Formula
SGR = ((Current Period Sales - Previous Period Sales) / Previous Period Sales) * 100
Know your metric
Importance of
Sales Growth Rate
Indicates overall business health and effectiveness of sales strategies.
Performance Measurement
Direct measure of sales performance over time, indicating the success of sales strategies.
Goal Setting
Useful for setting and tracking performance against sales goals.
Market Position
Helps assess market position and competitiveness.
Drawbacks of
Sales Growth Rate
Short-term increases may not indicate sustainable growth.
Volatility
Can be highly volatile and influenced by external factors such as economic conditions and market changes.
Not Indicative of Profitability
High sales growth does not necessarily translate to profitability.
Short-term Perspective
Often focused on short-term results, potentially encouraging decisions that aren't beneficial in the long term.
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