Revenue Forecasting Task

A Revenue Forecasting Task is a financial forecasting task that produces a revenue forecast.

• Context:
  • It can (typically) produce a Revenue Forecast.
  • It can (often) reference a Revenue Forecasting Model (ARR Snowball Model, Quota Capacity Model, Sales Cycle to New Bookings Model, and Bookings, Billings, and Collections Model).
  • ...
• Counter-Example(s):
  • Expense Forecasting.
• See: Cross Price Elasticity, Market Share, Market (Economics), Financial Forecast, Time-Series, Demand Forecasting, Production Budget.

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References

2023

• (Wikipedia, 2023) ⇒ https://en.wikipedia.org/wiki/Revenue_management#Forecasting Retrieved:2023-8-15.
  • Revenue management requires forecasting various elements such as demand, inventory availability, market share, and total market. Its performance depends critically on the quality of these forecasts. Forecasting is a critical task of revenue management and takes much time to develop, maintain, and implement; see Financial forecast.
    • Quantity-based forecasts, which use time-series models, booking curves, cancellation curves, etc., project future quantities of demand, such as reservations or products bought. See Demand forecasting and Production budget.
    • Price-based forecasts seek to forecast demand as a function of marketing variables, such as price or promotion. These involve building specialized forecasts such as market response models or cross price elasticity of demand estimates to predict customer behavior at certain price points.
  • By combining these forecasts with calculated price sensitivities and price ratios, a revenue management system can then quantify these benefits and develop price optimization strategies to maximize revenue.

2022

• https://www.mosaic.tech/post/revenue-forecasting
  • QUOTE: ... Revenue forecasting is the first step of any planning process in which you project future top-line growth with driver-based forecasting and assumptions that are most relevant to your business model. ...
  • Revenue forecasting is important because it provides a concrete overview of your company’s growth path and allows you to make relevant business decisions. Revenue equals customers, customers inform hiring and product development, new customers and renewals equate to cash flow, and cash is the lifeblood of any business. There are ripple effects of the revenue planning process that go beyond just projecting top-line momentum. Strong top-line planning also helps you:

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