The best part? To accurately forecast these, ensure your reps are doing their due diligence to guarantee a realistic sales pipeline. For instance, if your organization places a higher value on meeting prospects in person, youll want to include KPIs focused on visiting prospects. While the content of sales reports may vary depending on your goal, they include metrics like revenue, accounts won, leads, and more. Many large companies have diversified product portfolios and operate at different locations and channels within the same organization. This exercise helps identify new opportunities and ideas for concepts or products. Sales engagement metrics like page views, ebook download, newsletter signups, demo requests. We use them to track progress towards goals and as part of our sales strategy decision-making process. For example, the figure below compares the share prices of two companies, X and Y, over one year. For example, if you sell children's board games, you're most likely going to see peak sales in December for the holidays. Its helpful for understanding team dynamics, motivating reps, recognizing any sales stars who might need additional recognition, and supporting any reps who may be struggling and need training or other resources. Most managers use Microsoft Excel for analyzing sales trends to unlock insight and set up alerts. Subscribe to the Sales Blog below. Depending on how you use it, the report can also tell you the leads assigned to each sales rep and how long theyve had the lead. Use a tool (such as Pipedrive's CRM) to track this data as leads travel through your pipeline. frequently new sales channels reveal an initial spike in sales as channel usage is fully maximized, after which the sales growth rate will flatten significantly. Your reporting timeframe depends on your sales objectives and how frequently you need to update your team or management. Following a similar approach, we get the following estimates for the financial years 2019 to 2021. Analysts typically review sales patterns to establish why a company's products or services are selling more effectively. It is a useful method to detect short-term changes in revenue growth and performance. A marketing analyst wants to assess trends in tennis racquet sales. 51 Best Sales Email Subject Lines (Tested Examples Increase Open Rates) in 2023, Social Selling for Modern Sales Professionals: A Quick Guide, 10 Effective Lead Generation Ideas That Arent eBooks, Cold Email for SMBs: How to Drive More Leads, Best CRM for SMB: 13 Top Picks for Small Businesses. Take timely decisions such as if you are not into e-commerce till today this may be right time to move. From that, you can build out proper strategies to change situations. 7. Example of a Sales Trend by Product Class Report for a Retail Company You can find hundreds of additional examples here Who Uses This Type of Dashboard report? This sales analysis involves justifying the trends and observations in sales-related data with reasonings. Many sales teams focus on identifying potential clients and closing deals, leaving little time for detailed reporting. Here are several examples of sales trend analysis: Sales by product. Use this sales report template to build effective forecasts. We've listed some of the most important ones below. Users can customize graphs according to key business metrics that need to be tracked using Excel's built-in tools. How to calculate it: Sum of all revenue generated by an individual customer. I am excited to delve deep into specifics of various industries, where I can identify the best solutions for clients I work with. 100s of additional templates are available through the link below. Provides easy, measurable way to track our progress. Overall, keep your presentation actionable and easily digestible. This article will walk you through a detailed overview of sales trend analysis and how to implement it the right way. It allows users to import huge data and create powerful dashboards. By analyzing data such as the number of deals in each stage of the pipeline, you can see where improvements can be made and make adjustments to your sales process accordingly. For instance, if youve been tracking your sales data for the past few months, forecasting analysis can help you determine what your sales might look like over the next 3, 6, or 12 months. Understanding why your reps lose deals provides insight into why potential clients go elsewhere. As sales to related parties come at a negative value, we adjust it to zero. To get the most value out of your sales analysis reports, interpret the data and provide recommendations on how to improve your sales teams performance. When creating this report template, youll want to add a column or prompt to your current sales pipeline. Do you know which products from your company fare the best? You wont move from a 48-hour lead response time to five minutes overnight. the sequence of touch points across email, phone calls, rich media, and social media), to increase the probability of closing a deal. With sales analysis reports, you can set sales goals that are informed by data and reality, rather than guesswork, and get better results. Now, its your turn to leverage sales data analysis to improve the sales performance of your team. Analyzing sales data can be a complex process, but with the right tools and techniques, it can be a powerful way to improve the performance of your sales team. 5. Insights from these reports help you identify the strengths and weaknesses of your sales strategy. Determine who will read your report and what they expect to know. Its one thing to know your data; presenting it so that relevant stakeholders can understand and act on it is another. And the progress of your sales reps towards your goals. Here is an example of a Sales Trend by Product Class report with detailed monthly figures for current and prior year as well as a section for graphical analysis. If the opposite is true, you can find whats working and share those tactics with the team. If they meet with ten