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sales analysis refers to the technology methods and processes used to collect sales data examine it and identify the factors that can influence sales volume and growth management uses the metrics gathered from this analysis to evaluate sales performance set goals establish targets improve internal processes and forecast future sales revenue we can look at sales in different ways descriptive analysis tracks historical sales data data and Compares it to current sales activity to better understand the factors influencing sales revenue descriptive analysis is the most basic and straightforward approach to use it establishes a historical base for the sales data and sets The Benchmark for future growth it's recommended that you perform at least this level of analysis ideally businesses can use all types of sales analysis to better understand sales performance diagnostic analysis examin Sal sales data and asks why sales volumes were up or down in a certain period searching for factors that influence historical sales activity is an important step in accurately forecasting future sales volumes reasons for fluctuations in sales levels can be numerous if you noticed a decrease in sales it's possible this could be tied to a recent price increase or a competitor offering a discount on products similar to yours on the other hand sales increases may be tied to an effective marketing campaign or a price drop predictive analysis identifies patterns and Trends in the sales data and uses this information to predict future sales volumes it's often useful to employ additional statistical analyses at this stage to see if there's a correlation between certain economic indicators like gross domestic product or GDP and the producer price index or PPI various sources can provide forecasts of a large variety of economic indicators so if one is found to correlate with a Target variable it can be used to inform long-term forecasting finally prescriptive analysis uses all this information to recommend courses of action for the Future these actions are often related to sales and revenue but they may also be useful for improving internal processes providing additional employee training creating more focused and customized customer messaging and develop in more effective marketing strategies most businesses have some level of seasonality in their sales companies manufacturing bicycles or running shoes will see an upswing in their sales during the summer months other businesses such as ski and snowmobile manufacturers will do better in winter months it's important to consider seasonality in any type of sales analysis for example imagine you're a product manager for a popular line of ski jacket and you've been asked to develop a sales forecast for the next six months starting in March it makes sense to look at sales for the previous year to see where sales started to decline and adjust your sales forecast ingly using data visualization of historical sales figures can be helpful in recognizing how seasonality affect sales volumes likewise Regional differences can occur between sales in different parts of the country which can be depicted using a pie chart this can be especially useful for planning inventory in various parts of the country it's also useful to look at sales in terms of categories for example can you categorize your customers by type perhaps you manufacture office furniture and sell it to many organizations such as retailers private businesses hospitals educational institutions and the government you will likely develop different marketing strategies and messaging for each customer group monitoring them individually helps gain insight into how they can be managed sales analysis isn't a one- siiz fits-all formula while many companies may use the same types of analyses they'll likely apply them in ways that best fit the nature of their organization remember the nature of sales analysis stems from the ability to understand your customers and these tools are the mechanisms to do so congratulations you've now completed knowledge City's course on sales analytics in this course we introduce sales analytics and detailed the most important types of analyses we we also discussed how to implement these analyses in the most effective manner