Building a revenue forecast from drivers

Every product raised its price by five per cent and the average price rose by one point eight. Nobody discounted anything. A growth rate hides that entirely, and a driver tree shows you exactly where it went.

₹499/- ₹0

Offer ends in 5 days

1,000 seats total 253 left

747 already enrolled

6 things you will be able to do

10 units, 60 minutes. Every one of them ends with something you can do.

01 Find the unit you actually sellBuild a driver tree that multiplies back to the revenue already reported. If it does not tie, it is not a tree.
02 Watch a nudge travelA five per cent change at the bottom of a three level tree, and what reaches the top.
03 See mix move without anyone decidingEvery price rises and the average price rises less. Learn where the gap went.
04 Move where volume landsHold the totals still, shift the extra volume between products, and watch revenue change.
05 Split volume, price and mixThree effects, sized so they add back to the total exactly rather than approximately.
06 Mark the numbers that are yoursSeparate what was disclosed from what you assumed, so the forecast can be argued with.

What changes after this course

You stop applying a growth rate and start forecasting what the business sells, split into volume, price and mix that add back exactly.

A driver tree that multiplies back to the revenue already reported

One year forecast forward from named driver assumptions

The change split into volume, price and mix effects that add back to the total

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