Forecasts allows us to predict the sales form pipeline to the closed stage. In our previous article How to use Forecasting tool for mortgage firms in Salesforce – Mortgage Banking Technology | Origination Strategy Consulting (takefiveconsulting.com), we have covered an overview of Salesforce forecasting, Forecast categories, Forecast hierarchy and Forecast types. In this article we will provide a Step by step guide on creating and reviewing Forecasts for mortgage firms.
How to create a Forecast type
We can create multiple forecast types on the basis of Revenue, Loan Amount etc. Two or more forecast types can be active at the same time. Features of Forecast types are listed below.
- Forecast types specify the data source, revenue or quantity-based focus, measurement date, and hierarchy type for forecast aggregation (role-based or territory-based).
- If you use products, you can tailor your forecast to focus on product quantity.
- Each forecast type allows for fine-tuned filtering to cater to specific needs, such as distinguishing between New Business and Renewals.
- Forecast types offer customization and flexibility to suit different business models. For example, tech companies may forecast based on product categories and annual contract value, while manufacturing businesses might focus on a custom shipping date, and global sales organizations use regional data and territory hierarchy for forecasts.
- Salesforce provides a built-in forecast type setup wizard for easy configuration, and there’s a default forecast type based on the Opportunity object for measuring amounts based on the close date.
- You can define and activate multiple forecast types to provide various perspectives on your anticipated sales.
To create a Forecast type, follow the below steps.
- Navigate to Setup menu
- Type ‘Forecast Settings’ in the quickfind box
- Click ‘Create a Forecast Type’ under ‘Available Forecast Types’.
- Under Pick an object, select ‘Loan’.
Now specify the measure upon which a specific forecast has to be relied upon.
- Data type will determine the date fields which are used in Forecast calculations.
Choose the grouping strategy to group your Sales forecasts.
We can optionally add filters to include ‘Loans’ of only specific stages to include in the Forecasts.
Review the created Forecast type.
Select the fields to be displayed on the Loans data below the Forecasts summary.
Click on the drop down arrow on the right of the Forecast type and activate the forecast type.
Forecasts Tab
- The Forecasts tab serves as the focal point for assessing and refining sales projections across various forecast periods.
- Below example demonstrates forecasting conducted on a quarterly basis, employing a forecast type that aggregates amount from loans.
- The standard forecast categories and the cumulative rollups option is selected for viewing totals.
- In the Forecast Summary, rows display the hierarchical flow of forecast values.
- The summary includes forecasts of team. Each column in the summary reflects forecast totals for loans within specific forecast categories.
- Utilizing cumulative views means that the totals in each category encompass both the cumulative amount of that category’s total and any subsequent categories.
By reviewing the forecast data, one can identify individuals requiring support to close loans. Clicking on a forecast number triggers an update in the Loans list below the summary, revealing the loans contributing to that total.
We have covered the Step by step guide on creating and reviewing Forecasts for mortgage firms. To learn more about Sales Forecasting click What is sales forecasting and how to use it – Salesforce IN
Take Five Consulting is a technology company, based in Virginia U.S., that specializes in the Mortgage Banking vertical especially LOS implementation and application development. Take Five Consulting creates and implement mortgage technology and software specifically for Mortgage Industry.
