Forecasted Number of Customers
Date created: Oct 12, 2022 • Last updated: Oct 12, 2022
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.
Forecasted Number of Customers Formula
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.
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How to visualize Forecasted Number of Customers?
When visualizing your forecast, the best chart to use is a line chart. Forecasted Number of Customers essentially shows you your predicted customer growth, so a line chart will display the upward projection of customer growth over time. Take a look at the example:
Forecasted Number of Customers visualization example
Forecasted Number of Customers
Line Chart
Forecasted Number of Customers
Chart
Measuring Forecasted Number of CustomersMore about Forecasted Number of Customers
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.
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