Sales Forecasting terminology
Summarize
Summary of Sales Forecasting terminology
This guide introduces key concepts and components of Sales Forecasting within ServiceNow’s Zurich release. It explains how sales forecasts are structured, categorized, and aggregated to help businesses predict future sales based on current opportunities and historical data. The information is essential for configuring forecasting processes and interpreting forecast results.
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Forecast Model
The Forecast Model is the method used to predict sales for a set period using existing opportunity data. Currently, only the Opportunity Amount Forecast model is available, which focuses on forecasting sales from current system opportunities.
- Submission Required: Enabled by default to ensure forecasts are submitted.
- Submission Frequency: Options include weekly, monthly, or customized periods for submitting forecasts, supporting alignment with business calendars.
- Forecast Hierarchy Type: Default is Sales Team, displaying forecasts by sales teams. Alternatively, selecting Territory allows forecasting by regions or territories, which requires additional territory configuration.
Forecast Category
Opportunities are classified based on the certainty of their closure, aiding in more accurate forecasting. Six default categories are provided, configurable by forecast administrators:
- Won: Closed and won opportunities.
- Commit: Opportunities confidently expected to close within the forecast period.
- Strong upside: High potential opportunities with minor uncertainty.
- Upside: Opportunities with potential but lower certainty.
- Pipeline: Early-stage opportunities with uncertain closure.
- Omitted: Opportunities excluded from forecasting due to insufficient data.
Forecast Rollup Method
This defines how opportunities from different forecast categories are aggregated into forecast results. Two main rollup methods are available:
- Single: Each forecast category is shown separately in its own column, containing only opportunities within that category.
- Cumulative: Categories are aggregated cumulatively, with each higher-level category including opportunities from all preceding categories, providing a layered view of forecast potential.
Forecast Schedule
The forecast schedule automates the retrieval of all opportunities to generate up-to-date forecast data, ensuring forecasts reflect the latest sales pipeline status.
Sales Quota Management
Sales quotas can be assigned to representatives and managers based on their role, hierarchy, and the forecast period. This feature helps align sales targets with forecasted sales activities for better performance tracking.
Use the following list of terms to gain an understanding of Sales Forecasting concepts, components, and configuration.
Forecast Model
The Forecast Model is a framework or method used to predict future sales based on historical data, current sales activities, and other relevant factors. It helps businesses estimate the expected sales figures over a specific period, such as a quarter or year. Only one forecast model, Opportunity Amount Forecast is available to the users. You can forecast the sales for the current opportunities in the system. The Submission Required option is enabled by default. From the Submission Frequency list, select weekly, monthly, or configure a customized time period to submit your final forecasts. For more info, see Creating business calendars. By default, Sales Team is selected in the Forecast Hierarchy Type list and the Sales Forecasting dashboard displays the forecasts based on sales teams. To view forecasts by regions or territories, select Territory from the Forecast Hierarchy Type list. To configure a territory see, Configuring the Territory. For more info, see Sales Territory Management.
Forecast Category
- Won: Opportunities that have already been closed and won.
- Commit: Opportunities that sales reps are confident will close within the forecast period.
- Strong upside: Opportunities with greatest potential to close but have some minor uncertainty.
- Upside: Opportunities with potential to close but with lower level of certainty.
- Pipeline: Opportunities in the early stages of the sales process with uncertainty if they will be closed deals.
- Omitted: Opportunities that are excluded from forecast due to lack of data.
Forecast rollup method
The forecast model defines how opportunities in different categories are aggregated into a forecast. There are two primary types of rollups: single and cumulative.
| Column Name on Forecast page | Opportunities that roll up to it from a forecast category |
|---|---|
| Pipeline | Pipeline |
| Upside | Upside |
| Strong Upside | Strong Upside |
| Commit | Commit |
| Won | Won |
| Column Name on Forecast page | Opportunities that roll up to it from a forecast category |
|---|---|
| Open pipeline | Pipeline + Upside + Strong Upside + Commit + Won |
| Cumulative Upside | Upside + Strong Upside + Commit + Won |
| Cumulative Strong Upside | Strong Upside + Commit + Won |
| Cumulative Commit | Commit + Won |
| Won | Won |
Forecast schedule
The forecast schedule fetches all the opportunities in the system and generates the latest forecast data.
Sales Quota Management
You can assign sales quota targets to sales representatives and managers based on their hierarchy, role, and forecast period.