For many manufacturers, sales forecasting inspires about as much excitement as the idea of filing taxes.
As important as it is, manufacturing forecasting tends to be a stressful, time-consuming task with a shaky probability of success.
Despite their best efforts, some studies have found that up to 80% of organizations produce sales forecasts that are off by 25% or more.
is gearing up to change the game with AI-generated projections.
Importance of Sales Forecasting for Manufacturing Businesses
Forecasting in manufacturing typically involves using historical data to predict the type of sales a company can expect during the coming month, quarter, or year. An accurate forecast can serve as a valuable asset to your manufacturing sales strategy by allowing you to:
- Make data-informed decisions
- Spot potential issues before they arise
- Set appropriate sales goals
- Lower costs with increasing gains
- Manage resources efficiently
- Adjust your marketing strategy according
- Make better hiring decisions
Introduction to HubSpot Sales Forecasting
While the HubSpot Forecast tool is not new, it's currently beta-testing a powerful new feature that could make life easier for manufacturing teams everywhere. A select number of accounts now enjoy access to HubSpot Sales Forecasting AI Projections, which are designed to provide more accurate sales predictions.
Research already suggests that AI-infused CRM forecast strategies may soon begin giving manufacturing companies a powerful new edge. Studies by Gartner predict that by 2026, B2B organizations that adopt embedded GenAI sales technologies will be able to cut their prospecting and customer meeting prep times by over half.
Understanding HubSpot Sales Forecasting
Exactly how do CRMs help companies make predictions? Let’s find out with a look at the data you’ll be able to tap into with a HubSpot AI-powered CRM forecast.
Say you want to use HubSpot Forecasting to generate an overview for all teams during a given month. From your dashboard, you’ll navigate to Sales > Forecast > Analyze and use the drop-down menu to filter by pipeline. When you select the Overview for all teams option, you’ll be presented with:
- A weighted pipeline value that multiplies the number of deals by the total deal probability (including closed deals)
- The number of deals won and closed
- The total of monthly forecast submissions from all teams
HubSpot Forecasting will then use this data to present you with a range of projections. You’ll be able to see both the upper and lower-range projections, as well as the most likely midpoint projection.
One of the perks of HubSpot Forecasting is that it also allows you to track the accuracy of your CRM forecasting efforts over time. To get started, simply head over to the aptly named Forecast accuracy over time table, where you’ll be able to measure the accuracy of each AI monthly projection on the 7th, 14th, and 21st day of each month.
Best Practices for HubSpot Sales Forecasting in Manufacturing
A few quick tips can go a long way when it comes to utilizing CRM forecasting for manufacturing efficiency. Here’s what you can do to help the HubSpot Forecasting tool transform your manufacturing data into accurate predictions.
Opt-In to HubSpot Forecasting AI Predictions
Be aware that only Super Admins hold the power to opt in or out of using HubSpot Forecasting’s AI features. If you want to opt in, simply navigate to Sales > Forecast >Turn on AI Forecasting. Don’t be alarmed if the magic doesn’t happen right away – it will take seven days for the feature to collect enough data to start churning out predictions.
Keep Your Deals Up to Date
The accuracy of the HubSpot Forecasting tool’s predictions will largely depend on the accuracy of your records. Make sure that your team knows how to input new deals and update deals as they pass through different stages of the sales pipeline.
Set Forecast Permissions
Make sure you set your Forecast permissions to allow selected team members to create goals. While everyone will be able to view and track the goals, only paid seat holders with the proper permissions will be able to create and update them.
Strengths and Weaknesses of HubSpot Sales Forecasting
Like any new technology, the AI-infused HubSpot Forecasting tool comes with its own set of pros and cons. At the top of its benefits list are a series of real-world benefits for manufacturing businesses and other companies.
AI-driven CRM forecasting can free up your sales team by relieving them of the burden of traditional, mundane forecasting analysis. The AI solution is designed to handle large sets of data and variables to uncover patterns that may have otherwise been very difficult to spot. Not to mention that early tests showed that the addition of AI to HubSpot Forecasting helped some teams boost accuracy by up to 95%.
But it’s important to realize that even the most cutting-edge AI solutions still have limitations. Here are some important considerations to keep in mind about HubSpot’s AI Forecasting tool:
- It depends on the quality of your data. Inconsistent, inaccurate, or limited historical data can easily skew accurate results.
- External factors. AI-driven CRM forecasting draws on historical data and can’t foresee unrelated events like industry or economic shifts.
- Broad focus. While HubSpot Forecasting can be a handy tool for generating a simple win/ loss probability, it doesn’t offer insights into specific deals or nuances.
- Availability. At the moment, AI Forecasting is only available for Sales or Service Hub Professional or Enterprise accounts. HubSpot pricing may prove a barrier to entry for some small businesses.
It’s worth remembering that the AI update to HubSpot Forecasting is still a work in progress. Future optimizations may well work out these limitations and offer even more functionality.
Choosing the Right CRM Tool for Manufacturing Businesses
Innovative technologies like AI-powered forecasting can be incredibly valuable. But they should be far from the only consideration when it comes to choosing the best CRM for your manufacturing business.
Part of why we’re such big fans of the HubSpot CRM is that it comes with everything you need to build a solid manufacturing sales, service, and marketing strategy. The best way to find out if HubSpot is right for your company is to take it for a test drive with a free HubSpot account.
Conclusion
Disruptive technology is rapidly changing the landscape for manufacturers everywhere. AI Forecasting is just one of the many HubSpot tools designed to bring a whole new level of efficiency and productivity to your organization. Whether or not you decide to become an early adopter of AI-driven tech, it’s worth keeping an eye on HubSpot Forecasting as it evolves.
