The closeness of a revenue forecast to actual closed revenue for a period — the most visible output of pipeline quality, qualification discipline, and management rigour.
Also known as:
Forecast Call, Sales Forecast, Revenue Forecast
Forecast accuracy is the closeness of the projected revenue number to actual closed revenue for a given period — typically measured as a percentage variance. A forecast accurate to ±10% is considered strong in most B2B sales environments. A forecast that misses by 30% or more repeatedly signals a system problem, not a prediction problem.
Most B2B forecasts are unreliable because they are built on rep confidence rather than buyer evidence. When close dates and forecast categories are set based on how the seller feels about the deal — rather than what the buyer has confirmed, agreed, or done — the forecast is opinion. A committed deal that has no identified economic buyer, no agreed next step, and no paper process mapped is not committed. It is hopeful.
Forecast accuracy improves when two things change: the CRM captures buyer evidence (not seller activity), and the management cadence inspects that evidence on a regular basis. Structured deal reviews, mandatory MEDDPICC fields, and a clear definition of what 'commit' means create a common language that makes the forecast defensible. The goal is a forecast that the board can trust — not because the quarter always lands exactly, but because it lands within a predictable range and surprises are surfaced early enough to act on.
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