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Sales Pipeline Prediction - Predicting a Pipeline using Time Series and Dummy Variable Regression Models

Sales pipeline metaphorically is a pipe through which the opportunities pass on the way to becoming a sale. As the opportunity progresses through the pipe the likelihood of becoming a sale increases. Predicting the sales pipeline is very critical. Accurately predicting the sales pipeline is essential in planning future costs and capacity requirements. Since the sales pipeline is in itself a subjective prediction made by sales reps, predicting the pipeline essentially becomes a problem of predicting a prediction. Most managers do this by solely depending on their sales representatives perception on which business will close. A prediction model was developed using time series modeling to predict the next quarter sales pipeline. The uniqueness of the model is that, it captures two different types of co-existing seasonlaities. A predictive model was created which is refreshed weekly with actual pipeline numbers and is successfully deployed within business.