Revenue Forecast Error
Are you hitting your revenue targets consistently?
Revenue forecasting error tells if you underachieve or overachieve your forecasts. Since this metric accounts for predictable growth or decline in revenues, the metric is more sensitive in capturing negative or positive surprises than other revenue metrics.
Revenues are the lifeblood of any business. Thus tracking the success in meeting revenue forecasts is the easiest way to identify the health of the business. Ensuring that you keep on track with the sales targets should be at the top of the list of any organization. If revenues are falling behind the targets or are erratic, that is a cause for concern.