A Comparison of the Forecasting Features in Zoho CRM and Salesforce

Forecasting Overview

• Zoho CRM: Zoho’s forecasting feature helps track and predict sales performance, providing insights into both short-term and long-term sales goals. Forecasting can be done based on Role Hierarchy or Territory Hierarchy and allows managers to set targets for roles, sub-roles, and individual users.
• Salesforce: Salesforce also offers advanced forecasting tools to predict future sales and revenue based on past data, trends, and pipeline details. Salesforce’s forecasts can be customized based on roles, territories, and other criteria, allowing users to track performance at various organizational levels.

Availability & Permissions

• Zoho CRM:
  • Access: Available to users with appropriate permissions (typically Role Managers & Administrators).
  • Permissions: Users must have access to the Forecasts tab and specific roles/territories must be set up before creating forecasts.
• Salesforce:
  • Access: Forecasts in Salesforce can be configured for users based on roles and territories.
  • Permissions: Admins can configure forecast settings, and the forecast visibility depends on user roles and permissions.

Creating and Configuring Forecasts

• Zoho CRM:
  • Users must configure forecast settings first, including defining the target period (monthly or quarterly), the fiscal year start month, and the target field.
  • Forecasts can be created for specific periods (monthly/quarterly), and users can set targets for individual roles, territories, or users in those roles.
  • Users can drill down to create specific targets for sub-roles and their users.
• Salesforce:
  • Forecasts can be created based on opportunities and the sales pipeline.
  • Admins configure fiscal years and set up forecast categories like Best Case, Committed, and Pipeline.
  • Users can also set individual or team targets and track how the sales pipeline contributes to meeting those targets.

Forecast Hierarchy

• Zoho CRM:
  • Forecasts are based on either Role Hierarchy or Territory Hierarchy. The top-level role/territory sets the overall target, and forecasts can be created for each sub-role or sub-territory.
  • A manager can be assigned to set targets for the sub-roles or users.
• Salesforce:
  • Forecasts are primarily based on user roles and can be managed based on Role Hierarchy. Each role can have specific forecast targets, and Salesforce allows for tracking at the individual or role level.
  • Salesforce also provides options for hierarchical forecasting, where managers set the forecast for their subordinates.

Tracking Performance

• Zoho CRM:
  • The performance is tracked using Target Achieved, Pipeline Deals, Achieved %, Shortage in Pipeline, and Star Performers metrics. Users are notified of any Target Mismatch in their forecasts.
  • You can track deals associated with each month’s forecast, giving visibility into the sales pipeline and historical sales performance.
• Salesforce:
  • Salesforce forecasts include Closed Opportunities, Pipeline Opportunities, and Forecast Accuracy. Performance is measured using Forecast Category, which shows the percentage of deals closed or expected to close.
  • The system also tracks the overall sales pipeline and alerts users about discrepancies or mismatches in forecasted amounts.

Customizability

• Zoho CRM:
  • Forecasts can be customized to some extent, with users able to set specific fields to determine forecast targets. However, the fields within the forecast module itself cannot be customized.
  • Managers can drill down to set targets for sub-roles or specific users.

• Salesforce:
  • Salesforce allows extensive customization of forecasts, including custom forecasting models, forecast categories, and user permissions.
  • Forecasts are integrated with other Salesforce features like Sales Cloud and Opportunity Management, allowing for greater flexibility in setting up and tracking forecasts.

Forecast History and Reporting

• Zoho CRM:
  • Forecast history (changes made to forecasts) is not maintained in the new forecast model. However, users can track the forecast performance by viewing closed deals, pipeline deals, and other related metrics.
  • You can generate detailed reports on forecast performance based on roles or territories.
• Salesforce:
  • Salesforce maintains a detailed forecast history, showing changes made to forecasts over time, and users can generate custom reports on forecast performance across various dimensions (roles, territories, etc.).

Notifications and Alerts

• Zoho CRM:
  • Zoho CRM alerts users about mismatches in forecast targets and provides notifications for discrepancies between individual and overall forecasts.
  • Users can receive notifications when the sales pipeline is not on track to meet the forecasted targets.
• Salesforce:
  • Salesforce sends alerts and notifications when there are discrepancies in forecast amounts or when pipeline data suggests underperformance.

Forecast Calculation Methods

• Zoho CRM:
  • Zoho offers a Compute option to calculate the status of a forecast, showing metrics like target achieved, pipeline count, and shortages.
  • Users can perform calculations on an individual role/territory basis or for the entire hierarchy using ComputeAll.
• Salesforce:
  • Salesforce uses Forecast Categories to define the status of each opportunity and calculate target achievement percentages. The platform allows detailed tracking of sales stages and integrates with the sales pipeline.

