Definition of a Sales Analysis

by Neil Kokemuller; Updated September 26, 2017

Sales analysis is the process of comparing your actual sales to previously stated company objectives. It is a measurement process used by organizations to evaluate sales effectiveness and consider improvements.

Identification

Sales analysis is used to analyze various aspects of a company's sales. It can be used to compare sales force performance against quotas, evaluate sales by product type and make determinations for bonuses and incentives.

Trend Analysis

Trend analysis is a closely related concept to sales analysis. Firms monitor trends for costs and revenues. Monitoring trends in sales force performance and sales of product types helps companies make adjustments, or eliminate under-performing staff or products.

Benefits

Benefits of sales analysis are most connected to the bottom line. Monitoring under-performing staff and products helps companies avoid wasteful spending and replace poor revenue drivers with better performing people and products.

About the Author

Neil Kokemuller has been an active business, finance and education writer and content media website developer since 2007. He has been a college marketing professor since 2004. Kokemuller has additional professional experience in marketing, retail and small business. He holds a Master of Business Administration from Iowa State University.