Sales Analysis

When it comes to sales, the crucial topic of customers can inevitably be involved. In customer analysis, the Pareto Analysis, also referred to as the 80-20 rule, is a classic approach. In simple terms, this principle suggests that a significant portion of your contributions may stem from just a small fraction of your customers.

Specifically, 80% of your company's sales or profits often come from the top 20% of your customers. Through the Pareto Analysis, you can verify whether a particular case aligns with this scenario. If the verification is successful, you can further analyze the gross profit margins of these major customers to identify potential issues and make necessary adjustments. This analytical method helps you gain a more precise understanding of the core of customer contributions, thereby optimizing sales strategies and enhancing overall performance.

You can refer to the following content for document learning.

The Pareto Analysis will not be elaborated on separately here since the FineBI document offers a detailed explanation of the Pareto Analysis. For details, see Pareto Chart.

Pareto Analysis Verification

After conducting the Pareto Analysis on sales revenue, you can see that approximately 80% of the company's sales come from the top 20% of the company's customers, which shows that the Pareto Analysis is also applicable to the company, as shown in the following figure.

Top Customer Analysis

After conducting the Pareto Analysis, you have identified the top customers of the company. Now, you will find out the common issues among these top customers and present the details of these issues. This approach can help you more accurately pinpoint and address underlying problems.

Customer Analysis

First, conduct a key indicator analysis on customers.

1. Select Group Table in Chart Type.

2. Drag Customer Name into Horizontal Axis, and drag Sales Revenue, Sales Cost, Gross Profit, and Gross Profit Margin into Vertical Axis.

3. Click the drop-down icons of Sales Revenue, Sales Cost, and Gross Profit, select Value Format, and set Unit Quantity to Million for the three fields separately. Click the drop-down icon of Gross Profit Margin, select Value Format, and select Percentage.

4. To quickly identify negative gross profit margins, you can customize the setting for Gross Profit Margin in Table Property, as shown in the following figure.

The following figure displays the effect.

Purchasing Analysis

After conducting a key indicator analysis on customers, you can discover that some customers rank high in sales revenue but have negative gross profit margins. Moreover, the gross profit is related to the mix of products purchased by customers. Therefore, it is necessary to further analyze their purchasing behavior. Two methods, namely, linkage and drilling, are available.

Linkage

1. Create a detail table of customers.

2. Drag Date, Product ID, Product Category, Customer Name, Sales Revenue, Sales Cost, and Gross Profit into the Data bar, as shown in the following figure.

The following figure shows the effect.

Drilling

To create a drilling directory, drag Customer Name over Product Category in the to-be-analyzed area. For details, see Common Drilling.

The following figure shows the effect.

After finishing Sales Analysis, you can move on to Cost Analysis for further learning.