A Sales Performance Analysis is a way of assessing where your business currently stands. That is, compared to where it wants to be in the future. Fundamentally, it uses industry businesses standards, performance, and other elements for comparison. Additionally, it shows the gaps between the current state of your business and how it should be performing. But also what are the causes for the gap in between.
Need for Sales Performance Analysis
A Sales Performance Analysis addresses the questions “Where are we?”. And “Where do we need to be?”. Considerably, as an organisation grows, it loses track of some objectives. As well as relationships with customers and peers. That is why businesses need gap analysis. That is, to put them back on track.
When a company neglects to accurately analyse sales performance, it can put the business at a disadvantage. That is, compared with the competition. Fundamentally, a vulnerability or defect in the sales pipeline, strategy, or team will continue to go unnoticed. That is if the owner doesn’t do regular analysis of the situation. Consequently, over time even a small issue could turn into a catastrophe. And that’s hard for your business to recover from. Crucially, it’s wise to uncover issues as early as possible. That is, so you can take the proper steps to resolve the issue in your sales process.
Importance of Performance Analysis
A gap exists in three categories. That is business goals, people’s performance, and organisational capability. They can be differently prioritised with different approaches. Fundamentally, conducting an analysis on them bears the following significance.
Provides comprehensive overview of business goals
Analysing all categories allows directors and executives to measure their resources in their bid to meet missions, goals, and objectives.
Decision making
A business needs sales performance analysis to focus its efforts and make informed decisions especially in resource allocation.
Stakeholder satisfaction
Measuring a gap realistically builds stakeholder confidence.
Employee motivation
Sales performance analysis identifies the difference between desired and actual performance. Understanding the different enhances employee handling and morale.
Improved customer relations
Better focus and decision making as a result of sales performance analysis boosts customer relations.
How to do a Performance Analysis
There are four elements:
1. Actual state identification
2. Desired state identification
3. Analyse the discrepancy
4. Come up with a solution
Not sure where to start with your performance analysis? Contact us today – our sales analysis adds value to your business.
