Sales Analysis Report: Uncovering Key Information for Decision Making - Essay Sample

Introduction

A sales analysis report is an essential tool used by the organization to uncover information used in making key decisions. A good sales report breaks down sales based on geographical locations, sales made per year, and or sales per customer group (Honeycutt et al. 20). Sales analysis report usually shows the actual sales made annually or quarterly, depending on the manager's wish. Large business managers break sales data based on subsidiary, division, and regions. Sales analysis is vital in identifying market opportunities and targets for sales increase.

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Sales Growth

Some of the key sales analysis parts are sales growth analysis. Sales analysis should show the ability to grow revenues. To estimate sales growth, a sales trend line for the four years sales is plotted using a time-series graph. A sales trend graph is essential in determining the direction of growth sales have taken ("Sales Target"). Sales trend analysis is vital to project sales too.

Sales growth = (Sales for the current period - Sales for the previous period) / Sales for the previous period x 100%

Sales to date are another critical element of sales analysis. They compare current sales against the previous period sales. This analysis is aimed at getting a historical trend in sales.

Sales per Representative and Region

Data visualization is used to determine the number of sales made by each representative. The data for the four years are grouped based on the sales representative who executed the sales. The bar graph is used to show the sales that each representative managed for the four years. Sales team composition is a factor to consider in any analysis. Sales representatives who are experience are likely to perform better than the junior ones. Visualizing Sales rep performance using bar chart and projecting sales of junior staff is vital.

Sales by region analysis are very important for large corporations operating in many countries. This measure tracks and visualizes the most competitive and profitable territories. Under this metric, a pie chart or even a bar graph can be drawn, showing the amount of sales generated per region. Regional profitability is also plotted using a pie chart or bar graphs.

Average Sales and Purchase Value

Average sales per year for the four years are calculated. The mean sales value for each year will help the sales team determine the performing year. Mean sales value is a key revenue projector element. Average sales and purchase value will help the company managers understand customer behavior.Hence, the introduction of customer incentives and development strategies to strengthen sales. This metric is very important.

Average Annual Sales = Total Sales per year total units sold Sales Target

Sales Target measures current year sales revenue and compares it to target sales performance.Sales targets are either expressed as monetary, units, or number of sales accounts. Comparing sales performance against sales targets is a key management strategy. This metric creates a data-driven culture. Establishing effective sales target impacts sales performance. Bullet charts are used to visualize this metric (Mba and Seale). They capture past, current, and target sales in a single chart. This makes it easy to make instant sales performance insights.

Sales Target = (Sales for the current period/Sales target) x100%

Works Cited

Honeycutt, Earl D., et al. Sales Management: A Global Perspective. Psychology P, 2003.

Manuals, MicroStrategy P., and MicroStrategy. Sales and Distribution Analysis Module Reference for MicroStrategy Analytics Enterprise. MicroStrategy, 2013.

Mba, Gary D., and Gary Seale. Sales Analysis Tool Kit: Bundled with Sales, Sales Negotiations, Linkedin Mining Tools Instruction. 2019.

"Sales Target." Klipfolio.com, www.klipfolio.com/resources/kpi-examples/sales/sales-target.