From enquiry data to a practical revenue forecast
More than three years of commercial data were tested to determine whether enquiry activity could provide an earlier indication of future revenue.
Within a selected business stream, the initial analysis identified a Pearson correlation of approximately 0.70 between enquiry activity and following-month turnover.
The relationship was then incorporated into a practical monthly forecasting process alongside order book, current intake and management judgement.
~0.70
Initial Pearson correlation
The relationship was specific to the business stream and period analysed and is not assumed to apply universally.