Revnew Blog

What’s Are Sales Reports: Definition, Key Elements & Types

Written by Anisha Dutta | Sep 13, 2024 10:14:58 AM

If you're in B2B sales, you're no stranger to the day-to-day grind of dealing with competitors and driving actual growth. Getting caught up in the hustle and bustle of it all is easy.

However, if you want to stay ahead of the game, you need to take a step back and consider the big picture. That's where sales reports come in.

Beyond numbers, sales reports help you make informed decisions and refine your strategies. By tracking key metrics and activities over time, you can:

  • Identify trends
  • Spot opportunities
  • Adjust your approach

Whether you're analyzing sales activity reports or revenue forecasts, these reports provide the clarity and insights you need to UP your sales game.

However, creating an effective sales report is more complex than it might seem. You need to know what data to track, how to present it, and how to use it to drive real results.

In this blog post, we'll show you how to harness the power of sales reports in the B2B context. By the end, you'll understand how to use sales reports to take your sales strategy to new heights. So,

What Is a Sales Report?

A sales report is an essential tool for you and your team to track selling activities and monitor key performance metrics. 

Whether you're keeping tabs on the number of phone calls made or analyzing month-over-month (MoM) revenue growth, sales reports provide valuable insights to drive your decision-making process.

What Are Its Key Benefits?

Sales reports serve two primary purposes:

  • Track Individual or Team Activities: To evaluate performance, you can monitor specific selling activities, such as calls made, emails sent, or meetings held.
  • Monitor Higher-Level Metrics: To assess overall business health, monitor broader sales metrics, such as revenue growth, win rates, and average deal size.

While you may be responsible for compiling these reports, your sales manager will likely analyze the data and use it to guide strategic decisions.

What Are the Common Elements of a Sales Report?

When creating a sales report, you’ll typically include four key components:

  1. Defined Objective: Clearly state the report's purpose and who will use it.
  2. Summary of Data: Provide a high-level overview of the essential findings and insights.
  3. Section-by-Section Breakdown: Organize the data into relevant sections for a more straightforward analysis.
  4. Interpretation of Results: Explain the data's meaning and how it should inform your actions.

By incorporating these elements, you ensure your sales report communicates the correct information meaningfully and promptly.

How Can You Create a Sales Report?

Follow these steps to create a compelling and insightful sales report:

  • Identify the Purpose and End-User: Determine why you’re creating the report and who will benefit from it.
  • Decide on Relevant Data: Consider which metrics and activities are most important for your objectives.
  • Compile Necessary Information: Gather the relevant data from your CRM, spreadsheets, or other sources.
  • Present Data Clearly: Use tables, graphs, and charts to make the information easy to understand.

PRO TIP

CRM software is one of the best ways to streamline your sales reporting process. By storing your sales data in a centralized system, you can easily compile that information into usable reports. 

Many CRM platforms even allow you to create interactive sales dashboards, giving you real-time access to your key metrics and helping you stay on top of your sales performance.

Once you've created a sales report, consider these tips to enhance its effectiveness and ensure it provides valuable insights:

Use Sales Report Templates

Templates can significantly speed up the reporting process by providing a consistent structure. This saves time and ensures uniformity across your team's reports.

You can find samples of such templates in our article on designing sales reports. Feel free to modify the framework as per your organizational requirements.

Make Reporting Part of Your Routine

Incorporate report creation into your weekly or monthly schedule. By blocking out time for this task, you’ll avoid the last-minute rush and make reporting a manageable part of your workflow.

Provide a Summary and Recommendations

Include a concise summary highlighting the most critical data and offering actionable insights. This one-page overview helps your audience understand the key takeaways and the next steps.

What Are the Most Common Sales Report Types?

Various types of sales reports serve distinct purposes. Sales managers often request these reports to gain insights into performance and make informed decisions. 

Here’s a breakdown of the most common types of sales reports you might encounter:

1. Sales Activity Report

A sales activity report provides a detailed account of a salesperson's daily or weekly activities. By tracking these activities, you can assess how effectively time is being allocated without needing to oversee every interaction personally. 

This report answers critical questions such as:

  • Are you meeting your sales goals?
  • How productive are you in your daily tasks?
  • Are you using your time efficiently?
  • Which activities lead to actual sales?

2. Sales Call Report

The sales call report is a specific activity report focused on tracking calls made to potential clients. After each call, you should record the details in your CRM to monitor outcomes and performance. 

Key metrics to include in this report are:

  • Total number of outgoing calls made
  • The number of potential clients reached
  • Names of individuals spoken to
  • Duration of each call
  • Outcomes of the sales calls
  • Revenue generated overall and per call

3. Sales Forecast Report

The sales forecast report is one of the most widely used sales reports. It leverages data from previous months to predict future sales growth. 

Typically, you will prepare this report upon request, providing a forward-looking outlook that sales managers can analyze to set expectations and strategies.

4. Monthly Sales Report

The monthly sales report is crucial for evaluating your team's performance over a specific month. Often completed in the first week of the new month, this report summarizes the previous month’s sales figures and includes:

  • A detailed overview of monthly performance
  • Month-over-month comparisons for current and prior years
  • Insights for upper management to assess the current sales status
  • Explanations for sales outliers, which are often more evident in monthly reports than in annual summaries

Wrapping It Up

Sales reports are invaluable tools for tracking sales data and activities over time. While creating them may not always be the most exciting task, they are essential for your company’s long-term success. 

Utilizing CRM software and following best practices can streamline the reporting process and create easy-to-understand and act-upon reports.