What is Sales Forecasting and Why Do Businesses in the AI Era Need It?

When Jensen Huang, the AI chip mogul of Nvidia, says, “You need to find early indicators that can predict the future of your business,” it makes us think of a question that many B2B business owners ask themselves every month: “Will sales reach the target next month?” If the answer is “I’m not sure,” then you need accurate sales forecasting to drive your business in the AI era.

But what exactly is sales forecasting? And why are old tools like Excel no longer sufficient in an era where Revenue Automation AI is changing the competitive landscape?

What is Sales Forecasting? The Basics of Sales Forecasting

Sales forecasting, or “การพยากรณ์ยอดขาย,” is the process of using historical sales data, customer behavior, and business factors to predict future revenue, differing from traditional guessing or estimation methods.

From my 20 years of experience working with Thai B2B businesses, I have found that effective sales forecasting requires:

• Accurate and complete sales history data
• Statistical Analysis
• Tools that are appropriate for the size of the business.
• Continuous Model Improvement

It’s like weather forecasting. We don’t guess whether it will rain tomorrow; we use data on humidity, wind speed, and temperature to calculate the probability.

The difference between sales forecasting and revenue prediction

Many people often misunderstand that sales forecasting and revenue prediction are the same thing. However, in reality:

• Sales Forecasting = Predicting Future Sales Volume
• Revenue Prediction = Total revenue forecast from all channels
• AI Sales Automation is the use of AI to drive automated sales processes.

Why AI Sales Prediction is Important for Thai B2B Businesses

The problem with waiting for actual sales figures.

Many businesses still believe that reviewing sales reports at the end of the month is sufficient. However, this is akin to driving by only looking in the rearview mirror. You know where you’ve been, but you don’t know if there are any potholes ahead.

An example from a Wisible customer: A chemical sales business with customers across the country. At the end of March, he reviewed the report and found that sales had decreased by 20%.

But it was too late because the cause stemmed from three major customers who began reducing their orders since the beginning of February. If there had been good predictive sales analytics, they should have seen warning signals as early as the first week of February.

Benefits of Accurate Sales Forecasting

According to a study by the Harvard Business Review, businesses that use systematic sales forecasting tend to grow 10-15% faster than their competitors.

1. Accurately plan your finances Know in advance how much income you will have next month, plan your salary payments, rent, and expenses with confidence.

2. Manage inventory efficiently No need to store excess products or run out of stock when customers need them

3. Adjust sales strategies in a timely manner When it becomes apparent that sales will not meet the target, promotions can be launched or sales efforts increased in a timely manner.

4. Build confidence among shareholders and investors. Demonstrate that the business is well-planned and controlled.

Traditional Sales Forecasting Methods vs. Sales Forecasting Software in Thailand

Traditional Method: Excel + Intuition

Many Thai businesses still use the method of multiplying last year’s sales figures by a growth percentage or having each salesperson estimate when deals in their pipeline will close.

The problem with this method is:

• Relying on memory and instinct is risky because they can be easily mistaken.
• Unable to analyze complex factors such as seasonality, the economy, and customer behavior.
• It takes a lot of time to gather information from many people.
• It does not update in real time, so the information is always outdated.

Sales Forecasting Software ThailandNew Era

Currently, there are several sales forecasting software programs specifically designed for the Thai market, particularly CRM systems with Sales Pipeline features that can:

• Connect to the ERP system that your business is already using.
• Real-time Data Analysis
• Supports the Thai language and understands Thai market behavior.
• The price is suitable for SMEs and requires no investment in the hundreds of thousands.

Revenue Automation AI: The Future of Sales Forecasting That Does More Than Ever Before

This is where the game changed. When Andrew Ng, the world’s AI guru, said, “The time has come to unleash the power of AI for every business,” he was referring to using AI to assist with complex tasks like sales forecasting.

What is Revenue Automation AI?

Revenue Automation AI is an intelligent system that not only predicts sales, but also helps generate revenue automatically by:

1. Predictive Analytics with Deep Insight Not just looking at past sales, but analyzing customer behavior, economy, seasonality, competition, and over a hundred other variables.

2. Automated Customer Intelligence Know when each customer has the opportunity to make a repeat purchase, what products they are interested in, at what price, and the most effective way to contact them.

