Recently, a client posed a powerful question: "How do I believe my company's sales reporting?" This isn't an uncommon dilemma. Many businesses struggle with either an overwhelming amount of data or a lack of reporting altogether, leading to internal inconsistencies and debates over the 'true truth'.
The purpose of any report, whether it’s compiled from your CRM, ERP system, or a manual spreadsheet, is singular: to guide decisions and change the course of action. If your reporting isn't guiding decisions, it's just creating unnecessary work.
To ensure your reporting is useful, focus on two foundational questions:
What decisions might we need to make? The information must allow you to identify what needs to change to improve the numbers and follow your original strategic roadmap.
How frequently do you need to see this data, and at what level of detail? Some stakeholders will need high-level overviews, while others require a granular daily or weekly deep dive.
Once the foundations are set, your reporting dashboard must incorporate the following three critical elements to become your definitive North Star:
1. The Clear Picture Against Plan (The Pin in the Map)
Your report must give you an honest, clear picture of your current position against the original sales strategy. This isn't just about the final sales number—it's about tracking how you planned to achieve that number.
You need a singular source of truth—a 'pin in the map'—that everyone agrees upon. This allows you to identify where the variances are and why you are ahead, behind, or on plan.
2. Activity Metrics (Measuring the Needle Movers)
We must move beyond only tracking lag indicators like pipeline value. The second element is tracking the specific activity metrics that truly move the needle in your sales algorithm. In today's nonlinear sales world, measuring activity based only on the number of phone calls is rarely productive. You need a deep dive to figure out the measurable behaviours—such as number of proposals live or weighted pipeline value—that drive your specific business output.
3. Trends (Gaining or Losing Traction)
The final element allows you to measure movement over time. If you’ve made decisions to reallocate resources, change tactics, or improve skill sets, you need to see the result. Tracking trends answers the crucial question: Are we gaining traction or losing it?. Trending the data over time ensures you can proactively adjust your course, leading you toward the sales and profit margins you aspire to achieve.
By implementing these three elements, you move beyond confusing data to establish a strategic, reliable, and believable sales reporting system.
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