An industry or turnover monitor is a survey that periodically collects and analyses turnover data from organisations within an industry. This can include the total turnover of the organisations as well as the turnover of different product groups.
How does an organisation's turnover develop compared to the industry? As a participant in an industry or turnover monitor, you compare the total turnover and turnover of the main product groups in the industry with the overall industry or interesting relevant reference groups every quarter (in this case; monthly or annual is also possible). As an industry organisation, you have insight into total industry turnover and development.
As a member of an industry association, participating in a turnover monitor offers several advantages:
Understanding market position
By comparing its own turnover figures with those of the overall industry and relevant reference groups, the organisation gets a clear picture of its market position. This insight helps in assessing its competitive position and market share.
Identification of growth and loss areas
The turnover monitor allows you to see which product groups are performing well and which are lagging behind. This information is crucial for strategic decisions on product development, marketing and sales strategies.
Trend analysis
By analysing sales data every quarter, the organisation can identify trends and seasonal patterns. This helps in anticipating market changes and planning inventory and production needs.
Targeted marketing and sales
Insight into sales by product group allows marketing and sales efforts to be focused on the most profitable segments. This allows the organisation to budget and allocate resources more effectively.
Competitive analysis
The turnover monitor provides an indirect form of competitive analysis. By comparing turnover with the industry as a whole and specific reference groups, the organisation gains a better picture of the competitive environment and can better respond to market changes.
Innovation and product development
By seeing which product groups are successful in the industry, the organisation can make targeted decisions on innovation and product development. This helps in creating products that better match market demand and customer needs.
As a trade association, why conduct a turnover monitor among members? Here are a few reasons:
Improved market insight
The turnover monitor gives the industry association a detailed overview of total turnover and the performance of different product groups within the sector. This helps to get an accurate picture of market developments and trends.
Member support
By collecting and analysing sales data, the trade association can provide valuable insights and benchmarks to its members. This helps members make better-informed decisions and improve their operations.
Strategic policy-making
Data from the revenue monitor can be used to develop policies and strategies that benefit the industry as a whole. This includes identifying growth opportunities, addressing bottlenecks and promoting innovation.
Strengthening the lobbying position
With concrete data, the industry association can lobby policymakers and other stakeholders more effectively. Accurate turnover figures support regulatory and policy arguments favourable to the industry.
Sectoral health monitoring
By regularly collecting turnover data, the trade association can monitor the health of the industry. This enables them to intervene in a timely manner in case of negative trends and support the industry in taking corrective measures.
Improving member retention
Offering a turnover monitor as a service strengthens the membership's value proposition. Members see immediate benefit in the insights and benchmarks they receive, which can lead to higher member retention and satisfaction.