per day, but close none, this report will allow you to understand why and propose better closing techniques. Indeed much of the sales analytics and reporting is available inside the CRM. This report helps you determine the effectiveness of your sales strategy so you can tweak it if necessary. Average sales cycle length is the average time it takes a rep to close a sale. As a sales leader, you need to know the deals that are likely to get closed, those that may not, and how much of an impact each deal has on your bottom line. You can also identify who would benefit from regular one-on-one meetings to level up and hit their quotas. Or, you notice that theres a preference for a competitors product. Simply plotting all revenue on a chart is not a good idea. For instance, you might find that customers who sign up for a free trial are often more likely to convert into paying customers if they use your products collaboration features during their trial. You can even add forecasted deal amounts to see the worth of each deal and its proximity to closing. Sales trend analysis (from FineReport) Yearly growth percentage of total sales Illustrations 1 Explanation Seeing a breakdown of new business and renewals, as well as the reps who contributed to each. Keep in mind that these can end up being highly incorrect. Once you get a good handle on the market conditions, you can evaluate your companys performance and identify the weaknesses of your sales team. Sales Trend Analysis is a concise process with results that are of critical importance for the business. Now it is up to us to confirm the underlying assumptions by employing other forecasting and analysis methods to arrive at the most likely forecast for the future sales performance of the business. Analyzing won and lost deals by rep will reveal it. Your marketing lead may only be interested in the sales reports from marketing campaigns. Let's see examples of SQL use for sales analytics problems using the Microsoft Northwind sample database. If there was a dip in the close rate, why? Review the data regularly against historical averages to monitor growth and problem areas. Youll also be able to tell how much you can improve your sales based on that data. Study the sales patterns of products, customers, or sales regions, to predict the future. And your busy CEO may only want the overall results of your marketing and sales activities without the specifics of how you reached your goals. hbspt.cta._relativeUrls=true;hbspt.cta.load(53, '82408fb1-bc60-433c-831e-30402af7d0b2', {"useNewLoader":"true","region":"na1"}); A sales report or sales analysis report is a document that shows trends impacting your sales operations within a specific period. A spike or dip in sales may be the result of factors beyond your control. To do this, you need to know the purpose and audience of your sales report. For example, two reps who have the same average quota attainment could both appear to be stellar but differ wildly in actual performance. Your average deal size helps in predicting revenue. Sales performance metrics like win rate, average deal size, revenue, pipeline value. Essentially, these reports are about finding meaningful patterns in your data and actionable insights to improve the sales performance of your team--and help them close more deals. Tools like the #SalesDashboard are used to analyze trends & performance rankings related to the company's sales. Its useful for sales managers to coach their reps and fix the vulnerabilities in their sales process/pipeline. This report allows you to track daily and weekly sales data, and its especially useful if youre running a business with high sales quantities per day or week. Evaluating performance against variables like company size, product type, sales reps, and sales teams. Example of. Where can you find a sales team performance report? This may involve gathering data from a variety of sources, like a customer relationship management (CRM) system like Close, product analytics software like Mixpanel, Excel spreadsheets, and traffic monitoring software like Google Analytics. The trend can be upward, downward, steady, or periodic fluctuations. For example, in the case of Colgate, we assume that 2007 is the base case and analyze the sales and net profit performance over the years. Magnimetrics and the author of this publication accept no responsibility for any damages or losses sustained in the result of using the information presented in the publication. Don't you believe us? With LTV, you can make informed decisions on how much your company can spend on acquiring new customers (CAC). As youll see, sales data analysis provides a wealth of intelligence about your sales strategy, the performance of your team, and much more. This KPI gives historical data on how your team is performing in terms of revenue generated, the number of product subscriptions sold, and the like. Budgeting purposes or to estimate future revenue and expenses. English Spanish French German Italian Danish About Partners Find a Partner Becoming a Partner Technology Partners Or it could lead you to realize that many of your customers are dropping off because they dont understand the pricing plans you offer, so you can update your pricing page to include more explanations and make it easier for customers to understand. revenuegrid.com, 2023 | All Rights Reserved. There are many different types of sales reports that businesses can use to analyze their sales data. The following income statement information is available for the last five years: Solution: Trend Analysis is calculated using the change in amount formula given below. How to calculate it: Value of projected sale x percentage of confidence that they will Close. To deep-dive into the E-commerce sales of product category*. Employing Sales Trend Analysis leads to decisions based on the actual data of the company. it provides easy, measurable way to track our progress. Company X shows an overall uptrend over the past year with a small trend reversal in February. Or, maybe you see a group of reps that are converting new leads to opportunities at a higher rate. This report is also a litmus test for the strengths and weaknesses of individual reps. Psst Want to get a head start? 