What is Forecast Accuracy?
Forecast Accuracy is a core concept in modern B2B revenue. Here is a clear, accurate definition, why it matters, and how Ardovo handles it.
Short answer
Forecast accuracy measures how close a sales forecast came to actual results, usually as the percentage difference between predicted and realized revenue. High accuracy means leadership can trust the number for planning. Tracking accuracy over time exposes systematic bias, such as reps who always sandbag or always overcommit.
Key takeaways
- Measures the gap between forecast and actual revenue.
- High accuracy makes the forecast a reliable planning tool.
- Reveals systematic bias by rep, team, or category.
- Improved by tracking and correcting over many periods.
Why it matters
A forecast is only useful if it is accurate. Measuring accuracy turns forecasting from guesswork into a discipline that gets better each period as bias is identified and corrected.
How Ardovo handles it
Ardovo records each period's forecast and compares it to actuals by rep and category, so patterns of over- or under-calling become visible. Rook uses that history to adjust confidence on current deals.
Frequently asked questions
What is a good forecast accuracy?
Mature teams often aim to land within 5 to 10 percent of forecast. What matters most is consistency and the absence of systematic bias, so leadership can plan confidently around the number.
How do you measure forecast bias?
Track whether forecasts consistently come in above or below actuals over many periods, and by whom. Reps who always beat their call may sandbag; those who always miss may inflate. Both distort planning.