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Forecastr Features: Explained!
Optimize Metric Value Assumptions
Optimize Metric Value Assumptions
Kelvin Hudson avatar
Written by Kelvin Hudson
Updated over a week ago

Video Highlights:

What does this feature do?

The optimize metric value assumption allows an input metric’s value to increase or decrease each month within the financial model at an even, linear rate that you until the value reaches specified target value that you are in control of.

Why should I care?

Setting long term targets for input metrics is a very common practice in financial modeling. For example, if you plan to initially have a churn rate of 20% at the start of your business but have a defensible argument that you can reduce churn in 3 years to just 10% then capturing this behavior accurately will positively affect your expected revenue/ projections.

Where can I find it?

The optimize metric value assumption is able to be added to any input metric present within any section of the assumptions page of the financial model.

How should I use it?

Use optimize metric value to change the initial value of an input metric to a target value in equal increments. If a long-term target for an input metric’s value can be identified and the progression towards that target is expected to be smooth and consistent, you would use an “optimize metric value” assumption to achieve that change. A few common examples of items that frequently benefit from this logic are marketing budgets, inbound leads, or churn rates.

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