GuideApproved
Falling sales: diagnose before you act
Before raising the ad budget, find out exactly where sales dropped.
9 Aug 20265 minValid until 3 Oct 2027
Decompose sales
Sales = customers × purchase frequency × basket size. Which one fell?
Segment
Look at the drop by product, channel and region.
Suggested actions
- Break sales down into customers, frequency and basket size
- Call 10 lost customers and ask why
- Compare price and offer with three main competitors
Possible causes
- Loss of key customers
- Competitor price changes
- Distribution channel problems
Required documents
- Monthly sales by product and channel
- Key customer list