What is Sales Trend Analysis? Benefits of Sales Trend Analysis.

sales trend analysis

What is Sales Trend Analysis?

The process of identifying the sales patterns by interpreting historical and current data over a period of time is called sales trend analysis. It is mostly used for budgeting and financial forecasting. It helps to predict the future market by analyzing short-term changes in the market and revenue growth.

Sales trend analysis is one of the key factors to scale the performance of the business and determine if the business is achieving its goals. You can understand customer behavior by analyzing various trends of your business to spend more on profitable areas and optimize your cash flow.

As companies might be selling multiple products to a variety of customers from different regions, you can break down the sales into sub-categories which helps to understand the sales trends by reviewing various metrics. For example, Sales by products, sales by region, sales by channel, etc. Simply plotting your business sales on a trend line won’t help you get correct insights. You should drill down your data deep for various sub-categories. Interpreting sales with various KPIs relevant for your business will get accurate insights which lead to better projections.


Benefits of Sales Trend Analysis.

  • It allows the business to find new opportunities and be prepared for potential problems
  • It tracks different channels of your business to understand the revenue growth
  • Accurate insights from the data will help you make sound decisions
  • Helps you find out underperforming channels or products and take necessary actions.
  • Compare the sales based on various KPIs like location, channels, product type, etc.
  • Visual representation of data makes it easier to derive actionable insights.
  • Study various sales patterns to determine their effects on business performance.
  • Helps you understand customer spending behavior and price your products accordingly
  • Find uncommon trends in the market.
  • Perform additional analysis for better insights and estimation for the future.


The first step to performing a sales trend analysis is to find the right place to input and analyze your data. Most people either use Microsoft Excel or any data insight software to get the job done. On Excel, the user has to import large data and its built-in features allow you to create a customized dashboard. Using dedicated data insights software will ease things up for you. They automatically pull all the necessary data from your system and generate a powerful dashboard.

But it can be a time-consuming process as you need to manually enter all the entries and create the dashboard. Outsourcing this process will help you save valuable time. You will be provided an accurate sales trend report highlighting various opportunities and potential problem that helps to improve the performance of the business.

It is best to implement sales trend analysis to scale the performance of your business. At Agile e-Platform, we help our clients to get actionable insights by providing detailed sales trend reports. Our expert analysts will help you take a data-driven approach to increase your profitability. They have in-depth industry knowledge working with various clients across the globe that help you grow your business.

Contact us to know more.

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