Set an estimated probability against every deal stage to forecast expected sales based on the probability of deals in the pipeline.
How to set up weighted pipelines?
1) Open Admin Settings and click on Pipelines under CRM Customization.
2) Click on associated with a pipeline. This opens the pipeline and its various deal stages.
Note: You can also assign a rotting date for the pipeline while assigning probability for the stages. Know more about it here.
3) Assign deal stage probability for each deal stage and click . The probability is a percentage operator and operates on the total deal value of the stage. Users can change the probability of deals manually if required.
Note: When deal stage probability is edited, the new percentage will only be reflected on new deals. The percentage of existing deals will not change.
How to forecast sales based on these probabilities?
In any given deal stage, only a fraction of deals convert successfully. By factoring in this probability for every deal stage, revenue from individual stages can be estimated realistically.
For example, let’s consider a deal stage ‘Negotiation’. At this stage of the deal cycle, the probability of winning the deal is about 70%.
Now, let us consider that you have 6 deals in this stage with each carrying values of $3950, $3060, $1460, $1340, $1285, and $1190 respectively.
The total deal value from this stage is $12285.
However, the expected deal value from this stage will be calculated on the basis of the deal stage probability
(70%). Therefore, the expected revenue from this stage will be 70% of $12285= $8600