Plain and Simple: Bright Business Insights Summer 2017 | Page 7

USE SALES INFORMATION TO DRIVE YOUR BUSINESS’S PROFITABILITY
Taking a look at your customers isn’t merely a matter of figuring
out what they are buying and how much you have sold to
them. The information you can gain by analyzing your sales
information also serves as a barometer that can be used to help
manage your business’s cash flow, drive management decisions
and improve your company’s overall profitability.
To be effective in your sales efforts, you should always take time
to assess your customer base as well as your sales numbers by
product line to identify valuable opportunities that could result
in continued growth. During your assessment, ask yourself the
following seven key questions to identify opportunities and
overcome potential challenges.
Know More, Grow More
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Does the customer require special pricing and terms?
Does the customer pay within the required terms of the
contract, or are they habitually late?
Does the customer require sales support and other services
that could be considered above and beyond what you are
currently compensated for?
How does the product line that is currently being sold to the
customer compare to other products that may be available
and does the gross margin make a positive contribution to
the overall business gross margin?
What sales and product mix will provide the best gross
margins, while making the best use of your company’s
inventory and manufacturing capacity?
How much does it actually take to acquire a customer?
What is your existing customer retention rate?
Once you have compiled the answers to the questions presented
above, you’ll be able to look at your sales in a different way,
which will allow you to drive your management-level decisions
more effectively. With this knowledge at your fingertips, you
will ha