How to Perform a Sales Analysis (Step-by-Step): Methods & Metrics

Want to achieve your sales goals? Then you have to kiss guesswork and intuition goodbye. Instead, get cozy with regular sales analysis to generate cold, hard data for your team.

Of course, wanting to go steady with data and actually making it happen are two different things. To make it a reality, you have to know what sales analysis is, why it's so beneficial to sales teams like yours, and how to analyze sales metrics and KPIs for your sales strategy.

Keep reading to learn everything you need to know about sales data analysis. That way, you can boost performance—for you and your team—and capture that elusive jena se qua that will turn your competitors green with envy. Let's do this!

What is Sales Analysis?

It's pretty simple: sales analysis is what happens when sales professionals monitor sales data in order to evaluate sales team performance. Doing so can uncover insights about:

  • Top-performing products/services
  • Underperforming products/services
  • Customer behavior and retention
  • New sales and market opportunities
  • The future outlook of your sales team

When done right, sales analysis can help you run a more efficient and effective sales department now and in the future.

Curious about the total contract value? Hey there, our article holds the answers.

How Often Should You Perform a Sales Analysis?

Worried you'll come off too strong? You don't want to look desperate. How much is too much? Luckily, the quickest way to sales analysis heart is to spend quality time with it.

In other words, check in regularly. How regularly depends on the sales metrics you need to track, your overall performance, and the type of sales reports you're analyzing.

Your sales goals can also impact how often you should perform sales analysis.

In general, expect to track overarching metrics like net sales and/or deal size on a monthly basis. More specific metrics, like calls or emails sent, should be tracked on a shorter-term basis. Remember to monitor seasonal changes and YoY metrics, whatever your cadence.

What is Included in a Sales Analysis?

Better said: what isn't included in a sales analysis?

Ultimately, what you decide to include in your sales analysis report will depend on your goals. Here are some ideas:

  • Sales activity volume
  • The ratio of new leads to qualified leads
  • Information about your pricing structure
  • Data on your social media campaigns
  • Current sales trends
  • Revenue and costs for a specific period

Along with these things, a clear sales data analytics report will show you what to do with the information. Specific action steps are a vital piece of sales analysis, meaning you can do more with the information you've gathered. Moreover, explore Google Sheets alternatives that may better suit your sales analytics needs, providing enhanced functionalities for improved data management.

What is Sales Analysis Useful For? 4 Irresistible Benefits

Why should sales managers get serious about sales analysis? Two words: the benefits!

Seriously, if you want to see how your team performs against its sales goals—throughout the entire sales cycle—you need to monitor the specific metrics that pertain to them.

They may have unmet demands that will streamline your business processes and benefit you in the long run, including outsourcing needs that cover 3PL warehouse management, manufacturing, offshore or onshore, etc. This is one of the reasons why those metrics must be monitored.

Once you do, you can make better decisions, understand market trends, boost company profits, and improve customer satisfaction. Let's take a closer look:

  • Make better decisions: Sales analysis will reveal the real-time success of your sales plan. You can use this information to build a better, data-driven approach.
  • Understand market trends: It doesn't matter what you're doing—launching a new product, planning inventory, etc. A sales analysis report will help you uncover hot market opportunities and must-know trends to maximize your efforts.
  • Boost company profits: Top sales reps spend more time talking to high-quality leads. Sales analysis will help you identify the best prospects so your team can close more deals. It will also reveal information regarding your non-customers, which can be used to sharpen your sales pitch and personalize future marketing strategies.
  • Improve customer satisfaction: Sales analysis will help you understand what customers want and why they buy. These details can be used to forge deeper bonds with your target audience, leading to more upsell and cross-sell opportunities.

Does the idea of sales analysis have you hot and bothered? Great! Now, I'll show you a proven, four-step process you can use to analyze the metrics and KPIs that matter to you.

How to Perform Sales Analysis: A 4-Step Process

You're ready to take the plunge and generate your sales analysis report—but how? Follow this four-step process, and you'll have sales analysis wrapped around your finger quickly!

Step 1: Choose the Right Sales Analysis Method

Different sales analysis methods will allow you to generate various kinds of reports. So, before you do anything else, choose a method that aligns with your sales goals.

