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Methods of sales analysis

Posted: Sun Dec 22, 2024 8:31 am
by subornaakter10
Analysis methods are mathematical and statistical tools for operational sales management. They help organize information and get a full picture of the processes. Here we will look at three methods that can be used in marketing.

ABC analysis
This method of analysis in sales management helps to determine the efficiency of resource allocation. In this case, all transactions are taken into account. ABC analysis is based on the mobile phone number database australia Pareto principle. When applied to customers, it can be interpreted as follows: 20% of customers provide 80% of revenue. These are the consumers that are important for the company. The remaining 80% of customers bring only 20% of profit.

Based on this information, a table is generated:

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Buyer category Level of significance Part of the proceeds
A Tall 80%
B Average 15%
C Minor 5%
This method can be used to analyze sales vectors and product lines. ABC analysis can help optimize business. Based on its results, we will see that 80% of sales will come from 20% of products and 20% of sales channels. To get an objective picture, the study should take into account a long period of time.

After conducting the analysis, you can choose one of two paths:

Focus on products and sales channels that bring in more profit and abandon unprofitable ones.

Increase the importance of less profitable vectors, products and consumers if they are key to the business.

The decision depends on the specifics of the case and the characteristics of the sales management system.

SWOT analysis
This is a universal method that can be used by any company. It is quite simple and studies four factors at once that influence the main points of sales management.

SWOT analysis

S (Strengths) – the strengths of an organization or product.

W (Weaknesses) – weak points that can be influenced.

O (Opportunities) – favorable factors over which the company has no control (changes in the market or in the state that have a positive impact on business development).

T (Threats) – risks and threats that you have no control over. You cannot prevent or change them, but you can adjust them to reduce the damage. These include tax increases, tougher changes in legislation, epidemics, etc.

This information allows you to reconsider your company's tactics, implement new approaches to sales management and abandon outdated methods.