A sales analyst is an individual who carefully reviews the performance of sales data, and sometimes makes predictions of future performance. To do this, the individual must have a great deal of training not only in the area of business, but economics and marketing as well. This multi-faceted field is good for those who like to put all the pieces of a puzzle together, but it can also be high stress. Once the analysis has been completed, the sales analyst will present those findings and recommendations to superiors.
The first thing a sales analyst will often look at is past performance. Though business conditions are capable of changing overnight, they rarely do. Rather, trends can begin to signal an uptick or downturn months before the events actually occur. A good analyst will be able to spot those trends and determine what can be done to deal with them before they become a reality.
No analyst will be correct in his or her predictions 100% of the time. That is a bar that is too high even for those who are trained, and have been performing such analysis for decades. Nevertheless analysts often feel themselves under great pressure for their predictions to be correct. While there are certain ways to improve, success mainly comes with experience and guidance. This is why analysts will often collaborate with colleagues to come up with multiple opinions. These opinions are formed from people with different backgrounds, who must work together to come up with a cohesive package.
Working effectively at these collaborative meetings is another important part of the job for a sales analyst. If sales are declining, that could be because of the economy, a substandard marketing campaign, a new competitor, or any number of other reasons. Performing a SWOT analysis, which is determining the company's strengths, weaknesses, opportunities and threats, may help determine what the causes may be.
After a reasonable effort has been made to determine the causes, the sales analyst will often prepare a final report. It will show what has happened with the company, what is happening, and what may likely happen in the future. This will be presented to a superior, who may act on this information with an executive council. That council, or a board of directors, will often have the ultimate say in what actions will take place.
In some cases, a sales analyst may be asked to help predict what may happen in a hypothetical situation if the company goes in a certain direction. This is especially true when opening up new locations, such as in a retail environment. This will involve looking very closely at the community targeted to determine if there is a big enough base to support such a store, restaurant, or service.