4. Sales Trends Analysis. Ultimately, it might seem like a no-brainer, but it's still worth a reminder always monitor your average deal size because its vital to your sales operations. These reports allow sales managers and reps to identify trends, see where to make improvements, and make data-driven decisions that help them hit sales goals. Free and premium plans, Content management software. In retail, this analysis of past trends in sales or revenue; allows to predict the future market. Companies typically generate these reports on a regular basisdaily, weekly, or monthlyand they include various data points on the activities and success of the sales team, as well as opportunities for improvement. That means your sales reps can spend more time selling, and your sales force can grow stronger. This e-commerce sales channel is occupying more than 50% of the sales transaction in the last couple of years. Good luck out there! For sales directors, it serves as a gateway into the future and can help reduce customer churn and increase long-term sales. I will convince you to exercise, this is another example. Are there any common characteristics among those successful deals? It is customary to see the rate of growth in sales for a mature region begin to decline and then settle into a relatively tight range over time. A = Activity (eg. Creating a custom total sales report dashboard allows your management team to quickly see how each salesperson is doing over a period. It is critical to use the proper visualizations and know the data well enough to perform adequate drill-downs and gather meaningful insight. Its because this analysis shows you: Follow these steps to start analyzing your sales trends: When choosing which KPIs or metrics to track and review for trends, you might want to consider the following: Revenue intelligence platforms like Revenue Grid provide a comprehensive sales dashboard that gives you everything you need to understand how your sales team is performing at any time. Before creating a sales report, the first and foremost step is to decide who your target audience is. Expansion MRR is the revenue you collected from existing customers as they upgraded their plans. Sales data analytics examines sales reports to evaluate how your company is performing against its goals. The table is based on the sales figure for the last four months. But when we compare with growth% we can find the exact trend insights like actual growth and decline from up trends & down trends. To understand the state of your business, you shouldnt track only deals in progress. Multi-product firms can use the results from this analysis to take constructive actions, like discontinuing unprofitable products, that drag down the company's sales. It can also highlight which closed deals are most valuable. described predictive analytics as a priority, Determine the characteristics of your repeat customers. Tools like Databox, Tableau, and Looker make it easy to create stunning visualizations from your data and help decision-makers/stakeholders quickly see patterns and trends that might not be immediately apparent from looking at raw data. Remember to check if the calculation gives a negative amount and replace those with zero. How to conduct a sales win-loss analysis? Or you might notice that sales drop sharply when a competitor launched a new product or feature, and decide to adjust your pricing accordingly. Data set used in this analysis: sales by merchandise line (product category) from the year 1999 to 2015 ( Data Source ). This graph is an example of a sales pattern that is analyzed on a month on month basis. Dont forget to share this article with colleagues and friends and download the Excel example file below. A sales trend analysis is simply the review of historical revenue or sales data to find patterns in terms of change in revenue growth of a business. Identifying your goal is the first step toward creating a winning sales report. What about which ones sell the worst? This report allows you to track the percentage of leads that convert into paying customers. Again, data can come from anywhere. In my spare time, I am into skiing, hiking and running. All these insights help you set up clear processes and training to help reps reach their sales targets. This report allows you to track the performance of an individual or a group of sales reps and identify areas of strength and improvement. For details on this matter, refer to this post. Prospects that have made their way this far in your funnel are highly likely to convert. Studying sales patterns to predict future performance; Finding uncommon developments over the period, which we need to address in our forecasts; Estimating and forecasting future sales revenue; Identify the volume to stock-up from different components and products; Prepare rolling dashboards, outlining the last twelve-month period visually; Perform analysis to identify slow-moving inventory; Profiling customer behavior, preferences and buying habits; Product this can help us identify products with reduced performance, and modify our strategy accordingly; Product category helps us make timely decisions to cut prices, advertise, discontinue product groups, and set up goals per product line; Region we can analyze new markets separately, and see how well the company is building the brand and distribution network; Client sudden fluctuations in sales to a client need to be investigated, as they might help us pinpoint an issue with the product or service. Done well, sales trend analysis is a great practice to improve your business. A Trend is an upwards or downwards shift in the development of a metric over time. This visual enables you to compare your findings with the previous period and learn which is the most effective . Thats more fun than relying on clunky spreadsheets, right? Ive already