But, how does AI forecast with HubSpot work?
The AI forecast tool, located in the Analyze tab in Forecast, uses previous closed won deals data and the dates on which the deals were closed, to make predictions on future sales. The dates on which the projections are based on are from the current period, so you know that the most relevant data is being utilised. Therefore, for the tool to work the best to help you in projections, it needs to make sure that accurate information in terms of deal amount and closed won date is inputted into HubSpot.
Tips for keeping accurate deals data:
- Automate your pipeline - Automate deals to go to the closed won stage when a quote is digitally signed
- Set up sequences for your Sales team with tasks - Set up task reminders for deals that are getting near to their close date that haven't signed yet
- Makes fields on your deals forms mandatory - Set the "Amount" property in your deals creation form to mandatory
The predictions will be given as a three-category range: Most Likely, Upper, and Lower, with the Most Likely category being the midpoint of where you will be likely to reach that month. It is important to note here that these are predictions, and should not be used exclusively when making business decisions.
How can you set up the AI forecast tool?
First and foremost, at this moment the tool is in beta. You will need to join the public beta, which is possible through the Product Updates section of your HubSpot account. In addition, you need to make sure you have at least two months of deals data already in HubSpot for the AI tool to work. This is important to note if you are just starting out in HubSpot and are looking to use the tool in assisting your projections and goal setting.
To enable the AI forecast feature, you can head to your Reporting & Data tab on the left sidebar, select Forecast and then the Analyze tab. Here you can turn on the AI forecasting tab. Confirm you would like to use the AI forecast tool by clicking "Yes", and you are set! The feature will need at least seven days to gather data in order to make predictions, so no need to worry when forecasts don't appear right away.
Over time, the Forecast Accuracy over time data table will populate. This table gives insight into the forecasts the AI forecast tool gave each month and compares this against the actual closed won deal results. Here, the forecast accuracy table helps to give valuable insights into how well the AI tool predicts your future deals over each month, and in one, two, and three-week intervals. The comparisons will be displayed in both the deal amounts, and percentage accuracy. This gives you additional context to consider when using the tool to make any business decisions.
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Pros of using the AI Forecast tool:
- Takes the work out of your hands
- Quick and easy to set up in your account
- Can be used to analyse all pipelines in total, as well as for individual pipelines
- The accuracy table gives a monthly record of forecasted vs. actual results, giving additional context to the forecasts
Considerations of the AI Forecast tool:
- These are forecasted estimates and are not to be used exclusively when making future business decisions
- Requires accurate, up-to-date sales data - check out our above tips!
- Requires a minimum of two months of previous sales data before giving projections
In other words..
The AI Forecast tool from HubSpot is an intelligent new feature that can help make your future target setting and predictions more accurate. Whilst we recommend that the tool should not be used as the main baseline for future business decisions, it is a useful tool to help track your sales progression and measure against your targets, every month. If you are looking for further advice on how to set up the AI forecast tool, or even your sales pipelines, feel free to reach out to us at Cuex to see how we can help you drive your business forward.
