Methodology

Advanced Commercial Dynamics

A complete forecasting and performance system for e-commerce businesses. From revenue objective to ads budget, from weekly diagnostics to quarterly recalibration.

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The Problem

Why most e-commerce forecasts fail

They start from budget, not from the objective

The question is not "how much can I spend" but "how much do I want to achieve and what does it cost."

No cross-validation

The revenue objective never meets the actual cost per channel. The numbers are never verified against each other.

The forecast dies in January

It is done once and never touched again. No weekly feedback loop.

Efficiency is assumed, not measured

It is assumed that ads ratio will magically improve. With no concrete basis.

The System

How it works

A circular model with built-in validation. Top-down meets bottom-up. When they don't align, you know exactly what to adjust.

Revenue Objective

Set your annual target from admin sales, excluding VAT and returns.

Ads Ratio

Define what percentage of revenue goes to advertising. Realistic, based on historical data.

Budget Split

Calculate total ads budget and split between Google and Meta, adjusted monthly.

Traffic Calculation

Estimate required sessions using seasonal CR and AOV per month.

Cost per Channel

Apply sessions/clicks index and CPC to calculate actual cost.

Validation

Does calculated cost match the budget? If not, adjust CR, AOV, CPC, or channel split.

Weekly Diagnostics

Continuous monitoring, not guesswork

The weekly diagnostic framework identifies exactly where the chain breaks.

Compare

% revenue achieved vs % time elapsed vs % budget spent. See instantly if you're on track.

Diagnose

Follow the diagnostic tree. Did budget turn into traffic? Did traffic turn into revenue? Find exactly where the chain breaks.

Act

The diagnosis tells you what to fix — offer, bidding, CPC, landing page, or budget allocation. No guessing.

Feedback Loop

A living system that improves over time

Weekly

Fill in actuals, check deviation.

Monthly

Adjust CR, AOV, CPC, traffic split, sessions/clicks index, Admin vs GA4 ratio.

Quarterly

Review Ads Ratio — is the initial target achievable? Recalibrate revenue and growth.

Yearly

The forecast becomes the historical base for next year.

What You Get

What's included

Forecast Methodology

Complete PDF documentation of the forecasting system.

Excel Model

4 tabs: Forecast, Detailed Budget, Operational Summary, User Guide.

463 Interconnected Formulas

Color-coded inputs for easy customization and understanding.

Weekly Diagnostic Framework

Decision trees to identify exactly where performance breaks.

Seasonal CR & AOV Methodology

Estimation methodology for conversion rate and average order value by season.

Sessions/Clicks Index

Calibration methodology per channel for accurate traffic planning.

Quarterly Recalibration

Structured process for reviewing and adjusting the forecast every quarter.

Ready to build a forecast that actually works?

Book a free discovery call and we'll walk you through the system.

Book a Free Discovery Call