Focus: Sales Revenue Reporting

Sales revenue can be reported in an endless number of ways. Sales revenue reports should help your business to answer marketing questions and they sometimes create new questions. These reporting disciplines can be applied to both B2B and B2C companies with some adjustments.

1.     Sales Revenue by Selling Channel- if you have coded your customers by the selling channel they are assigned to, you will have the opportunity to review the amount of sales revenue generated by each of your selling channels. The sales revenue by channel is necessary to calculate the ROI per channel.  The ROI will help you to determine where to put your resources for the most profitable sales revenue generation.

2.     Sales Revenue by Customer Type/Industry- if you have coded your customers by type, you will be able to review your sales revenue by the customer type they represent. In a B2B company, the type may be defined as an industry and can be coded with NAICS code. In B2C companies the customer types may be based on demographic or psychographic data. The sales revenue by customer type will allow you to calculate an ROI by type/industry and then you can acquire & retain the most profitable types of customers.

3.     Sales Revenue by Product or Service- if all of your products and/or services are coded and used in your order entry system, then you can determine sales revenue by product/service. It may be necessary to code items to identify both an individual item and a group to which it belongs, then you can review sales by individual products and by product grouping. Calculate the ROI and focus on the most profitable products.

4.     Sales Revenue by Geography- if you have kept complete customer records with fields of geographic data, you can determine your market penetration by geography. Dependent on how you want to grow your business geographically, this information will show you gaps in penetration. This information could help you to decide where to put a new retail store, add a new sales representative, increase marketing promotional activities etc.

5.  Sales Revenue by Marketing Promotion- if you can enter source codes in your order entry system to identify specific marketing promotions and you assign sales to those promotions, you will able to track sales and measure results of all marketing promotions. Once the ROI is calculated for each promotion, your decision of where to spend your marketing dollars is easy to make.  Plan-Implement-Track-Measure-Analyze-Make informed decisions.