How is sales forecasting accuracy actually measured?
The useful accuracy picture is a composite of five metrics, not one percentage. MAPE (mean absolute percentage error) measures the typical gap between forecast and actual. Bias keeps the sign of the gap so systematic over-commit or under-commit surfaces. Hit rate measures the percentage of forecasts that land inside a tolerance band (typically plus or minus 5 percent for commit). Drift tracks how the number moved across the quarter so a wobbly commit that happened to land is not scored the same as a stable commit. Method divergence tracks how much the methods disagree so the team sees whether the forecast is a converged signal or a lucky coincidence. Strkr renders all five on the variance report at the team, rep, segment, product, and method level, on a rolling four-quarter window.