told you how sales pipeline metrics can be misleading. This allows you to know if underperforming reps need coaching. Why sales teams should measure this: It lets you approach product sales data from various angles like demographics, product popularity, and the like. The most common ones include: When performing Sales Trend Analysis, we need to make sure that the data is complete and up to date. The sales call report can also help you segment data. Average Sales Cycle Length Report. Neither Magnimetrics nor any person acting on their behalf may be held responsible for the use which may be made of the information contained herein. Lets say you were selling 1000 units a month with 10 people on your sales and marketing teams, forecasting analysis can help you determine how many more units you could sell if you added a few more people to the team. To calculate the change over a longer period of timefor example, to develop a sales trendfollow the steps below: Select the base year. Understanding the sales pipeline stages where your team excels and needs help. Sales Trend Analysis and Forecasting in Excel | by Dobromir Dikov, FCCA | Magnimetrics | Medium Write Sign up Sign In 500 Apologies, but something went wrong on our end. Some examples include stock market analysis, economic analysis, and social media analysis. If your team isnt hitting the companys revenue goals, you can use sales reports to find gaps to improve your sales process. This provides both a high-level picture and the ability to get a detailed, account level analysis on the health of their accounts. Otherwise, you can start finding areas for improvement. You can identify patterns and make informed decisions about how to adjust your sales strategy. You may also identify misalignment during the sales process, or some other aspect of the customer experience. For most SaaS companies, this is an important metric that tells you the number of paying customers multiplied by the average amount they pay. If youre using Close as your CRM tool, it comes with a pipeline view that allows you to get all this information in one simple report. Ideally, you want your reps to close a healthy number of deals compared to the number of prospects they meet with. Next, we prepare some pivot tables that will allow us to look at sales aggregated on different bases. For example, if you had 30 new leads enter your pipeline last week and 15 converted to the next stage (such as qualification), then that stage has a conversion rate of 50%. It also provides information on key business development metrics, such as emails, prospect visits, and client calls. Creating daily sales reports may be time-consuming. To make timely decisions such as to cut prices, advertise more, or discontinue the product. Trend percentages. It also allows you to set expectations and milestones for your sales cycle. Microsoft Excel is a robust tool for sales data analysis and interpretation. Sales analysis reports offer numerous benefits for sales managers and reps. Looking at sales separated by the type of the client, and plotting those on a column bar chart, we can instantly spot two trends: Let us look at Plotting the values on a chart and adding a linear trendline. It also measures the effectiveness of your sales team at converting leads into customers. Trend Analysis Formula - Example #1 Let us take the example of a company DFG Inc. which is engaged in the manufacturing of customized machine parts. I am a finance professional with 10+ years of experience in audit, controlling, reporting, financial analysis and modeling. Everything from understanding customer behavior to tracking sales performance, you can use data and reports to make better decisions and get better sales results. Knowing why we win is as valuable as knowing why we lose, Previous post: Organize your sales operations team structure, Next post: Types of sales tools and how to use them. Plus, you can compare this metric to industry benchmarks. the actual number of decision-makers that your team gets to speak with on the phone), C = Conversion (eg. You can use KPIs and revenue bar charts to look at the product sales overall or in a specific time frame. Maybe that rep needs extra training on cold calls to improve their sales pitch. Measuring the average time it takes sales reps to follow up with a lead. Based on what you intend to achieve, you can also seek to evaluate parameters like: You can work on the gaps found in a sales performance analysis to put your business back on track to where you need to be.. This sales dashboard example allows salespeople to easily view and drill into account data pre-sorted by industry or by region for any time period they choose. Keep in mind, you need to track short and long term trends and account for changes like holidays when looking at YOY metrics. Our trendline shows that most likely, we can expect a decline in sales to this market to continue. If your team consistently has a high conversion rate of turning leads into opportunities, you can scale the strategies that are already working. Or our trend might be getting thrown off by a substantial one-off decrease in the financial year 2017. How are your competitors doing? On the flip side, records could reveal that a second rep has the same attainment as the first, but relies on other teammates to run demos or closing calls. You can use this report to first understand how your team is faring compared to past performance and then use that information to make relevant changes. Overall, keep your presentation actionable and easily digestible. Data often gets stale after some time. Note: If possible attribute which changes to your sales data were caused by team tactics and which are attributed to the larger macro-economic environment. I've shown you the different types of sales analysis methods and given you a step-by-step strategy to perform your first sales analysis. And happy customers stay customers; no wonder 55% of customers say product is the reason they remain loyal to a brand. This can also increase transparency