Case Studies - Revenue Forecasting Models
Revenue Forecasting Models
Factored built a predictive model for sales hiring that boosted revenue 16% by forecasting rep performance and filtering low-yield candidates.
Key Takeaways:
Predictive Models for Profitable Hiring.
An insurance company was looking for strategies to boost their revenue and compensate for sales decreases after the pandemics. They were grappling with the challenge of optimizing their hiring process for sales representatives, aiming to focus on candidates who would generate higher revenue over time. They needed a predictive model to anticipate potential employee performance and aid in making more informed hiring decisions.
To Hire the Right Candidates.
The team developed a predictive model using Generalized Additive Models, data clustering, and various imputation techniques to forecast first-year sales and commissions of potential sales representatives, identifying those who could generate more revenue over time from the hiring process.
Driving 16% More Sales.
- Removed the bottom 30% of candidates.
- Maintained the same cost structure.