How to Conduct a Sales Audit for Improved Efficiency

Is your sales strategy up to par? Conduct a sales audit to uncover gaps and drive growth. Learn all you need to know about the audit process in our latest post.


January 17, 2024

How to Conduct a Sales Audit

Do you want to fine-tune your sales process?

sales audit is the best way to improve your team’s performance. You may even discover how to lower expenses. In this post, you will learn how to perform an audit and how your company can benefit from one.

Table of Contents

    How often should companies conduct a sales audit?

    Companies should conduct audits at least once a year.

    Annual audits are essential, but they are not always enough to keep pace with the market. For that reason, we recommend quarterly reviews. Routine check-ins help companies avoid potential issues that hurt sales efforts.

    Who should perform the sales audit?

    Companies can perform the audit internally or hire a third-party audit firm. Regardless, the auditor should have experience with operations and remain unbiased.

    The Brand Auditors takes a holistic audit approach. We review the entire sales process, including the sales funnel, marketing strategy, and value proposition. We can also help businesses determine whether reps are equipped to meet their goals. Best of all, we offer actionable insights that will make a real impact on your productivity.

    Click here if you would like to schedule a free consultation.

    How to prepare sales reps for an audit

    Preparation sets the stage for a successful audit. Gather the information you believe will be necessary. Examples are sales data, revenues, and policies. If you are not sure what you will need, ask the auditor to provide a list.

    To prepare your reps for an audit, explain why it is happening and how it will benefit them. Transparency is key. Addressing their concerns or questions can reduce stress and foster a cooperative environment. Outline expectations, responsibilities, and the documents or data they must provide.

    Next, conduct sessions to familiarize your team with the audit process, including outcomes. These sessions should prepare your reps for the audit, not scare them.

    Finally, encourage reps to keep their records organized. This keeps data accessible during audits and improves efficiency in their daily operations. Regular check-ins and reminders can help reinforce these habits.

    The sales audit process

    An audit helps you find out how well your sales process works. This helps you improve and optimize performance. It may also be possible to reduce expenses without negatively impacting your team.

    There are usually three key audit components: strategy, a sales department review, and a systems review.

    3 Pillars of Sales Audit
    3 Pillars of Sales Audit

    Sales strategy

    A sales strategy is a plan to sell products or services to customers. A strategy involves identifying target markets and understanding customer needs. Then, the company aligns its sales objectives with its business goals.

    The sales strategy also includes the methods used to reach potential customers. The goal is to get customers and keep them—the key to long-term profitability.

    An audit evaluates the strategy to determine if it aligns with the company’s business goals and target market. The auditor must review the target market segments and unique selling proposition. They should also examine the offer to customers and what makes it unique.

    Key performance indicators include market share, customer acquisition cost, and customer retention rate. Sales cycle length and team productivity are also valuable KPIs.

    In this step, you will assess whether goals are realistic, given the market and customer buying behavior. Are you targeting the right customers? Is there a better way to reach them effectively?

    Sales department

    The sales department is the heart of any commercial organization. So, the auditor should review the sales team’s performance, training programs, and management.

    Performance is measured by their ability to meet or exceed targets. The auditor evaluates techniques, product knowledge, and customer relationship management. They will also consider the structure of the team and its alignment with the strategy. Are roles and responsibilities clearly defined? Are lines of communication clear, or are there bottlenecks hindering performance?

    The audit also examines the organization’s current training programs. Are they up to date? Do they equip reps with the skills and knowledge to sell the company’s products?

    Effective management is another key area of focus. It also investigates how the sales department establishes targets and how reps receive feedback.

    Sales Systems

    You should revisit existing tools and technology your team uses, such as CRM software, automation tools, and reporting solutions. This review helps you understand how data is collected, stored, and analyzed.

    This audit step allows you to review the metrics you are using to measure success.

    Here are examples of success metrics:

    • Marketing qualified leads
    • Customer lifetime value
    • Leads in pipeline
    • Customer retention

    Marketing Manager KPIs: Essential Metrics for ROI

    Are you a marketing director who wants to know which KPIs drive results? This post shows marketing executives which key performance indicators matter most.

    Types of sales audits

    Organizations may conduct various types of audits. The type depends on their specific needs and objectives.

    Here are some of the most common:

    Financial sales audit

    • Focuses on the financial aspects of selling.
    • Examines revenue, expenses, profit margins, and overall financial performance.
    • Identifies financial discrepancies and ensures accurate financial reporting.

    Sales operations audit

    • Evaluates the efficiency and effectiveness of processes and operations.
    • Examines lead generation, prospecting, presentations, order processing, and customer relationship management.
    • It aims to streamline processes and enhance overall productivity.

    Sales team audit

    Analyzes the performance of individual representatives and the team as a whole.

    • Evaluates key performance indicators (KPIs) used. Examples are conversion rates, average deal size, and sales cycle length.
    • Identifies areas for skill development and training.

    Compliance audit

    • Ensures that the team is adhering to legal and regulatory requirements.
    • Review contracts, pricing policies, and communication for compliance.
    • It helps mitigate legal risks and ensures ethical business practices.
    Sales funnel diagram
    Sales funnel diagram

    Customer satisfaction audit:

    • Focuses on understanding and improving customer satisfaction throughout the sales process.
    • Gathers feedback from customers to identify areas for improvement.
    • Assesses the effectiveness of support and service.

    Technology and tools audit

    • Evaluates the effectiveness of technologies and tools.
    • Examines the impact of customer relationship management (CRM) systems. Automation tools and other technology platforms may be included as well.
    • Identifies opportunities to enhance the technological infrastructure supporting the sales function.

    Market and competitive audit

    • Analyzes the market conditions and competitive landscape.
    • It helps companies evaluate strategies compared to market trends and competitor activities.
    • Identifies opportunities and threats in the market.

    Training and development audit

    • Assesses the effectiveness of training programs.
    • Identifies gaps in knowledge and skills among representatives.
    • Recommends improvements in training and development initiatives.
    Types of Sales Audits (CLICK TO EXPAND)

    Consistency between sales and customer service

    Over 60 percent of consumers surveyed said they would leave a brand after one bad experience.

    When companies can’t meet customer expectations, they see a decline in retention. Teams sometimes set unrealistic expectations for the customer, especially when there is tremendous pressure to sell. So, use an audit as an opportunity to review the consistency between departments.

    The most effective way to check for consistency is to review data, such as customer feedback, recorded phone calls, online surveys, and other consumer reports. This information enables a business to uncover issues and correct them. A formal review process can also start discussions between departments to identify and correct problems related to the customer experience.

    Brand experience vs. customer experience

    Do you need a third-party sales auditor?

    A sales audit is crucial for any business looking to improve productivity and efficiency. If you need help conducting your next audit, click the button below to schedule a free consultation with an auditor.

    Chris Fulmer

    Chris Fulmer

    Brand Strategist | Managing Director

    Chris has over 15 years of experience in brand development and marketing. He has designed strategies across various industries, such as technology, B2B services, and healthcare. His areas of expertise include brand positioning, competitive analysis, content marketing, and web development.

    Are you ready to find out how a brand audit can transform your business?

    Our brand audit process is a comprehensive analysis designed to help companies optimize performance.

    • Increase ROI on lead generation and sales conversions.
    • Reduce marketing expenses.
    • Strengthen brand positioning to become more competitive.

    We guarantee satisfaction or get your money back! Schedule a discovery call with a brand auditor to find out more.

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