Written by: Tash Evans
Why Forecast through Hook?
One of the benefits of leveraging Hook is that it gives you the ability to create a data-driven forecast multiple quarters out. Having this forecast more than one quarter out allows you to plan your business more strategically in terms of how you’re going to hit target, as well as being proactive in getting ahead of churn.
Leaders often leverage Hook in two ways for forecasting:
To create a top-down forecast for future quarters and get a sense of how far away from target they are.
To compare to the bottoms-up forecast their reps have created for current and next quarter, to spot gaps.
How to Build your Forecast
In Hook, every Engagement Level has a corresponding renewal rate percentage that is unique to your business and your health score that we’ve built for you.
This allows you to apply that renewal rate to the ARR in each Engagement Level to create your forecast.
You can leverage the Customer Distribution panel to create a forecast for one quarter in particular or for all quarters.
How to Action your Forecast
Once you know your forecast for your quarter or the financial year, you have all you need to compare your forecast to your target/financial plan and calculate the “gap” between the two.
The easiest way to view this “gap” is in dollar value compared to a percentage, so you know exactly how much you have to find to hit target.
From there you can start to build a data-driven plan to plug the gap.