The factors that determine or influence your sales forecast can be divided into two types- External Factors and Internal Factors
Competitive Changes: You competitor’s actions are meant to influence your sales and winning rates. If a company slashes its price, your reps have to discount more. Similarly, if the competitive company’s product goes out of business, you will see creased demand for your product.
Change in Market: You need to stay informed about your buyer’s customers to stay in the business.
Economic Conditions: when the economy is strong, buyers are more likely to invest in your business whereas, with weak economic conditions the sales cycle takes a bit longer time and level of scrutiny for every purchase.
Change in Product:Introducing a new product or a feature anticipated by everybody or introducing complementary products or services can greatly help your salespeople to increase their average deal sizes and win more business
Hiring and Firing Process:
Whenever a salesperson leaves your company either because they quit on it or is terminated, the revenue of your company is predicted to decrease until or unless you have a line of potential hiring positions.
Change in Policy: Adjusting your sales plan without adjusting your forecast can turn out to decrease your revenue.
Territory Shifts: It takes some time for reps to familiarise themselves and be a success and especially in a new territory it takes some time. That’s why you can expect your close rate to dip before picking up again. So don’t give up on them too soon.