What metrics should you track to forecast demand for compact cars?

1 Historical sales

One of the most basic and reliable metrics to track is historical sales, which shows how many compact cars have been sold in the past and how they have changed over time. Historical sales can help you identify patterns, cycles, and seasonality in the demand for compact cars, as well as the impact of external events such as economic downturns, technological innovations, or policy changes. You can use historical sales data to project future demand based on past trends, or to compare your performance with your competitors and the industry average.

3 Customer satisfaction

Customer satisfaction is a metric that reflects how happy your customers are with your compact cars and how likely they are to buy from you again or recommend you to others. Customer satisfaction can help you understand the strengths and weaknesses of your product, as well as the needs and expectations of your target audience. You can measure customer satisfaction by using various methods such as surveys, reviews, ratings, feedback, or net promoter score (NPS), which is the percentage of customers who are promoters minus the percentage who are detractors.

5 Environmental factors

Environmental factors are external variables that influence the demand for compact cars, such as fuel prices, emission standards, climate change, or consumer awareness. Environmental factors can help you anticipate the opportunities and threats for your product, as well as the shifts in consumer preferences and behavior. You can track environmental factors by using various sources such as government reports, industry publications, media outlets, or social media platforms. You can also use scenario analysis or sensitivity analysis to estimate the impact of different environmental factors on your demand.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?