How to Calculate Forecast Coverage
Forecast coverage measures your weighted forecast, relative to your quota for a given period of time. To measure forecast coverage, you take your forecast for a period, and divide by your quota for that same time period.
For example, if a rep is forecasting $120,000 for Q2 and their quota for Q2 is $125,000, then their forecast coverage is $120,000 / $125,000 = 96%. This rep is projecting to close 96% of their quota.
To measure forecast coverage with Salesforce data,
start by multiplying the value of each opportunity by the historical win rate of opps that have reached the stage that it's in. That gives you the weighted forecast for each opportunity. Then, add the weighted forecast amount for each opp, as long as it has a close date in the period you're measuring. This gives you your total forecasted amount for the period. Then, divide your total forecasted amount, by the quota for that same period.
To measure forecast coverage with HubSpot CRM data,
start by multiplying the value of each deal by the historical win rate of deals that have reached the stage that it's in. That gives you the weighted forecast for each deal. Then, add the weighted forecast amount for each deal, as long as it has a close date in the period you're measuring. This gives you your total forecasted amount for the period. Then, divide your total forecasted amount, by the quota for that same period.
Rekener can calculate forecast coverage automatically,
and can break it down by sales rep, sales team, department, or any other breakdown. Check out our Sales Rep Scorecard app to see how Rekener can track forecast coverage by sales rep automatically.
Rekener's Sales Rep Scorecards base their forecasting information on your historical close rates by stage. Rekener automatically calculates the conversion rates of Salesforce opportunities and HubSpot deals that have made it to each stage, and can dynamically apply these conversion rates against your open opportunities.
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Greg is COO and Co-Founder at Rekener. Greg’s entire career has been focused on using BizOps to grow recurring revenue businesses. Before joining Rekener, he served as VP of Operations at ZeroTurnaround, where he built its BizOps practice and team. He did the same for the AVOKE call center analytics business, a SaaS company within BBN Technologies. He got his start in BizOps for recurring revenue businesses while at AppNeta.
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