Here are seven specific sales analysis reports you need to know about:

  • Sales trend analysis: This type of sales analysis looks for patterns in sales data. Use it to track your team's progress toward its goals while understanding sales patterns in specific products, customers, and/or geographies.
  • Sales performance analysis: Sales performance analysis is crucial for effective sales performance management. This type of analysis will help you gauge your sales team's performance and evaluate the overall effectiveness of your sales strategy. Utilize it to compare actual results to expected outcomes and make necessary adjustments. Implementing these changes can lead to faster closing times, increased win rates, and a significant boost in revenue growth. (Dive into the world of CRM and its pivotal role in driving revenue growth.)
  • Predictive sales analysis: This type of sales analysis is designed to help you predict future risks and opportunities. Use it to create accurate sales forecasts.
  • Sales pipeline analysis: This type of sales analysis will help you discover common sales activities prospects go through before they convert. As such, it will give your sales team the context to shorten sales cycles and close more deals.

How to Perform Sales Analysis - Choose the Right Sales Analysis Method
  • Product sales analysis: This type of analysis is perfect for large companies and/or companies with extensive product offerings. It helps them determine which products actually affect their bottom lines. Use it to understand your company's demographics better, pinpoint popular products, and the like.
  • Prescriptive analysis: This type of sales analysis will empower your sales reps with knowledge, helping them determine which opportunities to pursue and which to dump like radioactive waste. Use it to increase rep success and team-wide win rates.
  • Market research: This type of sales analysis may seem old-fashioned, but it's never gone out of style. To use this technique, survey your customers, research your competitors through web scraping (a technique that automates the process of extracting data from a website) using curl proxy for greater efficiency and reliability, and read general sales statistics. Once you do, you'll better understand your customer's needs, thereby improving your sales effectiveness.

Step 2: Identify the Specific Information You Need

You've chosen the perfect sales analysis method. It just seems to get you and the sales goals you want to achieve. Congratulations! But your work is far from over…

Now, you need to identify the specific bits of information you need. For example, you might want to measure the impact of your sales training efforts. Or find the top-selling product from a recent marketing campaign. Or determine similarities between repeat customers.

When you know what information you need, you can choose metrics and KPIs to help you acquire, track, and measure it. We'll discuss this a bit more in the next section.

Before we get there, though, we need to talk about timing. What time frames should you collect data for? The answer to that question will depend on the metrics you're tracking, but weekly, monthly, quarterly, and yearly periods are common.

Remember that consistency is essential, regardless of which metrics you monitor. With that in mind, we plan to conduct an analysis more frequently during special promotions.

Step 3: Choose a Sales Analysis Tool and Analyze Your Data

Your sales analysis efforts are going strong! To keep them that way, invest in an analytics tool to help you get the most out of every metric you decide to track. Here are a few ideas:

  • Spreadsheets: You gotta love the classics. A spreadsheet tool like Microsoft Excel can help you analyze and interpret your sales data. Just ensure you have sufficient quantity and quality of data before you start. If you don't, you won't be able to make informed decisions that propel your company forward. (Note: sidle up on these report templates to make spreadsheet reporting easier!)
  • CRM software: Every sales organization needs a CRM. How else will you store contact information, automate email sequences, and view sales pipelines from one dashboard? Newsflash: your CRM tool can also be used for sales analysis. If you use Close, for example, you can quickly generate reports for any metric or KPI, including detailed pipeline and funnel reports, which will help you with sales forecasting.
  • Sales analytics apps: Some tools are entirely dedicated to sales analysis., for example, will help you analyze sales calls and pinpoint areas of improvement. will help you report on customer interactions and forecast future sales. And Seismic will help you calculate the effect of your sales enablement efforts.

At the end of the day, choose the sales analysis tool to help you accomplish your goals. Look for substance, not style. We all know you'll make better business decisions with the right data analytics tools in your toolbox.

Step 4: Share Your Results with Relevant Stakeholders

Last but not least, you need to present your sales data analysis to key stakeholders.

Unless you’re asked to share the process by which you arrived at your results, only show the main findings. You can use graphs and visuals to help your audience interpret the data. Additionally, employing tools like the revenue growth calculator can be instrumental in visualizing and comprehending complex sales data effectively.

For example, if you lead a sales team and want to share information regarding team performance with your CEO, you might want to include charts around your sales goals, your best-selling products, and your team's revenue and expenses.

