Table of Contents
What is sales analysis?
Need to analyze sales
12 methods of sales analysis
Tools to support sales analysis
summary
What is sales analysis?
Analysis Image Diagram
Sales analysis is the process of collecting and analyzing data related to sales activities undertaken by a company or organization. The objective is to effectively improve sales chinese overseas europe phone number list activities and increase sales. Specifically, numerical data can be used as sales indicators, and the knowledge and expertise of each person in charge can be converted into knowledge.
Need to analyze sales
Sales analysis is required for two major purposes: developing new customers and preventing existing customers from leaving the company. A detailed categorization is as follows.
Sales forecasting
・Perception of customer needs
・Sharing of know-how
・Breaking away from gerrymandering
Each is described in detail below.
To forecast sales
Visual representation of sales-related data in a sales analysis facilitates sales forecasting. By comparing and verifying sales forecasts and targets, sales strategies can be examined. If sales are not favorable, you will be able to track down the causes of weak sales and make smooth course correction.
To facilitate the perception of customer needs
SALES ANALYSIS IS ALSO NECESSARY TO FACILITATE THE DETECTION OF CUSTOMER NEEDS. IN RECENT YEARS, THE PROLIFERATION OF SOCIAL NETWORKING SERVICES AND THE DIVERSIFICATION OF CONTENT HAVE MADE IT NECESSARY TO QUICKLY IDENTIFY CUSTOMER NEEDS AT AN EARLY STAGE. BASED ON SALES ANALYSIS, IT IS EASIER TO RECOGNIZE CHANGES IN CUSTOMER NEEDS BY HIGHLIGHTING "WHO NEEDS WHAT KIND OF PRODUCTS," "WHAT ARE THE TRENDS OF SERVICES THAT ARE SELLING WELL," ETC.
To share know-how
Sales analysis is necessary to share know-how. Sales analysis collects data not only on successes, but also on failures. By turning successes into know-how and learning from failures, specific advice can be provided to those in charge of issues. As a result, sales stagnation can be prevented.
To break away from gerrymandering
Sales analysis can help you break out of the genus mentality. Sales activities are usually conducted by individual salespeople using their own unique methods, and are easily attributed to a single sales person. In order to break out of this tendency, it is important to share sales know-how and visualize the sales flow.
Related Articles>> Causes of Sales Attribution and 7 Solutions
12 methods of sales analysis
Sales analysis in progress
1. Trend Analysis
Trend analysis is a method of evaluating important trends in an industry, product, or service in the course of a sales analysis. An example would be to compare the performance of your company with that of your competitors to determine where you stand in your industry. While this is an excellent way to get an overall picture, it does not provide a detailed analysis and therefore does not identify specific causes and solutions.
2. Factor Analysis
FACTOR ANALYSIS IS A METHOD OF ANALYZING IN DETAIL THE FACTORS THAT INFLUENCED AN INDUSTRY OR SERVICE BASED ON THE RESULTS OF A TREND ANALYSIS. FOR EXAMPLE, ONE MIGHT ANALYZE FACTORS SUCH AS "THEY PLACED SNS ADS" OR "THEY STARTED TV COMMERCIALS" FOR A PRODUCT OR SERVICE OF ANOTHER COMPANY WHOSE SALES HAVE SUDDENLY INCREASED. SINCE FACTOR ANALYSIS IS A HYPOTHESIS, IT CANNOT BE PROVEN TO BE FACTUAL.
3. Verification Analysis
Validation analysis is an analytical method used to test hypotheses derived from trend and factor analysis. Data on the hypothesis is collected, practiced, and tested to determine correctness or incorrectness. Note that conducting a validation analysis while the hypothesis is unclear may not yield sufficient results.
4. KPI ANALYSIS
KPI analysis is the process of setting and analyzing KPIs, also known as Key Performance Indicators. It refers to important intermediate targets that should be focused on to achieve goals and quotas, and is a term used primarily in sales and marketing activities.
5. Competitive Analysis
Competitive analysis is the process of conducting a detailed analysis of the companies and services that compete with your company's products and services. The purpose is to identify differentiators such as your company's superiority and uniqueness. When analyzing, we do not focus on a specific competitor, but rather on multiple competitors to understand the overall structure of the market.
6. Customer Analysis
Customer analysis is the process of deepening your understanding of your customers through detailed research into their characteristics and purchasing history. It aims to increase sales by reading customer needs from data and clarifying the customer's 5W1H (When, Where, Who, What, Why, and How).
7. Cohort Analysis
Cohort analysis is the analysis and study of consumption trends by generation. Cohort analysis in sales activities refers to grouping customers under specific conditions and comparing and analyzing various indicators. For example, by grouping prospects from seminars with those from Web advertising and comparing their closing rates, we can use this as a reference for future budget allocation.