Sales Analytics 101 [+ How to Run Your Own Sales Data Analysis!]

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If you’re like me, you probably shudder at the mention of “sales analytics.” Sorting through tons of numbers? No, thank you, I’ll pass. While sales analytics may seem scary and complicated, we’re here to put your fears to rest and confirm that it’s not as intimidating as it sounds.

Analyzing sales data is an important part of running a business because it provides valuable insights, like sales and industry trends, that can help you improve your business’ sales and boost your team’s productivity.



Read on to learn what sales analytics is and how you can run your very own sales analysis with ease.

Did you know WebFX is a Google Premier Partner? It’s true! This doctor database means we’ve got the inside scoop on the best Google tools, like their sales analytics software, Looker! Learn more about how you can partner with WebFX and take advantage of Looker for your next sales data analysis by giving us a call at 888-601-5359 or contacting us online today.

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What is sales analytics?
Sales analytics refers to the process of gathering valuable insight from sales data and other key performance indicators (KPIs) to help forecast future sales, determine why certain sales trends occur and recommend plans of action to increase sales.

The goal of sales analytics is to simplify and make sense of the countless sales data points that your business collects. With this data, you can gain a better understanding of how your business and team performs and identify opportunities to improve your sales.

9 types of sales analysis
There are nine main types of sales analysis methods, each of which is directed toward uncovering different insights about your sales data:

Sales trend analysis: This sales analysis method helps to find patterns in sales data over a specific period of time.
Sales performance analysis: With this method, you can gauge the effectiveness of your sales strategy and how well your sales team performs.
Predictive sales analysis: This analysis method can help you forecast future sales based on your current and previous sales. You can also use it to identify potential sales opportunities and risks.
Sales pipeline analysis: With this method, you can gain a better understanding of how, why, and when prospects enter your sales funnel.
Product sales analysis: Perfect for in-store and ecommerce businesses, this method looks at the sales performance of your products, like which ones are top sellers and which ones are underperforming.
Sales effectiveness analysis: This sales analytics method looks at the performance of your sales team and helps identify selling opportunities and ways to improve productivity.
Diagnostic analysis: A diagnostic analysis is used to gain insights into different aspects of your sales operations. This way, you can identify internal elements that hinder your team and find ways to improve them.
Prescriptive analysis: Like predictive analysis, this method involves considering current trends to determine how to handle different scenarios.
Marketing research: Businesses should always set some time aside for market research. Learning about your customers by reaching out to them and analyzing your competitors can help you develop more effective marketing and sales strategies.