Overall, your sales analysis presentations should share actionable insights and be easily understood. They should also end with recommendations to help accomplish this goal.

How to Perform Sales Analysis - Share Your Results with Relevant Stakeholders

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Choosing the Sales Analysis Metrics and KPIs That Matter

At this point, you know exactly how to perform an in-depth sales analysis—follow the four-step process above. Now, you need to choose a few KPIs to monitor.

Here are ten metrics you'll probably end up tracking at some point. This is not an exhaustive list of KPIs. If you want that, check out this article when you're done with it.

1. Monthly Sales Growth

This metric will give you the juicy details on your overall sales revenue. Is it going up, going down, or holding steady? Knowing this will help you better optimize your sales processes.

How to calculate it: (Current month’s performance - Previous month’s performance) / 100

2. Sales Opportunities

This KPI will tell you about the opportunities your sales reps create. It can be used to determine good and bad-fit prospects, which makes it useful for sales prospecting.

How to calculate it: Count the total number of opportunities your sales team creates within a specified period, such as one month, one quarter, or one year.

3. Lead Conversion Rate

This metric will help you understand why and how leads are converted. You can then use this information to design a foolproof customer acquisition plan for your company.

How to calculate it: (Number of leads that converted into opportunity in a given period) / (Number of leads created in this period)

4. Average Conversion Time

This KPI is all about productivity. Track it to determine how long leads can convert into paying customers. You can combine it with other metrics, like lead conversion rate and total sales opportunities, for a handy bird’s eye view of your company's sales pipeline.

How to calculate it: (The sum of all lead conversion times within a specified period) / (Number of lead conversion times included in that period)

5. Monthly Onboarding and Demo Calls Booked

This metric will help you understand the health of your sales funnel. Prospects who make it to the demo and/or onboarding stages of your funnel are likely to convert.

How to calculate it: Count the number of onboarding and demo calls booked in a time period

6. Pipeline Value

This KPI will tell you the revenue you can expect to generate from the sales opportunities in your department's pipeline within a specific time frame.

How to calculate it: (Value of projected sale) x (Percentage of confidence they will close.)

7. Sales Targets

This metric will share historical data regarding team performance. Want to know the amount of revenue generated or the number of product subscriptions sold? This metric will help.

8. Customer Lifetime Value (CLV)

This is an extremely popular KPI—with good reason. Track it to learn how much revenue the average customer generates for your company during their lifetime based on the average deal size and how long your customers stay with you. Then, use it to predict future revenue, make informed decisions about customer acquisition, etc.

How to calculate it: (Average revenue per user) x (Average customer lifetime)

9. Calls and Emails Per Rep

This metric tells you how many calls and emails your sales team makes daily, weekly, and monthly. It can be used to evaluate productivity and identify broken sales funnels.

How to calculate it: Tally up the total number of calls/emails your sales team makes within a specified period of time.

Want to amplify your sales results? Dive into our comprehensive guide on the best sales productivity tools available.

10. New and Expansion Monthly Recurring Revenue (MRR)

These are essential metrics for SaaS companies because they tell them how much revenue they generated this month compared to last month. Brands can then use this information to determine the effectiveness of their sales and marketing teams and help minimize churn.

How to calculate these two metrics:

New MRR = (New customers) x (MRR per new customer)

Expansion MRR = [(Expansion MRR at the end of the month – Expansion MRR at the beginning of the month) / Expansion MRR at the beginning of the month] x 100

Fall in Love with Sales Analysis

Sales analysis reports create accountability, reveal insights about one's customer base, the specific traits top-performing sales reps have… Honestly, they have the power to revolutionize your entire sales and decision-making processes, which is why they deserve your unending love and devotion.

The question is, which tool will you use to generate said reports? Here's my advice: choose Close. Our top-rated CRM platform has all the tools you need to create custom reports and monitor specific KPIs. Even better, you can try it with this 14-day free trial before buying it.

That's right, I'm not asking you to put a ring on our hand just yet. Take us out on a date, see what we offer, and then decide if you want to spend the rest of your life with us. (Or at least the rest of your sales career.) Something tells me we're a match made in heaven!

I want to try Close for free for 14 days. (Say YES!!!)

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