How Lost Sales Analysis Will Benefit Your Business
As a company grows it is important to have as best an understanding of all aspects of the business in order to provide the best chance of growth. One area in which you can see stark data that can help you build a plan for the future is lost sales analysis. With the help of a professional provider of lost sales analysis you can build a plan to prevent or stop the leakage of sales. If you have recently seen a stalling of increased sales, or lower figures than you expected it is critical to undertake lost sales analysis to figure out the reasons behind the slump and to help you put a plan in place to reverse the negative trends.
A professional company will conduct a lost sales analysis using various methods of analysis, collecting and analysing figures from all sides to provide you with the most accurate set of data possible. This includes business intelligence and a measurement of your customers’ sales figures to determine whether there has been in fact any lost sales over the course of a set period of time that you would like to investigate. This approach helps you to see those customers that are wavering in returning to you to make another purchase, those who are likely to come back if certain changes are made but won’t for the time being, and those customers who are completely lost.
Once you have identified all of these different lost customer types the next phase of the process is to understand why they have been lost. This could be down to any number of factors, from a poor advertising campaign that has failed to reach the designated target market, a price point that is deemed too high, highly functioning competitors, or poor customer service standards from your company, to name just a few. If all you are seeing is a drop-in sales, you might never know what the root cause of the issue is; whereas with careful lost sales analysis you can find specific problems that allow you to improve the situation.
As soon as you know the reason behind a lost sale you can begin to work out how to resolve the issue. Customer loyalty will always drop if the quality of your customer service standards does. It is important to get on top of lost sales because as much as positive online reviews and word of mouth recommendations are great for business, an unhappy customer is likely to be much more vocal and get the negative message out to a wider number of people.
Once you have conducted a lost sales analysis in the first place it is good practice to undergo a regular lost sales analysis process. This can help you to accurately track how your company is performing and whether expectations are being met. It also helps you to signpost where and how recovery has been made due to changes implemented after the initial lost sales analysis. Find a professional lost sales analysis company to help you maximise the potential of your business.