Have you ever wondered how companies accurately predict sales changes? It can definitely seem like more of an art than a science. In this guide, the experts at SELLect Sales Development explore how businesses can use seasonal sales changes to their advantage and how they can use this data to make informed decisions.
Merit Kahn, CEO of SELLect Sales Development, talks often about the importance of being in Sales Motion. “Doing the right actions and behaviors on a regular basis will help you reach your aggressive sales goals, but if you don’t take into consideration the seasonal changes in your industry or the marketplace your action plan is in an argument with reality,” says Kahn.
What Are Sales Changes and How Do They Affect Your Business?
Sales changes are a big part of the business cycle. They can have a massive impact on your business, so it is important to understand what they are and how they affect your company.
Sales changes are predictable during certain seasons of the year. These shifts are primarily due to the change in demand and supply of goods, ultimately resulting from consumer behavior. The impact of seasonal sales changes on business will be explored in detail below.
Why is Sales Forecasting Important?
Forecasting is the process of estimating future sales based on past performance. It is a complex and challenging task, as there are many factors that can impact sales. Fortunately, different forecasting methods can be used to make the sales process more accurate and reliable.
What is Seasonality Forecasting?
One of the most popular methods for predicting sales is known as seasonality forecasting. When executed properly, a seasonality forecast can significantly reduce business costs and improve bottom-line profitability. But what is seasonality in sales, exactly?
Seasonality forecasting is an essential tool for businesses to use. It’s a strategic method based on the idea that people buy more in certain seasons than others, and it takes into account the economic conditions and other factors. As a result, it can help sales teams predict seasonal changes and make necessary adjustments in their business practices. With the right techniques, businesses are able to understand these seasonal changes and plan accordingly. Overall, it’s an important process that helps companies to predict and plan for the future demand of their products and services.
Man-Made Seasonality vs. Natural Seasonality
Man-made seasonality refers to the demand caused by external factors. For example, certain months of the years are historically associated with a spike in weddings. Therefore, there is a predictable increase in sales for businesses such as wedding venues, wedding planners, and caterers.
Meanwhile, natural seasonality is caused by natural factors, such as changes in weather or seasons of the year. For example, hotels and resorts in the northern U.S. often experience a surge in customers during the spring and summer months, while tourist spots in the southern states see more business in the fall and winter.
Additionally, there are also types of seasonality that are influenced by time. Below are three types of time-based seasonal patterns commonly analyzed in sales forecasting methods.
- Weekly Pattern – This seasonality sees a predictable demand for goods and services on a weekly basis. For example, consumers often spend more money on weekends and less on weekdays. This is likely the result of weekends providing more free time for shopping due to work or school.
- Monthly Pattern – This seasonality usually applies to an influx of product consumption at particular times of the month. For instance, it’s very common for customers to spend more money after receiving their paychecks, whether at the beginning or end of the month.
- Yearly Pattern – This covers the recurring demand for goods and services over the course of a year. For example, a company that sells winter apparel will likely see a sharp increase in sales during the fall and winter seasons. Likewise, they may find it challenging to remain profitable throughout the spring and summer.
How to Manage Seasonal Sales Demand
A company can start by assessing the current demand of their product, which they can do by analyzing the past sales data. They can also evaluate the current market demand by looking at the supply, which they can do by finding out how many units are already in stock. In short, seasonal forecasting techniques help companies predict trends and plan for the future demands of their product.
Maximize Your Profits with the SELLect Sales System
Are you tired of the same old sales approach? Do you want to finally get the results you deserve?
If so, it’s time to maximize your profits with a proven program that has been tested and proven over time. The SELLect Sales System is a step-by-step sales system that will teach you how to:
- Generate more leads than ever before
- Find prospects who are ready to buy right now
- Drastically increase your conversion rate
If you are ready to stop selling and start getting SELLected by your ideal clients for your best fit projects… at just the right season… we’re here to help.
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