When data is presented visually, readers take the shortest time possible to make conclusions. According to a recent market study, the human brain can process visually presented data 60,000 times faster than text. This reflects why it’s essential to use sales graphs and charts to elevate business performance.
When using charts and graphs to present your data, it becomes easier to highlight the available trends and patterns and compare sales figures. When composing a sales report, using sales charts and graphs makes more sense and simplifies the complexity of the data. It’s high time business owners properly use sales graphs and charts to boost their brands.
However, the sad news is that most business owners do not understand how to utilize business charts and graphs best. This blog post covers all the essential aspects of how you can use sales graphs and charts to boost your business performance.
Sales Graph and Chart
On most occasions, readers find it difficult to understand and compare more than two sales figures presented in a textual format. The good news is that presenting sales data using visual images is more concise and effective. This is why sales teams mostly use charts and graphs to highlight data since it becomes easier to read and understand.
When you present to your readers easily digestible data, you tend to improve the overall performance, which increases the conversion rate and revenue generation. Using the right sales charts and graphs increases your chances of reaching out to prospects correctly and at the right time. As a result, you find it easier to skyrocket the conversion rate.
The secret is ensuring that your readers can easily identify the primary pain points. Provided that prospects can get the message and draw conclusions, you get it easier to skyrocket sales and enhance the general growth of your business.
What is a Sales Chart?
A sales chart is a special type of chart used to show how sales vary within a specific time frame across the business. A sales chart presents data values in a manner that the products are outlined on the x-axis while the total number of sales is presented on the y-axis. However, you can outline values depending on your preferred dimensions and the nature of the data you are visualizing.
The best sales chart works by simplifying the information you have at your disposal rather than presenting all the information and confusing the reader. Sales charts and graphs operate by pinpointing the most essential data insights that address the reader’s needs. The chart sequences the data into a story and converts it into a clear and concise visual that prospects can understand.
Creating a Sales Chart
The immediate step you need to make when creating a sales chart is defining the plot area that will accommodate all the sales data. The area is mostly enclosed by two axes, with the x-axis at the bottom and the y-axis at the left side of the chart. All the axes incorporate known data values, such as dates.
The y-axis consists of data that is measurable in nature. This might be counts, percentages, frequency, or sales revenue. Note that the numerical scale (y-axis) is divided by tick marks or numbers. The chart’s title should summarize all the essential aspects, while the axis labels should give clear direction about the nature of the data outlined.
Also, there is the legend used to describe all the chart elements in a written format. The legend explains all the basic elements of the chart, making it easier for readers to understand the entire message delivered by the chart.
Top Examples of Sales Charts and Graphs
The type of sales chart you use mainly depends on the nature of your data and the message you intend to convey. Below are some of the best sales charts and graphs you can use to generate optimal business results. Check them out!
Customer Acquisition Cost
The customer acquisition cost is one of the most crucial KPIs you need to monitor closely for the well-being of your business. Tracking your customer’s lifetime value and the amount of money it costs to acquire a new customer can help you uncover more crucial information about your business. Note that the lower the customer acquisition cost, the better.
If you realize that you have a higher customer lifetime value than your competitors, you can emerge the best by setting up a higher customer acquisition cost. This sales chart is tailored in a way that it displays trends in your customer acquisition cost over time. The sales graph would likely warn you about the rising trend if you did not embrace a relatively higher acquisition cost.
This type of sales graph presents a detailed picture of the sales conversion rate. Businesses dedicated to making more sales are more likely to skyrocket their respective revenues by elevating the size of the closed deals. Also, it increases the number of targeted leads, customer retention rate, existing leads, and conversion rates.
The sales graph gives you the ability to evaluate the effectiveness of your team members in matters of converting leads. The general goal is to ensure your business is better positioned to record significant growth heights by attracting as many clients as possible. The chart lets you see the number of leads you are contacting and the number of clients that get to every stage.
The sales growth chart displays a comprehensive overview of the sales performance. The chart presents a bunch of KPIs that reflect the general growth of the business. Using this chart lets you see the number of new customers recorded, and the revenue generated by every KPI. This chart is mostly used when you want to get a better picture of your business performance over a particular duration.
Anytime you want to evaluate the growth of your business, you can easily deploy this sales chart type and gather insights on the way forward. The sales performance chart is the simplest option of all the charts since it’s pretty easy to create and interpret.
When talking of sales data visualization, you can’t miss mentioning the sales cycle. This sales chart displays the average time it takes to go through your entire sales funnel. The chart enables you to see all the top sales managers or representatives depending on the number of sales deals closed. Most people prefer seeing shorter sales cycles.
However, you should not neglect to evaluate the size of the sales deals closed by the sales representatives. Also, you should monitor the customer lifetime value of your regular customers. Always consider all these aspects when evaluating the success of your sales over a particular duration.
The primary goal of a sales chart is to uncover insights from your sales data and present them in a manner you can easily read and understand. Note that your market audience needs a clear picture of your business performance. The only way you can utilize to communicate with them is by using sales charts and graphs to deliver your message.
With the aid of digestible visual data, it becomes easier for you to communicate with your audience. Remember that not everybody understands the technical jargon that comes with sales data. You can eliminate all these technicalities using sales graphs and charts that offer meaningful information to your readers. The type of sales chart you use to present your data mainly depends on the nature of the data and your target audience.