What is sales growth?
Sales growth measures the increase or decrease in your sales from one period to the next, shown as a percentage. A positive percentage means your sales have increased. A negative percentage means your sales have decreased.
How is sales growth calculated?
Sales growth is calculated as:
Current period sales / previous period sales -1
For example, if your sales in the current period were 1,500 and your sales in the previous period were 1,000, your sales growth would be:
1,500 / 1,000 - 1 = 0.5
Sales growth is presented as a percentage, so 0.5 becomes 50%.
How can I compare my sales growth to industry averages?
Link My Books benchmarking feature allows you to compare your sales growth figure with other businesses of similar size selling on the same channel.
On the bell curve, you will see the median, lower quartile and upper quartile figures. These represent how other businesses in your cohort are performing.
Your result is shown in comparison to these industry averages and is placed into one of the following 4 quartiles:
For sales growth, a higher percentage is better.
Tips to improve sales growth
Anything that drives an increase in your sales revenues will ultimately lead to an improved sales growth figure.
Here are 10 ideas to help you increase sales (written by Chat GPT):
1. Optimise Your Website for Mobile Users:
Ensure that your website is mobile-friendly. Many users shop on their smartphones, so a seamless mobile experience can lead to increased sales.
2. Improve Product Descriptions and Images:
Enhance your product listings with high-quality images and detailed, compelling descriptions. Clear and informative content can help potential customers make informed purchasing decisions.
3. Implement a Customer Loyalty Program:
Reward repeat customers with a loyalty program. Offer discounts, exclusive deals, or points for every purchase, encouraging customers to return to your store.
4. Offer Limited-Time Promotions:
Create a sense of urgency by running limited-time promotions or flash sales. Highlight the scarcity of the offer to prompt quicker decision-making.
5. Use Social Proof and Reviews:
Display customer reviews and testimonials prominently on your website. Positive feedback builds trust and credibility, influencing potential customers to make a purchase.
6. Utilise Email Marketing:
Build and segment your email list to send targeted campaigns. Share new product launches, exclusive offers, or personalised recommendations to keep customers engaged.
7. Implement Abandoned Cart Recovery:
Set up automated emails to remind customers about items left in their shopping carts. Provide incentives like discounts to encourage them to complete the purchase.
8. Collaborate with Influencers:
Partner with influencers in your niche to promote your products. Influencers can introduce your brand to a wider audience and lend credibility to your products.
9. Improve Website Loading Speed:
Optimise your website's loading speed to reduce bounce rates. A faster website provides a better user experience, making it more likely for visitors to stay and make a purchase.
10. Personalise the Shopping Experience:
Implement personalisation features on your website, such as recommended products based on past purchases or user preferences. A personalised experience can increase customer satisfaction and drive sales.
Remember to track the performance of these strategies using analytics tools to understand what works best for your ecommerce store and continuously optimise your approach.