A Sales Performance Analysis is a way of assessing where your business currently stands compared to where it wants to be in future. It uses industry businesses standards, performance, and other elements for comparison. It shows the gaps between the current state of your business and how it should be performing and 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?” clearly. As an organization grows, it loses track of some objectives and even relationships with customers and peers. That is why businesses need gap analysis: to put them back on track.
Importance of Sales Performance Analysis
A gap exists in three categories: business goals, people’s performance, and organizational capability. Although they can be differently prioritized with different approaches, conducting an analysis on them bears the following significance:
- Provides comprehensive overview of a business goals (actual and desired)
Analyzing 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 Sales Performance Analysis
There are four elements:
- Identify actual state
- Identify desired state
- Analyze the discrepancy
- Come up with a solution
Not sure where to start with your sales performance analysis?