topic Re: Future revenue forecasting in Dashboards & Reporting

Future revenue forecasting

Luders — Tue, 09 Mar 2021 14:21:02 GMT

Hi,

I work as a sales & marketing manager in a development and production setting. From a revenue perspective we have A) revenue from development activities and B) revenue from regular production (typically after A has been completed).

I have an urgent need to forecast the (potential) revenue YoY to be expected of the existing deals combined, both won and still in progress. The revenue is a combination of amount of product (#) x price per product (EUR). The amount typically increases YoY and price typically decreases. Both the # and € are different each year and the multiple is the expected revenue. The forecasting is rather straight forward in excel, but do have a strong preference to report this in Hubspot including best and worst case scenario. Basically I want to make a distinction between the direct deal value (A - Engineering) and recurring revenue YoY to be expected (B). A could be relatively high vs the recurring revenue for the same article and visa versa. I want to make a distinction.

Who can help me further?

Re: Future revenue forecasting

Josh — Tue, 09 Mar 2021 15:28:54 GMT

Hi @Luders,

Is the upcoming year's production stored somewhere within HubSpot, for example, another pipeline? Or are you looking to project next year's revenue based on the original deal labeled as active MRR?

Josh

Re: Future revenue forecasting

Luders — Tue, 09 Mar 2021 15:31:29 GMT

Hi Josh,

The data is not stored yet. How would you recommend to store it?

The method is still open to choose. I have not filled the data yet since I prefer to make the design first. Especially since there is a calculation involved.

Re: Future revenue forecasting

Josh — Tue, 09 Mar 2021 15:42:38 GMT

@Luders

From my limited understanding of the situation, I would probably want to track that in a separate pipeline because of the change in values. If YoY there were no changes in number of value, I would maybe go a different approach. As far as the best case/worst case scenario is this on a client by client basis, or the pipeline overall?

Re: Future revenue forecasting

Luders — Tue, 09 Mar 2021 16:11:52 GMT

Maybe this clarifies it further?

How would you store the data in a pipeline (#,€) and use the multiple for forecasting (including graphical display) over time?

Re: Future revenue forecasting

Josh — Tue, 09 Mar 2021 16:37:20 GMT

Hi @Luders,

OK, so a bit more complicated than I expected. Have you considered a series of calculated properties?

1-year forecast best
1-year forecast worst
2-year forecast best
2-year forecast worst

On Enterprise you have up to 200 calculated properties, so logistically you'd have enough. The are likely some other variables in play here though...

Are the projections changes the same for every client?
Is the year-over-year change always consistent?
What are the variances of best case and worst case?

If there is some standardization, you MIGHT be able to accomplish what you are looking for with only the original deal and calculated properties based on original deal values. Probably not something easily solved on the discussion board, but I hope I could at least point you in the right direction.

Anyone else have other ideas? @karstenkoehler, @Phil_Vallender?

Josh