How to Use HubSpot's Deal Forecasting Tool (With Examples)

In the competitive realm of sales, the ability to predict future revenue accurately is invaluable. Deal forecasting in HubSpot empowers businesses with data-driven insights, facilitating strategic planning and resource allocation. This comprehensive guide explores the intricacies of deal forecasting within HubSpot, providing a roadmap for businesses seeking to leverage this powerful feature to its full potential.

The Strategic Advantage of Deal Forecasting

Forecasting deals is more than just an exercise in optimism; it's a strategic tool that shapes decision-making processes across an organization. By accurately predicting future sales, businesses can better manage cash flow, align marketing efforts, and optimize sales strategies to meet growth objectives. HubSpot's deal forecasting feature integrates seamlessly with your sales pipeline, offering a real-time view of potential revenue based on the current status of deals.

Setting Up Deal Forecasting in HubSpot

HubSpot simplifies the process of setting up deal forecasting, ensuring that businesses can quickly start leveraging predictive insights.

Step 1: Defining Your Sales Pipeline

1. Create a Sales Pipeline: Begin by defining the stages of your sales pipeline in HubSpot. Ensure that each stage accurately reflects the steps your deals typically go through, from initial contact to closing.
2. Assign Probability Percentages: For each stage of the pipeline, assign a probability percentage that reflects the likelihood of a deal in that stage closing. These percentages are crucial for accurate forecasting.

Step 2: Inputting Deal Information

1. Enter Deals: Input all current deals into HubSpot, assigning each to the appropriate stage of the sales pipeline.
2. Update Deal Values: Ensure that each deal has an accurate value assigned. This value is used in forecasting the potential revenue.

Step 3: Accessing Forecast Reports

1. Navigate to Reports: HubSpot offers pre-built forecast reports that can be accessed from the Reports dashboard.
2. Customize Your Forecast View: Tailor the forecast report to display information relevant to your specific needs, such as forecast by team, sales rep, or time period.

Leveraging Advanced Forecasting Features

HubSpot's deal forecasting goes beyond basic functionality, offering advanced features for deeper insights.

Custom Forecast Categories

Beyond the default probability percentages, HubSpot allows for the creation of custom forecast categories. These categories can reflect nuances in your sales process, providing a more granular view of your forecast.

Using Predictive Lead Scoring

Integrating HubSpot's predictive lead scoring with your deal forecasting can enhance the accuracy of your predictions. By assigning leads a score based on their likelihood to convert, you can adjust your forecasts to account for the quality of leads in your pipeline.

Real-time Forecast Adjustments

HubSpot's dynamic interface allows for real-time adjustments to your forecasts. As deals progress or new information becomes available, sales reps and managers can update deal statuses and values, ensuring the forecast reflects the most current data.

Best Practices for Optimizing Deal Forecasting in HubSpot

To fully capitalize on HubSpot's deal forecasting capabilities, consider these best practices:

• Regularly Review and Update Sales Stages: Ensure that the stages of your sales pipeline remain aligned with your actual sales process. Regular reviews allow for adjustments that can improve the accuracy of your forecasts.
• Train Your Team: Educate your sales team on the importance of accurate deal information and regular updates. Their adherence to best practices is crucial for reliable forecasting.
• Analyze Historical Data: Use HubSpot's analytics tools to compare forecasted outcomes with actual sales results. This analysis can reveal trends and inform adjustments to improve forecasting accuracy over time.
• Integrate with Marketing Efforts: Collaborate with your marketing team to ensure that lead generation efforts align with forecasted sales goals. This alignment ensures that your sales pipeline remains healthy and capable of meeting predicted revenue targets.

Examples of How to Use HubSpot's Forecasting Tool

Here are seven practical examples of how to use deal forecasting in HubSpot, including steps to leverage the tool itself and an example of incorporating the goals tool.

1. Forecasting Monthly Sales Revenue

Objective: Predict monthly sales revenue to assess if your team is on track to meet its sales targets.

Instructions:

1. Navigate to Sales > Forecasts in your HubSpot account.
2. Set the time frame to "Monthly" at the top of the page.
3. Review the forecasted revenue based on deals in different stages of your sales pipeline. The forecast uses deal stage probabilities and amounts to estimate potential revenue.

2. Assessing Sales Performance by Team

Objective: Evaluate the performance of different sales teams by comparing forecasted revenue.

Instructions:

1. In the Forecasts tool, use the team dropdown menu to select a specific sales team.
2. Compare the forecasted revenue of different teams for the current quarter or month.
3. Analyze which teams are likely to exceed their targets and which may need additional support.

3. Identifying High-value Deals That Require Attention

Objective: Focus on high-value deals in the pipeline to ensure they're moving towards closing.

Instructions:

1. Go to Sales > Deals and use filters to sort deals by amount.
2. Create a custom view for deals above a certain value threshold.
3. Use the Forecast tool to monitor the progress of these deals, focusing on those in the decision-making stages.

4. Setting and Tracking Sales Goals

Objective: Set quarterly sales goals and track progress towards these goals using the goals tool in HubSpot.

Instructions:

1. Navigate to Reports > Dashboard and find the Sales Goals widget.
2. Click Set a sales goal and define your target for the quarter, allocating specific targets for each team or salesperson.
3. Regularly check this dashboard to monitor progress toward goals, comparing actual revenue with forecasted revenue to identify gaps.

5. Optimizing Sales Pipeline for Better Forecasting

Objective: Refine the stages of your sales pipeline for more accurate forecasting.

Instructions:

1. In Settings, go to Sales > Deals and review your deal stages.
2. Adjust the probabilities of each stage to reflect historical conversion rates more accurately.
3. Use the Forecast tool to see how these adjustments affect your revenue predictions, aiming for more accurate forecasting.

6. Customizing Deal Forecasts with Advanced Filters

Objective: Create custom forecast views to focus on specific segments of your pipeline.

Instructions:

1. Within the Forecasts tool, use the Filter option to create a view that isolates deals by criteria like deal owner, deal type, or a custom property.
2. Save this view for quick access, allowing you to analyze forecasted revenue for specific segments of your pipeline.
3. Leverage these insights to make strategic decisions about resource allocation and prioritization.

7. Analyzing Deal Forecast Accuracy Over Time

Objective: Evaluate the accuracy of your deal forecasts to improve future forecasting efforts.

Instructions:

1. Regularly compare your forecasted revenue against actual revenue achieved. This can be done by exporting data from the Forecasts tool and comparing it with historical performance reports.
2. Identify patterns where forecasts consistently overestimate or underestimate actual revenue.
3. Adjust your forecasting methodology based on these insights, refining deal stage probabilities or the criteria for including deals in the forecast.

By leveraging these examples of how to use deal forecasting in HubSpot, sales teams can not only predict revenue more accurately but also gain valuable insights into their sales pipeline, helping to drive strategic decision-making and ultimately boost sales performance.

Conclusion

Deal forecasting in HubSpot represents a pivotal tool for businesses aiming to navigate the future with confidence. By setting up accurate sales pipelines, leveraging advanced forecasting features, and adhering to best practices, organizations can unlock the full potential of this feature. Accurate deal forecasting not only informs strategic decision-making but also aligns teams around shared objectives, driving the business toward sustained growth and success.

Embracing deal forecasting within HubSpot allows businesses to transform data into strategic insights, ensuring that every decision is informed by a clear understanding of future potentials. As you refine your forecasting approach, remember that the goal is not just to predict the future but to shape it, leveraging every insight to steer your business toward its most ambitious goals.