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What Is a Sales Analysis?

A team of professionals determines what works and doesn't work when selling a product or service.
Sales analysis can be useful in forecasting profits of a business.
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  • Written By: Tess C. Taylor
  • Edited By: W. Everett
  • Last Modified Date: 24 October 2014
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The term “sales analysis” refers to the method in which a sales team is evaluated for its success in meeting overall sales goals in a specified time frame, which leads to profitability for the organization that the sales force represents. A team of sales professionals that meets or exceeds its goals within a certain time frame is considered successful, while a sales force that doesn’t meet its goals is more closely evaluated to see what caused the shortcomings. In most cases, the sales analysis can be a way for an organization to report in black and white how the sales team is performing over a period of several months and years in order to be strategic when launching new promotions or building business in new areas.

A well-managed sales analysis system can be a powerful marketing evaluation tool that the organization uses to formulate an annual plan of action that takes advantage of the performance of the sales force. Most often, a sales analysis is completed monthly, then quarterly to carefully measure the sales performance. Many organizations use this to forecast the best times to roll out new products, services, and specials to maximize profits during peak periods as identified by the sales reports. Sales goals are compared to actual sales produced and any discrepancies are explained and corrected immediately to prevent further setbacks.

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Sales analysis can be useful in forecasting profits of a business. By studying the fluctuations in certain areas of the sales team performance, during special promotions or sales campaigns, and during peak seasons, the leaders of a company can pinpoint optimal times to roll out new products and services to consumers. Sales analysis can also identify certain members of a sales team and certain campaigns that are not performing up to standards, which can lead to elimination of some sales employees or programs.

Sales reporting and forecasting are helpful tools that can be used to increase awareness of top-performing sales teams and reward employees who have higher-than-average performance ratings. In addition, a sales analysis can identify areas in the sales force where additional training and support are needed to bring in better results. This can lead to greater performance on behalf of the entire sales team and can produce higher revenues for the organization as a result of these efforts.

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