The commercial business reports and indicators are intended to expose information about the company to help elaborate manager strategies and decision-making.
Do you agree that management is one of the pillars of a business’s success? So reports and indicators can be seen as support tools for good governance. After all, they show, through numbers, how the company’s performance and health are going.
Do you know the importance of commercial reports and indicators for decision-making? Do you know the main pieces and how to create good sales reports? If you don’t know, don’t worry. Today’s post was written to clarify all your doubts on the subject.
How Important Are Sales Reports?
Sales reports are documents that provide clear and objective information about the company’s commercial situation.
“How many sales were made by a specific salesperson,” “what were the transport costs,” “how many sales were made through digital channels,” and “what was the total sales value by region,” in short. Reports serve to expose this and so much other information.
Why Use Sales Indicators?
Sales indicators are instruments used to measure salespeople’s performance. These key figures can also be inserted into the sales report, along with other data, and used in action planning.
Many think that commercial reports and indicators benefit the commercial team since the information in the document is related only to sales. But this is a misconception. Several areas can help.
Just think, if you have access to quality reports and indicators, your marketing team can more clearly assess which strategies have brought results and which ones need improvement.
Likewise, the financial sector can direct resources more intelligently, and accounts receivable have more control over what has been sold and what amount needs to go into cash. Interesting, isn’t it? The company as a whole benefits from the reports and indicators.
How To Create Good Sales Reports
Now that you know what business reports and indicators are and why they are essential, you must be thinking: “How can I create good sales reports for my company?” Well, you can follow the tips we separate below:
Tip 1: Use Only Relevant Information
To create a perfect business report, you need to be objective and use only relevant information. In short, there are several sales, average Tickets, best-selling products, customer acquisition cost (CAC), missing products, sales history, and performance per product sold. Define what data is essential and will help you understand the actual business situation.
Tip 2: Enter All Industry Goals And Deadlines
Establishing goals and deadlines is essential to directing the commercial team. But, more than that, it verifies that the sellers can fulfill all the purposes. Once you have access to this information, tracking each salesperson’s sales and progress will be easier. Also, identify errors that may be affecting performance.
Tip 3: Use Simple, Easy-To-Understand Language
Objectivity avoids confusion and misinterpretation. Therefore, use simple and easy-to-understand language in your reports so that people can understand, without delay, everything that is being said.
Tip 4: Show Current Data
There is no point in drawing up strategies and setting up an action plan based on outdated numbers. If you want to manage well and make bold decisions, you must ensure that the data in the reports are current and show the company’s actual situation.
Main Reports And Business Indicators
With the reports, you can manage the sales made by period and project future sales. In the same way, with the indicators, it is possible to identify more quickly which were the successes and failures in the service. But, which reports and indicators to use if they are too many? Below, see the main ones:
- Profitability analysis per representative: this model includes data that proves how much return a representative brought in sales.
- ABC Sales Curve: This model organizes customers in order of relevance. That is, those who purchased more products in a given period.
- Order entry by a salesperson: in this model, all sales made by each representative are entered.
- Sales cadence by customer: This report template shows how long it took a customer to move to the subsequent sales funnel stage.
- Average Ticket: this indicator provides the average value of sales per customer;
- Customer Acquisition Cost: CAC shows the cost that the company had to attract a customer;
- Life Time Value (LTV): is the value a customer returns over time;
- Sales cycle: shows the period it takes the company to close a deal, from customer acquisition to purchase;
- Conversion rate: is an indicator used to measure sales results in a given period;
- Contribution Margin: This indicator provides how much the sale of a product will contribute to covering all the company’s costs.