Forecast Accuracy

Forecast Accuracy measures how closely a sales team's revenue predictions align with actual closed results over the same period. It is calculated by comparing forecast figures submitted at the beginning of a period against the revenue actually recognized at the end. High forecast accuracy — consistently within 5-10% of actuals — is a mark of sales management maturity, indicating that pipeline data is reliable, deal stage criteria are meaningful, and sales managers apply consistent judgment. Low forecast accuracy signals structural problems: inflated pipeline counts, wishful stage classifications, or insufficient deal-level scrutiny during pipeline reviews. Improving forecast accuracy typically requires a combination of CRM data discipline and structured coaching on pipeline management.