sales report analysis and recommendation
TRANSCRIPT
SALES ANALYSIS AND
RECOMMENDATIONSBy
Judd Humpherys
See Spread Sheet for Detail Data Analysis
ASSUMPTIONS #1
For this analysisA major customer is defined as any company that generates $30,000 or more per year in annual revenue.
Bottom Line Sales Trends BOTTOM LINE SALES TRENDS
TRENDS #1
Bottom Line Sales Trends BOTTOM LINE SALES TRENDS
3.8% between 2011 and 2012
17.9% between 2012 and 2013
The company is losing revenue
Bottom Line Sales Trends BOTTOM LINE SALES TRENDS
TRENDS #2
Bottom Line Sales Trends BOTTOM LINE SALES TRENDS
Accounts lost in 2011 – 7 (lost revenues - $1,487,482)
Accounts lost in 2012 – 12 (lost revenues - $1,743,720)
Accounts lost in 2013 – 1 (lost revenues - $65,243)
The company is losing major accounts to competition:
Bottom Line Sales Trends BOTTOM LINE SALES TRENDS
TRENDS #3
Bottom Line Sales Trends BOTTOM LINE SALES TRENDS
From $34,304 to $21,110 over a 4 year period.
That is a decrease of 38.46%.
The average annual revenue from new major accounts decreased:
Bottom Line Sales Trends BOTTOM LINE SALES TRENDS
TRENDS #4
Bottom Line Sales Trends BOTTOM LINE SALES TRENDSThe purchase of 75% of the top 109
customers has decrease
00.5
11.5
22.5
33.5
44.5
5
Bottom Line Sales Trends BOTTOM LINE SALES TRENDS
TRENDS #5
Bottom Line Sales Trends BOTTOM LINE SALES TRENDS
Major accounts acquired in 2010 – 14
Major accounts acquired in 2011 – 14
Major accounts acquired in 2012 – 3
Major accounts acquired in 2013 – 0
The company’s ability to acquire major accounts has decreased:
We Must Fix This Trend Immediately
2010 2011 2012 2013 YTD 2013 Run Rate
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000 $34,304 $35,212 $33,768
$15,832
$21,110
Average Annualized Revenue Contribution Per Newly Acquired Customer
Average Annu...
Major Customer Thresh-old
No New Major Customer in 2013
New Major 14 14 2 0 major customers recruitedCustomers
WE MUST FIX THIS TRENDS IMMEDIATELY
We Must Reverse These Trend NowWE MUST REVERSE THIS TREND NOW
2010 2011 2012 201302
4
68
10
1214
16
18
01
13
17
Customers lost
Customers lost
We Must Reverse These Trend NowWE MUST REVERSE THIS TREND NOW
2010 2011 2012 20130
5
10
15
20
25
0
23
5
2
Customers added
Customers added
We Must Reverse These Trend NowWE MUST REVERSE THIS TREND NOW
2010 2011 2012 20130
5
10
15
20
25
01
13
17
0
23
5
2
Customers lostCustomers added
The trends show the business is loosing customers, not able to attract new customers, and not able to retain existing customers.
2011 2012 2013(P)
-20.00%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%17.12%
-3.81%
-17.91%
Sales trend Y-oY
Sales Trend Year on Year BasisSALES TREND YEAR ON YEAR BASIS
Trends - Top 20 Customers (70% of sales)
2010 2011 2012 2013(P)0.00
1000000.00
2000000.00
3000000.00
4000000.00
5000000.00
6000000.00
7000000.00
Total SalesSale from top 20 Customers
National Freight Growth Rate is approximately 4.6%
Sales Trending Down
TRENDS – TOP 20 CUSTOMER (70% OF SALES)
GENERAL OBSERVATIONS #1
5 Customers contribute 39%
of sales
20 Customers contribute 75%
of sales
31 Customers contribute 80%
of sales
52 Customers contribute 90%
of sales
76 Customers contribute 95%
of sales
109 Customers contribute 98%
of sales
317 Customers make up 100% of
sales
GENERAL OBSERVATIONS #2
Lost 9 customers who were among the top 20
Lost 22% of sales due to 4 of those 9
customers
Lost 10% of sales due to 3 of those 9
customers
Lost 5% of sales due to 2 of those 9 customers
Total lost sales from those 9 customers was
37%
Only added 3 new customers between
2010-2013 whose contribution
was among the top 20
GENERAL OBSERVATIONS #3
The Sales increased due to new customers
was mere 4% out of top 20 in 2013
Lost major contributors during last 4 years and unable to replace them with new customers.
28% of the top 109 customers stopped
purchasing from company
About 20% of customers reduced
their purchase by 75% on average by 2013
14 customers who contributed 25% of
sales ($1.42 million) are no longer with
company in 2013.
SOME QUESTION TO ASK
Is the company building relationships with freight brokers & agents?
Is the company using load boards, like DAT and Internet Truck Stops?
Is the company incentivizing its drivers to find business?
Does the company have a customer retention program in place?
Is the company targeting specific major accounts?
Has the company identified any major accounts to target?
Does the company have a CRM program in place to build and track sales calls and relationships?
CALL TO ACTION
I never identify a problem without recommending solutions and
suggesting the ones I think WOULD WORK THE BEST.
Call me if you would like to discuss my thoughts on potential solutions
to these sales issues (801-360-1628)