Sales trend is a methodology to understand sales results which helps in understanding the trends of the market over a specific period of time. Sales results are an indicative of the sales patterns followed by the customer over a time period. The time period can be short, average or long. Sales trend can be analysed by compiling the sales and employment over the time period against the financial reports.
Purpose of understanding sales trend:
• It compares the company against its peers and thus analyses the relative position of the company in the industry
• The company can do better business by following the trend .
• Better understanding of the business facilitates the company to plan its short and long term marketing strategies . Long term strategies can be done by using predictive modelling
• Customer retention
Sales trend is usually done by the process of customer segmentation. Customer segmentation is done on the basis of products, sales channels, geographic regions etc. Customer segmentation is done such that the customers in a particular segment have similar attributes. Usually customers with similar attributes have the same purchasing behaviour.
A typical sales trend includes the following :
• Sales change from the last time period
• Customer segments with the highest growth rate
• Customer segments with the highest revenue
• Customer segments with exponential growth rate
• Sales forecast and so on
Hence, this concludes the definition of Sales Trend along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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