Sales Growth Analytics provides year-over-year comparisons and detailed metrics on sales performance, helping you understand growth trends, evaluate revenue changes, and refine strategies for improved profitability.
Sales Growth is a strategic indicator used in the decision-making process by executives and the board of directors and influences the formulation and execution of business strategy.
Annual sales growth analytics provides metrics on how quickly a company has been growing its sales. YOY comparisons are a very important and effective way to evaluate the financial performance of a company. It is measured as the percentage change in sales over a given period. This will help you understand whether there is periodic growth in the company's revenue and Gross profit.
Analyzing sales growth answers the ‘Why’ for the company. Why is there a growth or why is there a negative growth. YOY growth compares how much you’ve grown in the recent period compared to the past period(s).
Sales growth is also measured at the Task or Service Category level, which is an added advantage to understanding the service category level revenue. You can get to know the categories in which maximum revenue is achieved and at the same time take necessary action and target a certain category to improve sales.
- Metrics and Description
- Calculated fields
- Benefits and Advantages
- Annual Sales Growth Analytics short video tour
Annual Sales Growth Analytics is designed to present the below metrics
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Metrics |
Description |
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Annual Sales Growth | Revenue |
This table displays the revenue generated for the selected time range, along with the growth calculated for each year. |
|
Annual Sales Growth | Gross Profit |
This table displays the gross profit generated for the selected time range, along with the growth calculated for each year. |
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Annual Sales Trend |
A line chart showing the revenue vs gross profit for the selected period, and helps you understand whether they are moving in the right direction. |
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Analyze sales growth per Service |
You will understand the top services by the sales revenue and growth rate each year. |
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Analyze sales growth per Service Category |
You will understand the top service category by the sales revenue and growth rate each year. |
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Yearly review | Top 5 Salesperson by Revenue |
The pie charts in the visualization specify the year for the specified time range, and each pie chart shows the revenue generated by the top 5 salespersons. |
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Yearly review | Sales per Customer Type |
This stacked bar chart shows the sales revenue by each customer type, and each stack represents the year of the specified time frame. |
Calculation
Sales Growth is calculated by reducing last year's sales from the current year’s sales. The percentage of sales is calculated by taking the base of last year and multiplying by 100.
Growth = [(This Year – Last Year) / Last Year] X 100
Understand Positive Sales Growth
When the growth of Sales numbers is more than the compared base, it is termed as positive Sales Growth. Every company always strives for positive sales growth and it is always beneficial for the financial well-being of a company to have positive sales growth.
Understand Negative Sales Growth
When the current year's earnings are lesser than previous years, it is termed as negative sales growth. It is an indicator that somewhere, something went wrong due to which the sales suffer. A continuous negative growth brings tough choices to a company and it often does not end very well
Importance of having Sales Growth
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Sales growth is an indicator that the steps taken towards policies are correct and working. A positive sales growth is a green signal which means things are being done right while a negative sales growth is a red signal which means it is time to stop and rethink.
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A positive sales growth is the objective sought by a company because it means more profits. Positive sales growth also signals that conditions are favorable in the market and that the strategy or technique the company is currently following is working in its favor. While getting positive sales growth may be easy maintaining it is a challenging task.
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A negative sales growth is a signal for a company shouting for a change. Surely something is not working right which is getting negative sales growth and it needs to be changed. The company, then, has to rework its current policies and teams and rework next year’s targets.
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A positive sales growth also indicates an increase in market share, customer acceptance, and user base. It means the product is being accepted in the market.
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To maintain positive growth, the company needs to adapt to the changing market. Thus, positive sales growth also indicates making necessary changes to the current working of the company, in order to improvise and adapt to the market needs and customer Demands in the long run.
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Various comparisons of Sales Growth can determine various approaches that a company can take to increase its sales. The type of Sales Growth analysis followed by a company determines its position in the market. A further detailed analysis like analyzing customer Sales Growth will further determine the reason for the increase or decrease in sales growth.
Annual Sales Growth Analytics short video tour