3. Early Warning System Notify when major customers show signs of reducing orders or are likely to switch to competitors, based on principles studied by McKinsey & Company in AI transformation in the sales sector.

Example of Real Revenue Automation AI Work

Imagine a medical equipment business with customers nationwide, such as Wisible’s clients in the medical industry.

Original method: Wait for the hospital to call and place an order when supplies are running low, or have the sales representative call to check every month.

Revenue Automation AI Model

• The system analyzed that Hospital A normally orders medical consumables every 45 days.
• After 35 days, the system sends a notification to the sales representative to contact the customer.
• Include information about previous purchases, including what was bought, the prices, and suggestions for additional products.
• Results: Sales increased by 15% due to not missing sales opportunities and being able to sell more.

Human-in-the-Loop: When AI Works with Humans

But AI isn’t a robot that works 100% in place of humans like in sci-fi movies. It operates in a “Human-in-the-Loop” or “Human-in-the-loop” model.

AI says: Customer B has an 85% chance of placing an order. Human adds: But just heard that he got his budget cut, reduced to 60%. AI learns: Record this information to adjust the model for better accuracy.

This is why Wisible’s Revenue Automation AI provides more than just raw numbers. It offers tools that help sales teams work more effectively, guided by data and based on efficient Customer Relationship Management principles.

How to Create Accurate Sales Forecasting: A Beginner’s Guide

Step 1: Collect accurate data.

Before conducting sales forecasting, you must first have good data, which includes:

• Customer purchase history (date, product, quantity, price)
• Communication Information (Email, Phone, LINE, Chat)
• Customer Information (Business Type, Size, Location)
• Competition Information (Market Prices, Competitor Promotions)

Step 2: Select the appropriate sales forecasting software.

For Thai SMEs, it is advisable to select sales forecasting software with the following features:

• Easy to use —no need to be a Data Scientist to do it.
• Connects to existing systems (Line, email, ERP).
• Reasonable pricing with no need for a six-figure investment from the start.
• Thai language support has a team that provides care within the country.

Step 3: Test and refine the model.

Start with data from the past 3-6 months to assess the system’s predictive accuracy. Then, gradually refine the model to enhance its precision, following the guidelines for improving CRM system performance.

The Future of Sales Forecasting in Thailand

Challenges Faced by Thai SMEs

From my experience trying Google’s Vertex AI to build my own ML model, it took a full day during the Songkran holiday and cost about 1,000 baht for just 1,000 lines of data.

If everyone does it on their own, the costs will be very high, including infrastructure costs, data costs, and labor costs for data preparation. Plus, it takes a lot of time, especially for those without a technical background.

The “Unite the Power” Approach for SMEs

However, if we combine them all at once, the price could be much more attractive, similar to sharing an Uber instead of everyone driving their own car.

This is why SaaS (Software as a Service) Revenue Automation AI is the right solution for Thai SMEs.

You get enterprise-level AI benefits but only pay for what you use, just like paying for electricity based on actual usage—no need to buy your own generator.

Tips for Choosing Sales Forecasting Software in Thailand

When selecting sales forecasting software for Thai businesses, consider the following:

Compatibility with Thai Businesses

• Fully supports the Thai language.
• Understanding Thai Business Culture
• There is a support team in the country.

AI and Automation Capabilities

• Real-time predictive analytics
• Can integrate with Line, Facebook, email
• There is an early warning system for at-risk customers.

ROI and Cost-effectiveness

• The price is suitable for an SME budget.
• Calculate ROI clearly.
• There are no hidden fees.

Stepping into the Future of Sales Forecasting

Sales forecasting is no longer just a tool for large companies. Thanks to advancements in AI and revenue automation technology, Thai SMEs can now access world-class tools at affordable prices.

However, the most important thing is to start by collecting accurate data, selecting the appropriate tools, and maintaining an open mind to learn new ways of doing business.

There is still a missing link between Thai SMEs and the power of AI, waiting for someone to bridge these two worlds and complete the connection. This could be the starting point for a revolution in how businesses operate in Thailand.

In a world where AI can predict customer purchases, the question is no longer “Is it accurate?” but rather, “How can we fully leverage it?”