You can improve your sales management by following these four tips.

How do you measure company results? Is the term average price, average sales familiar to you? If this is how you measure your success, you may be walking a tightrope and not realize it.

Often business management departments work with averages because it makes life easier in terms of analysis and results. They measure average prices and average sales. In contrast, the finance department analyses the general profitability of the company, but have you ever thought about the risks involved?

Here is an example of the risks of measuring averages and the relevance of variation in commercial management. Suppose your logistical objective is to deliver products to your customers in 3 working days. The monthly reports indicate that the average delivery time is 3 days. However, if out of every 3 deliveries you make one in 2 days, another in 3 days and the last in 4 days, your average is 3 days, correct?

But the reality is that you will have one customer who received his material earlier than expected. This could complicate your storage while the third had to wait 1 day longer. These figures show that 66% of your customers are dissatisfied with the service.

The average provides only partial information. It only hides the real business opportunities or potential risks your company could face in its commercial management.

The real problem with averages is when you don't know how you arrived at that figure.

Analyze the variability and you will understand that improving your indicators is easier than it seems.

As an example, the average profit of your products is $100 and you can be happy because you are getting the amount you want to earn. However, if you analyze the variability of the average of $100 it turns out that in product A you have a profit of $100, in product B you have a profit of $180, and for product C $20. Then you will realize that you have an opportunity to improve your product margin.

Apply these tips to understand business management averages.

Segmentation and re-segment

Segmentation is fundamental. This is one of the first things you should do to understand variability and it also allows you to know the specific needs you have to cover for each group.

Measure everything

Your reports should move from general to specific and have the necessary information to understand your average variability.

Always measure everything

If you can't do it, assign someone else to do it. In many companies, there are even departments dedicated to variability analysis, such as pricing departments, business intelligence departments, and others.

Use technology

Technology is an ally. Use it. It's easy to automate these things with software, saving you hours of analysis and creating business opportunities.

Establishing these mechanisms will allow you to optimize your commercial management resources and maximize your efficiency by focusing your efforts on the relevant areas of opportunity and minimizing potential risks.