What is Sales Leakage? Sale Business Software Solution

If you operate as a distributor or supplier, sales are the foundation of your company. Therefore, if you’ve observed a decline in sales, you must be able to identify the reason and implement a clear plan of action. Don’t worry if you’re unclear about where to begin.

We’ll define sales leakage, discuss why it can seriously affect your company, and show you how multimicro systems, our cutting-edge Chill Sales Assistant Agency, can help you stop it in this post.


What Does Sales Leakage Mean?

Revenue lost from your company as a result of ineffective business procedures or human error is known as sales leakage.

For instance, you risk losing some loyal consumers and their money if you routinely have stockouts. Your customer care team won’t be able to follow up with these clients in the interim if they aren’t aware of the problem. This indicates that sales that your company would have generated have “leaked” away from you and into the hands of other companies. More effective processes for inventory control, customer service, and buying may have solved the problems in the aforementioned situation. Automated purchasing procedures help prevent stockouts. Your customer support staff can be informed of any leaks in the interim with the use of more lucid reporting and a more efficient CRM system.


Why is Sales Leakage a Problem?

The solution is straightforward: over time, ongoing sales leakage will cause financial losses for your company. While occasionally losing a customer is manageable, you cannot allow sales leakage to negatively impact your company. Fortunately, controlling sales leakage in your company can be done easily. It all comes down to managing your inventory and customer service better and optimizing your procedures.


Sales Leakage a Problem - Multimicro Systems

How to Stop Sales From Leaking

To begin with, you need the appropriate tools to handle customer service, inventory control, reporting, and other tasks in a proactive manner. However, how can it be applied to stop sales leakage?

Examine the Sales Figures

First, complete visibility is necessary to stop sales leakage. Without knowing your clients’ past purchases, how can you keep them coming back to your establishment? Along with more comprehensive sales data from your company, you also need to know exactly what a consumer has purchased from you and when.

Multimicro Systems provides you with access to all of your customers’ past purchases in addition to sales information. This implies that you can quickly determine whether their sales have increased or decreased. Additionally, you will be able to “drill down” further into this data to find product-specific sales facts. For instance, a customer may have decreased their sales in a particular category, like tools, even though it looks like they are purchasing more from your business. Your customer care and sales teams may be able to salvage the sale if they can talk to the consumer about this if they have access to this information.


Simplify the Process of Managing Inventories.

Stockouts are a major contributing factor to sales leakage. This is so because stockouts result in fewer sales and delayed dispatches. Consequently, that results in a worse client experience. One study estimates that inventory distortion costs retail organizations $818 billion year globally, with stockouts accounting for 56% of this loss.

How therefore can you improve the efficiency of your inventory control?



Manual inventory management is still used by many businesses. However, you may avoid human error and save time by automating your purchase operations. You can establish minimum stock requirements for any product with Chill Sale Assistant Agency Managment System. Upon reaching this threshold, an automatic purchase order will be raised. By doing this, stockouts won’t affect your company. You can select maximum and optimum levels to meet your needs and customize these levels across different goods.



An additional issue with manual inventory management is the frequent lag in updates from several teams and departments. Let’s take an example where your sales team receives a sizable order. They might not be aware that there are stockouts for multiple products in the order if you’re utilizing a manual system. Although they might not have had time to update the system, the warehouse staff might already have this information.



Underpricing is a major contributor to sales leakage, aside from client loss. Your sales force may be selling products at a lower profit margin or even a loss if pricing is erratic and confusing. multimicro systems makes sure that all of your sales channels’ pricing lists and other product information are easily accessible to your employees.


Deliver Excellent Customer Service

Naturally, providing excellent customer service is one of the most effective ways to stop leaks. Positive customer experiences may make unhappy customers happy, and they can also make a fantastic customer service staff experience the cherry on top. Here are a few strategies for decreasing sales leakage in customer service:


Swift Reactions

Consumers expect answers to their questions, not to have to talk to fifty different departments. This is particularly true if they require an order modification. multimicro systems company can promptly deliver all the necessary data your customer support staff requires, cutting down on customer wait times dramatically.



Your customer care team can offer recommendations for additional goods or services that the client might find useful in addition to responding to their questions. multimicro systems offers customized recommendations for related products that buyers might find appealing, including stand-ins for products that are sold out.

Your ability to manage your business as a manufacturer’s representative or agent determines how successful you will be, particularly if you represent several manufacturers in a high volume market. The issue is that there’s never enough time to finish tasks. Your team needs to close quotations and track them rapidly.

Reconcile commissions and respond to inquiries about order status, shipping, and cost. Don’t forget to complete reporting for commission, sales analysis, and bookings. To make your work easier, this robust Chill software system automates sales office tasks. It is possible to automatically adjust pricing and reconcile commissions. Booking, commission, and sales analysis reports are easily obtained. Additionally, some manufacturers offer real-time order progress updates for client assistance. Additionally, this system offers you easy entry, tracking, and a quick-access file cabinet with all types of data readily available to answer inquiries. It also gives you quote and order price history. It even can be incorporated into a manufacturing host system to assure real-time correct pricing.

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