and accountability in the team, giving reps an incentive to work hard and hit their targets. Find opportunities and potential problems. How many of them did you sell last year or month? Setting expectations for each rep, creating weekly and monthly milestones, tracking the performance of each rep, and gauging the overall success of your companys sales strategy. This shows you response rates for each step in your email sequences, giving you the right analytics to optimize and improve your overall results. What to track: Sum of all calls and emails made by the sales team in a specified period. Those that interest your CEO may not interest your director or VP of marketing. To perform a robust and insightful sales trend analysis in a company that operates with physical goods, we need a sound inventory management system. Micro trends can last for a week whilst macro trends can last a quarter. Some of them have changed jobs, emails, and last names or moved, gone on vacation, etc. We gather actionable information on the performance of our business, which can significantly improve our decision-making process. This allows salespeople to choose why your team lost the deal. We can now compare the results we get from each calculation for the years 2019 to 2021. This report allows you to predict future sales based on past data. Once you start collecting your sales data, the next step is to identify the key metrics and trends that are most relevant to your business goals. If your data reveals that one rep spends a lot of time helping others get deals across the finish line while still maintaining high attainment, you have a great manager candidate on your hands. Close's reporting features makes your sales analysis easier than ever. Best for: Setting expectations for each rep, creating weekly and monthly milestones, tracking the performance of each rep, and gauging the overall success of your company's sales strategy. The table shows the calculation of the mean to show the prediction of the trend for the coming months. Why sales teams should measure this: Guided selling through prescriptive analytics will make the jobs of your sales reps easier. And this is where Sales Trend Analysis comes to help. We have sent you a confirmation email to [emailprotected], Sorry, we can't get to your account right now. This is where sales reporting shines. You can identify which products or features keep customers engaged the most, which ones are driving the most sales and revenue, and which ones need to be improved. The data shows the amount, client, quantity, period, and others. Below lets look at the top ten sales analysis metrics. A sales analysis report is a graphical, written, or video document that provides in-depth information about the performance of the sales team. Sales reps may want granular details on their sales performance. Youll notice each stage of the pipeline and where opportunities are within it. There are many different applications for trend analysis. See which one you like most and have the info your boss . This type of sales analysis looks for patterns in sales data (whether they are going up or down) over a specific timeframe. Inform the increase in sales at what percentage from last year or over the year. Choose the data and insights that match your target audiences interests and needs. Tailor your sales report accordingly. Choose Stat > Time Series > Trend Analysis. Marketing teams expect sales reps to put the collateral they create to good use. You can use this report to track and find gaps in the close rate of your team. Learn the ins and outs of crafting a sales pitch that motivates your prospects to action. Let us look at how sales are developing per country where the transactions occurred.Looking at our breakdown per country, we can only look at the top 20 clients, as, on average, these account for more than 90% of the total sales. That is, sources youve tested and found to be true. Source. So its important to regularly track and update your data so you always have the most up-to-date information. Using Excels forecast.linear function, we can calculate the forecasted sales per country for the next three years. Simply sharing raw data with your team isnt enough. Select data to analyze. You need to analyze the right kind of sales data for generating meaningful insights that positively affect your bottom line. Your investigation could lead you to decide to add more information to the page or tweak its design. Good question. You can consider choosing a weekly, monthly, quarterly, or yearly period depending on your requirements. Perhaps prospects go crazy for specific features that you offer. Write an executive summary of your report. Extrapolation of a historical time series will not necessarily yield a valid prediction of the future. Its useful for estimations of future performance, and a straight-forward, measurable way to track our progress towards our goals. Here are some tips to help you write a sales trend analysis report effectively: You need accurate data to ensure your sales trends analysis is meaningful and practical. Or if youre selling a subscription product or service, you can uncover information about their usage patterns, when/why they churn, and which features theyre using. Using the slopes and intercepts of both, we can calculate a forecast for sales per Group for the next three years. Make sure to customize your report to include the metrics that matter most to your sales team. The technique could involve surveying your customers over the phone, by email, or in person. Lead generation is a great example. Have they done anything differently from you? If you are interested in other forecasting articles, take a look at our introductory article onCreating a Cash Flow Forecast Model. Areas where your sales process is generating a lot of sales, sales reps who are performing best, or proposal writing practices that are high converting, so you can duplicate those successes. However, churn rates higher than your company or industry average can reveal larger problems.