A company needs to know which products competitors are selling more of to draw its own strategy. Sales analysis helps the company know it is meeting its sales objectives in a given timeframe.
Understanding your market helps a business draw an effective sales strategy. A good sales analyst has to understand marketplace trends. It is always good to know which product is selling at a particular time and where. In that sense, a business is able to identify which market segment is booming and bringing in more revenue.Software to help a business keep track of sales is available. Most such technology will help the business owner know whether at least minimum profit is being realized on each product. The whole purpose of analysis is to derive an accurate picture of the performance of a business using available data. Syspro is one of the most commonly used programs in sales analysis. It integrates all the data required to assess sales.
The report also includes details such as sales done by each individual sales representative, for instance. Without sales analysis, it is difficult to know whether a business is doing well or not. Most businesses collapse because they did not do a good job analyzing their sales and company performance
Sales analysis reports are used to measure and monitor sales department performance. Sales managers use these reports to develop sales strategies, better understand past results and to help forecast future results. Sales representatives use these reports to closely track their performance against sales goals and to plan and prioritize sales activities. Finance and human resources staff members use these reports to calculate sales compensation and bonus payouts for sales department employees.Sales analytics helps develop a ad-hoc ability which reduces reporting times, resulting in more time to sell, and in better focused selling. For example an organization with a $50 million account may set a strategic goal to increase margins, but the field needs to execute this strategy tactically: one account at a time. Without the power of analytics, this may be a daunting task.
When revenues are down, profitability will suffer and new customer acquisitions may have slowed to a trickle, and customer retention is in a downward spiral. Pressure is up on sales managers to buck the trend and increase sales productivity. At the same time, sales departments are experiencing increases in the volume and complexity of sales information that resides in multiple sales force automation (SFA) and customer relationship management (CRM) applications. Sales and customer relationship data has grown over the past few years to become one of your most valuable productivity assets— if only you could turn it into actionable customer intelligence. Analytic applications to optimize sales are emerging as potent weapons that can provide the competitive edge a company needs to survive and prosper.