Sales reporting is exactly what it sounds like, an analytical tool used to report and analyze the sale of a company used with the object of projecting the future course of work.
This is because having a track of sales through a sales projection report will enable the managers to track the past trend and help them replicate the successful sales or learn from the mistakes made in the past.
It is a process that basically lends insights into what contributes to the company’s success.
Who Needs Sales Reporting?
The manager of sales in an organization is the person who performs sales reporting with different definitive aims. A sales projection report helps better understand finances and simplifies financial planning. It also helps the report’s audience to track the time that the salespersons are spending with the client and if they are meeting their productivity goals.
How to Make a Sales Projection Report?
1. Determine the objective of the report
Determining the object of the sales report must be the first step, and this step will pave the way for all the following steps because a sales report can be of various kinds. The objective will determine the type of the sales report and the content and format of the report.
2. Identify the audience of the sales report
The needs of different people in an organization vary depending on the nature of their work. They are interested only in knowing information relevant to their work. Hence, identifying the needs of the audience is essential.
3. Gather the relevant data
Relevant information is the foundation of a good sales report. So, ensure that all the pertinent and relevant data within the scope of the sales report is included in it. Use the CRM system to put together the information for the sales report.
4. Determine the activities which will be the subject matter of the sales report
The subject matter of the sales report can be varied, depending on the object of the sales report. Some examples of the subject matter of the sales report include identifying if the team met the sales goal, comparative performance of the team, information on products and services making the most profit, sales projection, key areas of opportunities, and key challenges, among other things.
5. Define the scope of the sales report
The volume of the information available that can be shared in a sales report can be very high, and too much information will be neither relevant to the objective nor will the audience make sense of all the information. Hence it is important to limit the scope of the sales report to what is relevant and bring out the objectives of the sales report.
6. Include relevant information
Adding context to the numbers and figures by adding other relevant information is important because the audience can put the numbers into context. Remember while making the sales report that it is the responsibility of the person presenting the sales report that the report’s objective is met and comprehended.
7. Use the proper format for the sales report
Presentation is a key aspect of a sales report; hence a proper format must be chosen. The audience will also be a factor when choosing a format for the sales report. For example, something which might be considered relevant by a CEO might not be considered such by a CFO. A lot of graphs and infographics can be used to make the understanding and the presentation of the report early and seamless.
8. Perform an analysis of the sales report
A sales report is not just a presentation of numbers and facts; therefore, sales analysis must be performed and included. Sale analysis is the process of mining this data and evaluating it to provide insights. Such insights might include problems in selling and marketing, and sales forecast, among other things. The content of the analysis would depend on the object and the audience of the sales report.
A sales report is an essential part of sales management, and a sales report has a definite objective, catering to the needs of the audience, and must include relevant information in a proper format.
Sales reporting is used for various purposes like tracking sales rep activities, and the health of the sales pipeline, including information regarding deals, the progress of individuals and teams, and sales forecasting.
Some types of sales reports include promotional sales reports, joint sales reports, closed and won opportunities sales reports, which provide information about the sale deals that have reached the final stage of the sales cycle, daily call reports, and productivity reports.
The minimum requirements of information to be included in a daily sales report are the name of the representative, the names of the client, and the sales made. More detailed daily sales reports may include detailed quotas and objectives.