Sales Performance Analysis

In order to accurately assess how effective a retail business is, it is important to track several key indicators that help to create a complete picture of sales. Let's look at the main ones and methods for analyzing them.

One of the simplest, but at the same time important indicators is the number of products sold. It allows you to determine which product or product group is in the greatest demand. The analysis method consists of calculating the sales volume for a certain period of time.

Key points of the analysis:

Sales volume for a month, quarter or year.
Comparison with forecast indicators, which allows you to assess the deviations and reasons that influenced the growth or decline in the number of units sold.
Seasonality analysis, which helps to understand how the demand for a product changes depending on the time of year.
Such analysis allows you to quickly identify the most popular products and focus on their promotion.

Revenue is the main indicator that reflects the company's income from the sale of goods or services. Revenue analysis helps to assess how much money was received in a specific period and how much this data corresponds to the planned indicators.

Methods of revenue analysis:

Comparative analysis of revenue for different periods, which allows you to identify trends and assess the dynamics of growth or decline.
Influencing factors are estimates of external factors, such as changes in pricing policy or advertising campaigns, which can affect revenue levels.
Revenue forecasting based on current data and trends.

The cost of a product or service is the sum of all costs associated with the production or purchase of a product. Cost analysis helps to identify how efficiently resources are used and where costs can be reduced.

Analysis methods:

Comparison of cost with revenue, which helps to understand what percentage of income is spent on covering costs.
Finding bottlenecks in the production process or supply chain that lead to unnecessary losses.
Margin assessment, which shows how much profit the enterprise receives for each ruble of revenue after taking into account costs.

Discounts are a sales promotion tool, but it is important to properly track how they affect the overall profit of the enterprise. Discount analysis allows you to understand how effectively they are used without reducing profitability.

Analysis methods:

Discount level assessment — calculation of the average discount amount on a product or service, as well as the discount percentage in relation to total revenue.
Discount dynamics analysis — how often discounts are provided and what changes in sales occur after their introduction. Assessing the impact of discounts on profit — calculating how reduced prices affect overall revenue and margin.
Analysis of the number of customers. The number of customers is an important indicator that helps to assess how many people are interested in the goods or services of the enterprise. This indicator is important for understanding the volume of customer flow and assessing the impact of marketing campaigns.
Traffic — assessment of the number of visitors to a store or website.
Conversion — the percentage of customers who made a purchase from the total number of visitors.
Repeat purchase analysis, which shows how many customers return for new purchases.

Marginality shows what share of revenue the company retains after deducting direct costs, such as the cost of goods. This indicator is important for assessing the financial stability of the business.

Analysis methods:

Margin assessment for each product — to identify the most profitable positions. Overall margin ratio — analysis of the overall margin at the company for a certain period. Comparison of marginality with competitors, which allows you to assess the effectiveness of trading in the market.
Analysis of sales profit. Sales profit is the difference between revenue and all expenses associated with the sale of goods. This is one of the main indicators of business efficiency, as it reflects real financial results.
Evaluation of net profit — an indicator that takes into account all expenses and income associated with sales.
Analysis of profit for each product — allows you to determine which products bring the greatest profit and what is the reason for the decrease in profitability in some positions.
Profit forecasting, which helps to estimate future income taking into account current indicators.

Return on sales shows how effectively a company converts its sales into profit. This indicator is critical for assessing the viability of a business.

Analysis methods:

Evaluation of profitability for each product.
Calculation of profitability at the company level - to assess overall sales efficiency.
Comparison with market rates of profitability.

Gradus Retail Index is a modern service for sales performance analytics that provides businesses with a powerful set of tools for conducting analysis. With this tool, you can quickly collect data on all key trade indicators, from sales volume to profit.

Automated reporting: Gradus Retail Index algorithms allow generating data for all key indicators, which significantly reduces the time for data processing.
Interactive analytics: A simple and intuitive interface allows users to conduct detailed analysis using filters, graphs and charts.
Forecasting: The service provides powerful tools for forecasting revenue, profit and other indicators based on historical data.
Support for multiple analysis methods: The platform covers all possible analytical methods, from assessing margins and profitability to analyzing price dynamics and promotional effectiveness.
Support for working with big data: Gradus Retail Index allows you to effectively work with large volumes of information, which makes it an excellent choice for large enterprises with high turnover.
Using the analytical data from Gradus Retail Index, the company's manager and commercial director will be able to better understand which products bring the greatest profit, which marketing strategies work, and where there are opportunities for growth.