Forecasted Number of Customers
What is Forecasted Number of Customers?
Forecasted Number of Customers gives you the predicted number of customers your company will have over a given period of time. Though there are multiple ways to forecast customer count, the simplest calculation is to multiply your leads with your average close rate.Alternate names: Customer Growth
How to calculate Forecasted Number of Customers
Consider a scenario where your monthly close rate is about 60%. At the start of the month, you have 5,000 leads. By using the forecasting formula, you can predict that you will grow by roughly 3,000 new customers this month.
More about this metric
By periodically forecasting your customer growth, you stand to benefit from the ability to manage expenditures and resources. One of the simplest ways to forecast the number of new customers your business wins is by using your existing average close rate to estimate how many of your leads will convert to won customers. Keep in mind that forecasts, while never 100% accurate, can be fine-tuned to your context, resulting in a fairly reliable prediction of customer growth. You may want to add factors such as the number of trial registrations, website visits, count of existing customers, and average retention rate to arrive at a customized forecast for your business.
Metrics related to Forecasted Number of Customers
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