Setting Targets

• Zoho CRM:

In Zoho CRM, you can set sales targets at multiple levels, including roles, sub-roles, and individual users. The process involves configuring your sales forecast settings, which include defining:

1. Roles and Territories: Forecasts can be based on either the role hierarchy or the territory hierarchy.
2. Target Period: You can set the target period for monthly or quarterly forecasts.
3. Sales Targets: Targets can be set for:
   • Roles/Territories: Set targets for roles (e.g., sales executives, managers) or territories.
   • Managers: You can set specific targets for role managers and territory managers.
   • Individual Users: Targets can be set for each individual user within a role or territory.
4. Drill-Down Functionality: Once the forecast is created for a specific role or territory, you can drill down into sub-roles or users to set specific targets.
5. Forecast Creation: When creating forecasts, you select the year, quarter/month, and input the target amount for the role or territory.
6. Forecast Adjustments: Targets can be adjusted based on changes in the role or territory hierarchy.

Steps in Zoho CRM:

• Go to the Forecasts module and click on Create Forecast.
• Choose the desired Year, Month/Quarter, and specify the Target for each role/territory.
• Add targets for sub-hierarchies (roles or territories) and users.

• Salesforce:

Salesforce’s approach to setting sales targets is highly customizable and works around sales forecasts tied to the organization’s pipeline. Here are the main elements for setting targets:

1. Role-Based Forecasting: In Salesforce, you can set sales targets for individual roles. These are often aligned with quotas, which are based on user roles.
2. Quota Settings: Salesforce allows admins to set sales quotas for each user, which define the sales target that must be achieved.
3. Forecast Types: There are multiple forecasting types, including:
   • Opportunity Forecasting: Based on opportunities in the sales pipeline.
   • Custom Forecasting: Specific to your organization’s needs, based on customized fields.
4. Collaborative Forecasts: In Salesforce, users with the appropriate permissions can set and adjust targets. Forecasts are collaborative, allowing managers to adjust targets based on pipeline progress or historical performance.
5. Quota Assignment: Salesforce allows for setting quotas at individual, team, or group levels, ensuring that users are working toward specific targets.
6. Team/Manager Targeting: Managers can also set targets for their teams, often linked to territory or role hierarchies.
7. Target Reporting: Salesforce provides reporting features that allow tracking the progress of these targets, and adjustments can be made as necessary based on performance and changes.

Steps in Salesforce:

• Admin Setup: Admins can go to Setup, select Forecasts, and then assign a Quota to users.
• Assigning Quotas: From the Forecasts module, quotas can be assigned based on roles or individual users.
• Forecast Management: You can manage forecasts from within the system by selecting opportunities and analyzing performance against targets.

Which is Better for You?

Choosing between Zoho CRM and Salesforce for sales forecasting largely depends on your company’s size, budget, and specific needs:

• Zoho CRM is perfect for small to mid-sized businesses or startups that need a powerful, easy-to-use, and affordable CRM with strong sales forecasting capabilities. Zoho CRM’s intuitive interface and customization options make it a great choice for businesses looking for simplicity and flexibility.
• Salesforce, on the other hand, is ideal for larger enterprises with complex sales processes or businesses that require in-depth, AI-powered forecasting. While the pricing may be higher, Salesforce’s extensive integration options, along with its advanced features like AI-based predictions, make it an excellent choice for large teams and organizations with more sophisticated sales forecasting needs.

Key Features Comparison: Zoho CRM vs Salesforce Sales Forecasting

Feature	Zoho CRM	Salesforce
Forecasting Overview	Predicts sales performance based on role or territory hierarchies.	Forecasts based on opportunities, sales pipeline, and customizable categories.
Availability & Permissions	Accessible to users with appropriate permissions.	Configured by admins with user roles determining access.
Forecast Creation	Targets can be set for roles, sub-roles, territories, and users.	Users set targets based on sales pipeline, roles, and quotas.
Forecast Hierarchy	Based on Role or Territory Hierarchy.	Based on user roles, it allows hierarchical forecasting.
Tracking Performance	Tracks performance using target achieved %, pipeline deals, and star performers.	Tracks performance with forecast categories (Best Case, Committed, Pipeline) and sales pipeline.
Customizability	Limited customization, but can drill down to set targets for sub-roles.	Extensive customization with custom forecasting models, categories, and user permissions.
Forecast History & Reporting	Forecast performance is tracked, but history is not maintained.	Based on user roles, and allows hierarchical forecasting.
Notifications & Alerts	Alerts about mismatches in forecast targets and pipeline.	Alerts and notifications when discrepancies are detected in forecasts.
Forecast Calculation Methods	Detailed forecast history and customizable reports are available.	Forecast Categories track opportunity stages and calculate achievement percentages.
Target Setting	Targets can be set at multiple levels (role, sub-role, user).	Targets can be set for roles, individual users, or teams with quotas.
Best for	Small to mid-sized businesses, startups with simpler needs.	Large enterprises, complex sales processes, and businesses requiring deeper forecasting insights.

Conclusion

Both Zoho CRM and Salesforce offer robust forecasting features, but there are notable differences:

• Zoho CRM excels in hierarchical forecasting, particularly with its Territory and Role-based setups, making it useful for organizations with complex team structures.
• Salesforce, on the other hand, offers highly customizable forecasts, greater integration with other Salesforce tools, and extensive reporting options, making it suitable for businesses seeking more flexibility and deeper insights.

Your choice will depend on your organization’s needs, the level of customization required, and the complexity of your sales structure.