decisions. It provides real-time visibility into sales forecasts, pipeline trends, and revenue projections. Vortini helps sales teams forecast more accurately, identify growth opportunities, and optimize their sales strategies for maximum results.
Key features:
- Real-time visibility into sales forecasts and pipeline trends
- Customizable reports and dashboards for greater insights
- Territory and quota management features
- Integration with popular sales tools for seamless workflow
- Automated data capture and analysis for more accurate forecasts
Choose wisely!
This was a rundown of some of the best revenue forecast tools available on the market today. With these powerful tools, businesses can take the guesswork out of their revenue predictions and make informed decisions about the future of their company.
But before you choose a revenue forecasting platform, there are a few key factors to consider. Think about –
- Needs of your business,
- Scalability & flexibility of the platform,
- Integration capabilities
- Ease of use
- Cost & Pricing
- Customer support & security
Now, start exploring what these tools can do for your business. Having the right platform can put you on the path to expert-level revenue prediction leading to multi-fold advantages.
Take Nektar for a spin by getting in touch with one of our experts. Also, check out how much data your CRM is missing using Nektar’s free CRM scan.
