Poor and unsatisfactory Sales Revenue is a common problem for businesses.  A weakness in Sales Revenue will normally contribute to unsatisfactory Profit levels.  Since all Profit starts with a Sale, fixing poor Sales is a good place to start any remedial work on your business. Yellow Belt

 First: Compare Sales Revenue Over Time

Looking at a single sales figure does not provide very much information.  It is much more useful to look at sales over two or more periods so that you get a trend in the direction your Sales Revenue is taking.

Although you can compare any two  or more periods you like, it is important to try to remove the effect of unusual movements in your sales.

When selecting the periods to compare, consider:

Go to the Diagnostic tools in the 12Faces TrendBoard range
These will give you a data template for your analysis.

Fix your poor Revenue: Use the data set you have developed and determine which of the following analysis steps apply.

Case 1: Same or Increasing Sales Volume but Less Revenue

If you are:

Often this comes about from applying discounts to buyers.  The idea is that the discounts will stimulate more than enough additional sales to compensate for the lower Revenue per sale.

If the discounts have not stimulated enough additional sales, consider reviewing your discount strategy.

Learn more by searching our KnowledgeBase for topics like discounts and pricing

Case 2: Static or Falling Sales Volume

In this scenario, your sales volume of products is either falling or static and unsatisfactory.

Begin by:

Depending on the state of your data collection tools, you may not have hard statistics on some of the issues raised.  Your intuition is likely to be “fairly” right and good enough to get you started, in some cases.

Based on your experience with this level of detail, we encourage you to invest in our TrendBoard tools designed to help with informed business decisions

Case 2.1 Common Reasons for Falling Sales

Consider the following and, where they seem relevant, search our KnowledgeBase for solutions

Case 2.2 Sales Volume to NEW Customers Static or Falling

This topic is a little more advanced as it assumes you have the tools in place in your business to measure sales to new buyers.

Your intuition may take you part way to a solution, if you don’t have the necessary recording systems.

Access the TrendBoard tools designed to help with informed business decisions

Consider the following and, where they seem relevant, search the KnowledgeBase for solutions

 Case 2.3 Sales Volume to EXISTING Customers Static or Falling

This topic is also a little more advanced as it assumes you have the tools in place in your business to measure sales to existing buyers.

However, your intuition may take you part way to a solution.

Access the TrendBoard tools designed to help with informed business decisions

Consider the following and, where they seem relevant, search our KnowledgeBase for solutions

What Next

Have some of the possible reasons for static or falling revenue listed above caught your attention?

Most likely there will be more than one reason, you are faced with the decision of what to work on first.

For more on how to master this dilemma:
Go to the article: Business Changes Planning: How to Choose Next Step

To find specific solutions to the issues you have identified, search the KnowledgeBase for solutions

Go to the 12Faces Dodeca catalogue: D1: How to Grow Revenue

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