How to Use the Forecasting Tool in HubSpot

Predict future revenue and set up accurate forecasting with the new tool.

Sales forecasting is a crucial tool for any business. It helps you predict future revenue, track progress towards goals, and make informed decisions about resource allocation. HubSpot's forecasting tool empowers you to do just that, providing valuable insights into your sales pipeline.

This step-by-step guide will walk you through using the forecasting tool based on deal stages. By following these instructions, you'll be able to leverage the power of forecasting to gain a clearer picture of your sales performance and achieve your targets.

Requirements:

• HubSpot Sales Hub Professional or Enterprise license
• Users need to be assigned as deal owners, have a paid seat, be part of a team, and have forecast permissions enabled.

How to set it up:

1. Navigate to Reporting > Forecast.
2. Choose a forecasting method:
   1. Deal Stage: Forecasts based on the stages in your sales pipeline.
   2. Forecast Category: Allows forecasting across multiple pipelines.
3. Select pipeline and time period from the dropdown menu.
4. The forecast displays information for each user and team with forecast permissions. Key metrics include:
   1. Revenue goal for each user.
   2. Sum of weighted deal amounts for each user within the selected time period.
   3. Deal amount multiplied by the probability of closing associated with each deal stage in the pipeline.
   4. Ratio of the total weighted amount to the goal (may differ if using unweighted amounts).
   5. Manually entered revenue forecasts by users.
   6. Goals can be set for each user for the selected time period.
      
      Top tip: If this doesn't look very accurate then you may have not created your goals or set the deal stage probability up correctly.
5. Set a goal by clicking create goal in the menu and follow the steps in the form.
6. Set weighted probability for each of the deal stages by going to CRM > Deals > Add pipeline automation.
   1. Each deal stage can be assigned a weight representing the likelihood of closing a deal at that stage.
7. Users can then manually enter their own forecast amount for the selected time period using the pencil icon.

Remember, forecasting is a dynamic process. As you gain more experience and gather more data, you can refine your deal stage weights and overall forecasting approach for even greater accuracy. By consistently using and adapting your forecasts, you'll be well on your way to achieving consistent sales success.