Analyzing sales results typically involves examines sales data, such as sales closed per month, to understand and improve to overall performance. Use the data and compare with previous data to make good business decisions. Analyzing sales helps your business as whole and your sales professionals specifically align performance with strategic objectives and market trends.
Calculate your net working capital turnover by dividing net sales by your average working capital. A low ratio could indicate inefficiencies in your organization. A high level could mean that you use too much capital.
Calculate sales growth by subtracting sales revenue for the last year from the current year and divide that by the sales revenue from last year. Multiply that by 100 to get the sale growth percentage. Determine if your business is growing, declining or remaining flat and take action to remedy any problems. For example, if sales for a particular product decline consistently for three years, consider implementing an end-of-life strategy for the product so you can focus on other efforts.
Determine an affordable growth rate by dividing your company’s net income by last year’s earnings and multiply that by 100. If your sales growth exceeds your affordable growth rate, you may need to allocate additional assets and inventory to sustain growth.
Calculate your break even percentage by dividing gross profit by total expenses and multiplying by 100. The results reveal what sales you require to break even, neither make a profit or lose money. Use this ratio to identify actions necessary to increase sales in order impact profits.
Create a mind map to examine strengths and weaknesses in your sales strategies. For example, write one of your strengths, such as experienced sales force, in the center of a page. Draw a circle around it. Draw lines out from the circle and label them with reasons why you have been successful in the past. Use this technique to help and your sales force learn from your experiences and remedy shortcomings.
Locate competitive data from your competitor’s websites, or Hoovers or Dun & Bradstreet, to assess your company’s market share. Look for sales patterns and trends, such as seasonal variations, random events and cyclical patterns. Adjust your sales strategies to accommodate and exploit these opportunities.
Get customer feedback regarding recent sales. Run focus groups with selected individuals to learn more about their personal experiences with buying your products. Conduct online surveys to get information you can use in forecasting future sales figures.