There is a good chance that you already know how important sales analysis is to the progress of your small business. But knowing where to start is another thing.
Some small business owners think that sales analysis is only beneficial to larger corporations while others think their customer base is too large for an accurate sales analysis. But the fact remains that proper sales analysis offers no end of benefits to companies of all sizes.
Sales analysis and sales forecasting inventory tools can provide detail on the quality of your professional performance, your product and even how your target demographic is receiving your business. Understanding how these particulars play into your overall success is essential to creating actionable plans that will lead to greater business success.
Following are some of the specific types of data provided by cutting edge inventory management software and sales forecasting inventory tools.
Actual Sales Data — Obviously, this are the stats on sales over a given time. Careful study will reveal important insights into seasonal sales projections, sales spikes and even the results of various sales campaigns of marketing efforts. These have to be appraised and readjusted for greater efficacy in the future and this is where you will get those vital benchmarks.
New vs. Repeat Customers — This is not just the number of customers who return. This data can reveal important details on specific groups that have higher rates of return or specific channels or locations that are seeing this success. This is especially important for small businesses that work with very large and varied customer bases and nee specific information on products and demographics.
Product Demand — This data is not just about which products are flying off the shelves and which are not. It can provide insights into the popular products that are suddenly in decline. Could it be that your competition is offering the same quality at a lower price? Has your latest marketing campaign been taken in the wrong way? Keeping an eye on the slightest fluctuations will allow you to make restitution before it is too late
Estimates of Market Prices — This is not the most applicable for every business but knowing how the prices of your products are affected on a national level can help you make illuminated marketing and sales choices. This is primarily advantageous to the real estate and automotive industry but has applications in other fields, too.