The sales function is one of the most critical areas in the business organization that requires continuous analysis and performance improvement. If the business intend to grow and succeed in today’s ever-competitive and ever-changing market environment, then the sales manager should constantly keep track of their sales metrics to ensure that all their efforts are paying off, problem areas are being addressed, and opportunities are being leveraged.
Surprisingly, many companies don’t pay enough attention to managing this critical area. Many companies – both fresh start-ups and established firms – have invested in cutting edge procedures and systems to their production, manufacturing, administrative, financial, and logistics department.
Yet for some reason, the sales function and sales management department have not been improved with the same level of vigor and scrutiny. Far too many business owners tend to look at the sales function of their business as a mysterious plane that should be left as it is. As such, the selling function is often the last aspect that gets analyzed and improved during business evaluations.
Compared to these businesses, successful companies treat their sales function as a numbers game. They implement a strategic approach in measuring and analyzing their sales performance by conducting what is called sales performance analysis. Even though the term sound quite straightforward, its implementation can provide a wide range of benefits not only to the sales of the business but to the overall organization as well.
Sales performance analysis is the process of determining where the company currently stands vs. where it needs to be. It takes into consideration several data sources which describes the present sales performance of the business i.e. data in the CRM, and then compare those numbers to the actual short-term and long-term sales goals of the business.
To know more about the benefits of conducting sales performance analysis, check out the infographic below from KONA Group.