Does it seem as if your company isn’t growing like you thought it would? Are your sales levels inconsistent, or your revenue projections often wrong? Do you know which sales personnel and products are your best performers? Maybe your sales reporting needs some fine-tuning.
A strategically-designed sales reporting plan is critical for your company’s success, because if you don’t know how you’re doing, you can’t do better.
Identify key performance indicators (KPIs)
KPIs should reflect measures of success most relevant for your company, not just sales figures.
Include data about your sales process and timing for each salesperson and each product you sell.
Include purchasing data (who buys what, how much, how often), to build your customer knowledge base.
The benefits of sales reporting are many. Reports give everyone in your company a timely snapshot of progress on a daily, weekly, monthly and annual basis. KPIs help engage and motivate employees to understand their responsibility for achieving goals. Using KPIs to establish benchmarks and analyze results allows you to identify sales trends -- high-value activities to build on and problems to correct.
Use sales reporting to make timely, informed decisions
Sales details and patterns are critical to overall financial analysis, since they demonstrate your company’s ability to generate revenue and grow. So you should:
- Evaluate sales personnel performance, identify those who need more training, and modify or reinforce sales goals.
- Monitor pricing and develop realistic budgets.
- Identify best-selling and weakest products.
- Analyze and fine-tune overall sales and marketing strategy and create well-targeted action plans.
- Manage more efficiently by focusing on what’s working best and eliminating unproductive activities.
- Compare yourself to competitors.
Effective sales reporting can help streamline your operations; increase cash flow and revenue; more accurately predict purchasing and production needs; decrease costs and strengthen customer loyalty. So regardless of your type or size of business, this is no place to cut corners.