How to Create a Sales Analysis for a Sales Company

If you're in business, you know that business is all about sales and marketing. Like anything else, measuring sales is the first step to making significant improvements, but what comes next? Gap analysis is commonly used to create sales analysis for sales companies. It is the process of visualizing the end state (or desired state), and then taking steps to close the gap between where you are and where you want to be.

Instructions

1. Review the existing sales policies, procedures, and standards for the sales strategy of your business.

2. Create a current state map, which is a visual representation or flow chart of the current sales process.

3. Define the scope of the analysis. Determine if you want to analyze the entire sales process or just a particular segment.

4. Develop an ideal "end state." That is, where does management want sales to go? Interview the sales staff for insight on the process. Ask for input on how to drive and motivate sales.

5. Develop a plan of action to close the "gap" between the current state and the end state. Include a timeline and at least 3 metrics to measure improvement. Common sales analysis metrics are sales growth (both year-over-year and month-to-month), sales per employee, gross margin (sales minus costs of good sold divided by total sales), operating margin (operating income divided by total sales), and net profit margin (net income divided by total sales).

References

• Sales Force Benchmark Gap Analysis