A sales report is a report that provides an overview of the status of a company's sales activities. It shows the different trends that occur in sales volume over a certain time, but also analyzes the different steps of the sales funnel and the performance of sales executives..
It offers a snapshot of the company's exercise at a specific time to be able to assess the situation and determine the best decision to take and the type of action to take.
The sales report helps to find new potential market opportunities, where results could be improved.
The information transmitted in the sales report will largely feed into the most important sales decisions, such as discontinuing certain products, increasing quotes, paying bonuses, etc..
It's crucial to create clear and concise sales reports, displaying the most important information needed to steer your business out of the bumps and onto a smooth path to continued growth and success..
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When writing a report, keep the end goals in mind. There are a couple of crucial questions to ask: who are you reporting for and why? After these questions are answered, the report can be easily articulated.
You must first consider the audience and ask yourself what information they need. Thus, this will serve as a guide to know what data to provide. The sales report should reflect the needs of each particular audience.
For example, the information that the marketing manager is interested in will be very different from what the CFO is looking for..
The marketing manager will want to know how well the sales reps are capturing the leads that the marketing team offers. You will also want to know which marketing campaigns have the highest conversion rates..
In contrast, the CFO will want all of the sales numbers, along with expenses. You also need accurate sales forecasts.
It must be decided what data will give an accurate picture of the performance of the sales team, which will help make the best decisions. The sales report should answer these key questions:
- Are sales targets being met?
- What is the income vs. expenses in the chosen time period? How does current sales compare to previous periods?
- What products and services sell the most? Which ones don't meet expectations?
- What is the sales forecast for the next month / quarter / year?
- What are the areas of opportunities? Is it time to withdraw from some territory or product line?
The time frame will help determine the focus of the report. Choosing a specific time period will also allow for more accurate period-to-period comparisons..
For example, an annual report will allow to review the main trends in the industry, the buying habits of the customers, as well as the results of the main marketing initiatives, new product developments and seasonal fluctuations..
How the information is conveyed is as important as the information itself. The main function of a good sales report is to convey information, in a way that is easily understandable and actionable..
A bar chart can be much better to show how much sales of the flagship product have increased in the last five years, than simply putting the numbers in a table..
Visual data creation is not just about making your sales report look pretty. It's also about making the information attractive and easy to understand..
Top management doesn't always have time to go into detail, so you need a summary that lists the highlights.
This summary can be at the beginning of the report, before entering the data and findings. This is the last thing to be written, as it will summarize the main ideas drawn, and discuss the next steps.
This report provides a bird's-eye view of the contacts found in the database, as well as detailed views of the industry, the date of the last contact, and other attributes..
This report can help you identify new opportunities, as well as find connections on the web..
This report shows exactly what stage each customer is in in your pipeline. It can also be organized by product or source to compare and analyze various important customer groups and their progress..
To get an accurate reading of where important customers are coming from, the database will need to be integrated with compatible marketing software..
This report is used to measure the progress of sales in relation to the objectives, broken down by source, product and sales representative.
It can help you understand which tactics (social media, email, search, etc.) are driving the most sales, and where you need to duplicate your effort.
Sales visibility is especially important in responding to executives and other stakeholders.
A sales summary can also be used to forecast and set new goals, based on current closing rates..
It is an excellent tool to ensure that potential customers are being properly monitored, as well as sales and their behavior..
This report is a must for sales and marketing strategies, based on customer accounts..
A profit and loss report shows in real time the quotes that are closing or being lost. Likewise, which representatives are responsible for those quotes and how their closing rate compares with those of the industry or with the objectives themselves..
Other indicators that can be included in a custom sales report are the following:
Sales contracts can have very different prices, depending on a number of factors, but the average size of the portfolio quotes must be determined in order to make quick, but solid forecasts and sales strategies..
Not only is it important to know how many quotes are in process, it is also important to know where they are, when they are expected to close and the probability that they will become sales for the company.
Determine the average number of open offers required to close a quote, based on historical results.
It refers to the average time it takes for a candidate to enter the channel and go through the entire sales process to the closing stage. The faster the sales cycle, the better it will be for the sales team.
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