The year 2020 has literally come to teach us many lessons that our fast paced world was not able to teach us. Now that we have had the time to stop, pause and think – there are many things that we have been able to analyze. While many people will be able to relate to the same as far as their personal goals and evolution may go, there have been many small and medium sized businesses who have learnt plenty during this pandemic and the lock down that it brought upon us.
Business or entrepreneurship is a field or a skill where you always have to have your best foot forward – irrespective of the situation around you. Sales analysis is one of the key tools that you will need in order to stay afloat even in the most uncertain times. Before we take you through a step by step guide of what steps you would need for implementing sales analysis, let us understand what it really is.
Sales analysis is the power of mining all the data regarding your business to show you how you have performed and how you can improve your performance. Every company or business worth its salt has the right sales analysis tool in the back end so as to help you better your sales performance and up your conversion rate. The sales analysis tool is an important one that can pretty much make or break the performance of your business. Let us now understand the key metrics on which this plays out:
- Sales Growth over a period of time would be the first thing that the right sales analysis tool would measure. This period of time could be a quarter or a month – you can set it as per your wider business goals and also depending on the kind of products and services that you are trying to sell. There are some bigger products like real estate that may take longer to sell and hence it would be worthwhile to set the performance growth metric over a period of a quarter while other quick selling products like perishables and others can be analyzed over a period of a month.
- Sales Opportunities would also be a key metric that the sales analysis tool or software would report back to you. When you know what sales opportunities you missed and which ones you managed to convert, you will get a clear picture of what efforts are working out and which ones aren’t. This will further help you fine-tune and polish up your sales method and the strategy that you and your team employ in order to get through the all-important sales pipeline!
- Lead Times and Conversion Times would also be studied by the right sales analysis tool or software. You would need to know this lead time and conversion time so that you can plan your goals accordingly in the future. This would also help you understand any lags or delays so that you can replace those team members or equip them with better resources – whichever the case may be. You can easily do a case by case study and analysis, in this case, to understand what needs to be done in order to speed up the lead time. This would help you work on a number of elements from onboarding to other elements in the sales pipeline.
These are only a few metrics and there are many more. The thing to understand here is that the sales analysis tool will help you understand exactly where you need more work in order to get those conversions and to move closer and closer to your business goals.
Let us now cast a glance at the various steps involved in the sales analysis process.
In the very first step, you will have to ascertain the data that you would like to analyze, measure, and track. This will give you accurate insights. This data could relate to your conversion time, the time it takes to qualify and generate leads, or anything else.
You would have to make sure that you track this data so as to understand how it is affecting you, your business, and your sales team in particular. This step is a crucial one as it will help you understand the exact objective and goal that you want to reach by tracking and measuring that particular data category. If this step is not clear, then the sales analysis would be an utter failure.
In this step, your sales analysis tool would have to be chosen with much care. While many people usually rely on Microsoft Excel or related tools, there are many others that are also free to use and they would give you much more detailed insights.
For the right sales analysis tool, you would have to be very clear about the kind of data that needs to be analyzed and what kind of niche you are operating in. There are many niche related sales analysis tools in the market and they can be used quite easily to gain insights in a timely and effortless manner.
Sharing the results with the right people within your team and your other stakeholders would be the next crucial step. This is where you would be able to make a difference with all the information that you would have found thanks to the sales analysis tool that you have used.
When you share this information and the insights you have gathered, you will be able to give very clear instructions to your team about what they must do differently and what their revised goals are.
If you are a part of a sales team, then the right sales analysis tool can be used to generate a number of graphs and charts that would make the presentation of the results far more information and detailed one for your boss and the team.