Companies invest significant resources and effort to attract customers and get them to buy products. Therefore, it is essential to pay close attention to avoid losing sales.
When we talk about lost sales, we must analyze different factors that have a very negative impact, some of them are:
- Not having equivalence between the part number requested by the customer and the product that is in stock.
- Not having the product requested in the product range.
- No stock availability.
- Not having a competitive price.
Factory Data, within Neo system tool, has designed a dashboard to monitor sales performance based on the “Demand/Sales Efficiency” ratio, which measures the ability to convert demand into sales in order to maximize performance. A high ratio indicates that most of the demand is being met and therefore potential lost sales are low, while a low ratio indicates demand loss and therefore high potential lost sales.
Thanks to the corrective measures proposed by the developed tool, auto parts sales companies manage to minimize lost sales, which increases efficiency, improves service but above all increases sales.
For example, a company with an average of 8,000 monthly inquiries, with a sales conversion rate of 15%, an average selling price of €80 and a gross selling margin of 25%, only by improving the demand/sales efficiency ratio by +10% would contribute a gross benefit of €2,400/month.
If you want to measure your demand/sales efficiency ratio for free and learn how you can improve it, please contact us.
By Joan Cabós
CEO & founder