A business organisation needs to conduct proper forecasting of product sales and that too based upon consumer behaviour because it is important from a business perspective and the organisation needs to understand what should be their approach towards success in order to be successful in the future as well as in the present. In order for a business organisation to be successful in the future as well as in the present, the organisation must conduct proper forecasting of product sales. It is difficult to predict the behaviour of consumers and base forecasting on that information, but doing so is necessary in order to be prepared for the future and the opportunities it will present for business. The following are the various methods of forecasting:
1. The statistical or data-driven method - Big data helps retailers and business organisations understand the trend by using information from a variety of sources, such as credit card purchases and digital footprints created virtually. There have been numerous instances in which this has been utilised, and it has been of assistance in developing accurate sales forecasting.
2. The Survey Method - This is one of the most popular and common methods of understanding the demand, but it is effective generally for short terms by collecting data from surveys conducted within individuals or potential customers who can actually make the process helpful. While this is one of the most popular and common methods of understanding the demand, it is also one of the most expensive methods.