All language subtitles for 10 - Sales Bottomup Intro V1 - lang_en

Let's say you're the sales manager for a company that makes flatware,

say using renewable products like bamboo,

and you've been asked to forecast the sales for the company.

Your sales team has several accounts which offer opportunities to make a sales deals,

and you're trying to forecast your sales metrics for the next year.

Account refers to the companies where you provide your products in bulk.

You're not selling to the individual customer here,

but rather to the company that will buy the products in bulk.

Now, let's go over sales forecast example using a bottom-up approach.

This is the more common approach and it comes from the sales file historical data.

We start with having one row for each person in our sales team.

So, in the model,

we are trying to understand for each person in our sales team,

which account is this opportunity with?

How many units is this opportunity likely to create a booking for or sale?

Based on how long the sales contract would be for,

what are the sales that we would generate if

these units were sold each month in the contract term?

That provides us with our bookings forecast.

In column F, we can go one step further and we can

ask how likely is the probability of a win for this opportunity?

Based on that probability,

we can calculate the weighted bookings forecast.