Year to date (YTD) comparatives are the bane of every sales manager and sales person. Some managers treat them as a holy grail to set targets. But what are the YTD (year-to-date) figures and why they can mislead?
1-Yearly fluctuations in demand
YTD indicators are prone to heavy yearly fluctuations because of transient yearly events e.g. Easter or other religious holidays that affect our spending patterns.
2-Disregard to evolving market pressures
The market is evolving so the YTD comparatives completely disregard these evolving market pressures which can be masked of if we compare the YTD.
3-YTD is for the lazy manager
It is very convenient to compare figures in a VTD scenario. The real test is to arrive at a realistic figure for the current market conditions.
So what is the alternative to YTD?
In our Sales Management Masterclass we have developed an AYTD (adjusted year-to-date) metric based on the following key parameters
a-spending seasonality patterns
c-adjusted seasonality events
The above gives a better tracking figure and reflects the current market scenarios to a higher degree than a simple YTD figure.
"You cannot forecast todays weather with last year's"
Managing Director and Chief Programmes Officer based in Malta and an avid entrepreneur who likes sharing his expertise in various fields with people from all walks of life.
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