summarizes the sales activities of a company
A sales report, also called a sales graph report, is a graphical document that summarizes the sales activities of a company over a period of time. This graph report typically contains data on sales volume, accounts, new accounts, costs and revenue for a given time. Sales reports are used for various purposes such as setting performance goals, comparing past performance to future results, planning for changes in business, forecasting growth and assessing the current profitability of a company. Sales reports are therefore an indispensable tool in every organization. However, not every form of sales report is the same.
Sales reports are usually two-sided and are available in different types. One-side reports include historical sales data, whereas two-side reports give more recent sales data. Different types of reports can be analyzed by any of the following methods. These include the continuous record system or the semi-annual activity-based method.
keeping track of the daily sales report
Continuous records systems are designed for tracking customer relationships. These records are maintained daily, weekly and monthly. By keeping track of the daily sales report and all the data related to customer transactions, the sales rep can analyze trends and changes in behavior that may affect their ability to close new sales. Sales reports based on the continuous record system may not provide enough information, therefore, other data sets must be obtained from other sources such as a supplier, joint venture, dealer and international markets. Sales team members can use these other data sets to supplement the daily sales report in order to make it more useful to their tasks.
The semi-annual activity based method of analysis has a lot of limitations. Sales managers must compile reports based on different months of the year. This means that one cannot take previous periods into consideration when preparing a report for the next period. Sales representatives cannot make use of previous periods’ results to analyze a current period’s performance since sales reps cannot draw conclusions from previous periods’ results. Sales managers must wait for the completion of the next period before analyzing previous periods.
determine the strength of a marketing position
Sales managers cannot make use of past period results when trying to evaluate a sales team for the next quarter. Sales representatives cannot make use of customer relationship data to determine the strength of a marketing position during a certain time period unless the customer relationship data is compiled for that specific time period. Sales team members cannot make use of past sales targets to measure potential for the next quarter’s sales targets since sales targets cannot be accomplished with each and every period in a company’s operation. Sales managers should take time to determine which aspects of the business need to be analyzed. Once these aspects have been determined, the manager needs to choose the right sources to gather the necessary data.
Sales Reports can be used by sales representatives in many different ways. They can provide valuable information to the management in the form of reports, data, charts, graphs, or interactive media presentations. They can provide important data for future planning purposes since monthly reports give the managers a concise overview of the current sales situation. Sales reports are often referred to as Customer Relationship Management (CRM) software. A CRM software package can be used to help companies organize, track, and evaluate customer data and provide insightful reports to the management. Sales reports are essential for every organization to effectively manage its sales, products, and services.