Sales Growth

Analyze the pace at which your sales revenue is increasing or decreasing.

Sales KPI Examples | Sales Growth Metric

Overview

Sales Growth metrics measure the pace at which your organization's sales revenue is increasing or decreasing. This is a key metric for any organization to monitor since it is an essential part of growth projections and is instrumental in strategic decision-making. Monitor this metric over multiple time periods to gain a clear indication of growth trends and normalize your values. This will help you account for monthly or quarterly spikes in revenue.

At the highest level, the sales growth metric is used to provide executives and sales directors with an assessment of the sales organization's performance. However, this metric can also be broken down to show how each sales team or sales representative can contribute to achieving organizational goals. Rather than providing each sales team with a broad objective of increasing total sales by 20% this year, provide attainable (yet challenging) objectives that will help them effectively contribute to achieving your business objective.

Key terms

  • Current sales revenue: The total dollar value of sales during the current time period.
  • Previous period sales revenue: The total dollar value of sales during the period time period.

Formula

[(Sales for the current period - Sales for the previous period)/Sales for the previous period]x100

Success indicators

  • A positive sales growth percentage over the specified time period.

Audience

CEO, CFO, Sales Manager, Sales Team

Monitoring Sales KPIs on a Dashboard

Once you have established benchmarks and targets for measuring Sales Growth, you’ll want to establish processes for monitoring this and other sales KPIs. Dashboards can be critical in this regard. Read more

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