The problem is,… Tags: The independent variables — those things that might be causing sales to go up or down — include such information as employment trends, household income trends, demographic trends, inflation trends, rail shipments, electricity consumption and so on.
The results are often quite revealing and can lead to improved sales efforts or better targeting of advertising. For example, marketing directors might compare annual dollar sales or unit sales to gross domestic product GDP by state, or to total electricity consumption by state, or to total gasoline consumption by state, or An analysis of sales hundreds of other economic variables.
Regression can be applied to sales time-series data. If they have chosen the right variables, then multiple regression should indicate which variables are most important in explaining sales of their brand. Sales data take on new meaning and reveal new understanding when examined on some type of relative basis.
A new versus repeat analysis is also useful in measuring the effectiveness of new advertising, new products and the deliberate targeting of new customer segments.
Look for sales patterns and trends, such as seasonal variations, random events and cyclical patterns. For instance, such an analysis helps a business to come up with new sales strategy which would help to enhance customer base by identifying their need.
The first two series have identical positive growing trends. Marketing directors might need to do surveys among their target audience to measure their brand awareness, advertising message recall, brand image or trial. The brand development index BDI is a very similar measure to CDI, but it focuses on an individual brand within the product category.
It removes seasonal factors. And so on Sales forecasting methods and techniques: Sales analysis reports provide a record of past performance and can be used as a tool to predict future business performance.
BDIs could be based on adults only, teenagers only or men only, if per capita sales data are available for each of these groups. Analytics professionals understand the importance of data, especially in a complicated field such as healthcare.
Some small, specialized businesses with a single location are compact enough to use general sales data. A sales analysis report may compare actual sales to projected sales. This information is often available at an individual sales representative level, a team level and at the department level.
In some cases, a decline can reveal that customers' needs are changing.Analyzing sales helps your business as whole and your sales professionals specifically align performance with strategic objectives and market trends.
1. Calculate your net working capital turnover by dividing net sales by your average working capital. Sales trend analysis and Sales forecasting - Customer Trend Analysis. Sales trend analysis and timely identification of newly emerging customer trends is very important to businesses.
Sales patterns of customer segments may indicate market trends. Upward and downward trends in sales signify new market trends. How to Perform Sales Trend Analysis. To perform sales trend analysis, you need a place to input and analyze your sales data.
You could use Microsoft Excel or a software platform that is specifically designed for business intelligence. Many managers use Microsoft Excel for sales trend analysis to unlock insight and set up alerts.
Users can import large. The percentage-of-sales method is used to develop a budgeted set of financial statements. Each historical expense is converted into a percentage of net sales, and these percentages are then applied to the forecasted sales level in the budget period.
Many businesses will only have the senior executives participate in a SWOT analysis process. While that can be worthwhile for an operational analysis, a SWOT that focuses on sales and customer service should absolutely involve all employees that regularly interface with customers.
The purpose of this article is to present some basic ideas on sales analysis that might serve as a starting point for any novice who might be assigned the task of analyzing a firm’s sales data. The discussion is written from the perspective of sales data at a manufacturing company, but the concepts apply equally to retailers and service .Download