Blog Post

Why Sales Forecasts Are Unreliable and How to Fix Them

October 24, 2025

For most revenue leaders, sales forecasts should provide clarity on future performance. Yet, quarter after quarter, forecasts fall short of reality. Gartner research suggests that fewer than 50% of sales leaders have confidence in their forecast accuracy. Inconsistent projections don’t just frustrate leadership - they disrupt planning, budgeting, and growth.

So, why are sales forecasts so unreliable? The reasons often lie in outdated methods, scattered data, and the use of incomplete metrics. Let’s unpack the most common challenges and explore how modern revenue teams are improving forecast accuracy.

Over-Reliance on Gut Instinct

Many organizations still rely on sales reps to submit forecasts based on “deal feel.” While intuition can highlight red flags, it’s highly subjective. Two reps may evaluate identical opportunities very differently, leading to inconsistent results. Without objective data to validate these forecasts, reliability suffers.

Data Fragmentation Across Systems

Revenue-critical information is often spread across multiple tools — CRMs, spreadsheets, finance systems, and marketing platforms. This siloed approach makes it hard to build a holistic picture of the pipeline. When leaders can’t see all the moving parts in one place, they’re essentially forecasting with blind spots.

Dependence on Lagging Indicators

Traditional forecasts often lean heavily on historical conversion rates or last quarter’s results. These lagging indicators are helpful for trend analysis, but they fail to capture emerging risks or market changes in real time. Forecasts that ignore leading indicators, like deal velocity and repeated push outs  miss early warning signs of slippage.

Limited Visibility Into Deal Health

A deal that looks “healthy” in CRM may actually be at risk. Perhaps the buying committee hasn’t engaged in weeks, or the opportunity is stuck at the same stage longer than average, or been pushed out several times across quarters. Without visibility into these signals, forecasts become optimistic assumptions rather than data-backed predictions.

Lack of Alignment Across Teams

Marketing, sales, finance, and customer success often operate with different metrics and definitions of success. Without cross-functional alignment, forecast assumptions become fragmented, and leaders struggle to agree on “one number” the business can rely on.

What Reliable Forecasting Looks Like

Improving forecast accuracy doesn’t mean adding more spreadsheets or holding longer forecast calls. High-performing organizations are adopting new approaches that focus on clarity, consistency, and being proactive:

  • Unified GTM Data: Centralizing information across sales, marketing, finance, and customer success into a single source of truth.
  • Leading Indicators: Incorporating deal velocity, steadiness of close dates, and historical pipeline progression by stage by time of quarter into forecasting models.
  • Risk Detection: Identifying stalled deals or shrinking opportunity size before it impacts the quarter.
  • Predictive Models: Using advanced analytics and AI to generate forecasts that account for patterns that are impossible for simplistic stage weighted models to pick up.
  • Cross-Functional Alignment: Ensuring sales, finance, and operations work from the same data set and forecast methodology.


The Bigger Picture

Reliable forecasts do more than help you “hit the number.” They strengthen board confidence, enable smarter resource allocation, and give GTM leaders the agility to respond quickly to market shifts. In unpredictable markets, forecast accuracy becomes a competitive advantage.

From Guesswork to Confidence

While unreliable forecasts have long been seen as “just the way it is,” they don’t have to be. Modern tools and methodologies now make it possible to build forecasts that reflect reality more closely, provide early warnings, and guide more effective decisions.

If you’re exploring how to make your forecasts more accurate, start by asking:

  • Do we have a single source of truth for GTM data?
  • Are we incorporating both lagging and leading indicators?
  • Can we identify at-risk deals early enough to intervene?
  • Are all GTM teams aligned around the same forecast number?

Answering these questions is the first step toward shifting from unreliable projections to forecasts you can trust.

Conclusion: Turning Forecasting Into a Strategic Advantage

Unreliable sales forecasts aren’t just an annoyance,  they can derail planning, misallocate resources, and erode leadership confidence. The reasons are clear: over-reliance on intuition, fragmented data, lagging indicators, and lack of visibility into deal health. The good news is that forecasting doesn’t have to remain a guessing game. By unifying revenue data, leveraging leading indicators, and incorporating predictive analytics, revenue leaders can move from reactive reporting to proactive planning.

In today’s competitive environment, accurate forecasting is more than a metric,  it’s a strategic advantage. Organizations that get it right build trust with investors, align GTM teams, and make faster, smarter decisions.

At SkyGeni, we help revenue leaders achieve this by centralizing data, identifying risk signals early, and delivering predictive insights that transform forecasting into a reliable growth engine. Ready to close the forecasting gap? Book a demo and see how SkyGeni can help your team forecast with confidence.

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