The sales section of the Benchmark report provides a high level overview of the business's performance in the previous year with KPIs such as Revenue Growth and AOV. The insights can be used to identify whether the business is growing as fast as possible and whether its is overly reliant on one marketing channel or one type of customer.
KPI definitions and interpretation
Year-on-Year Revenue Change (%)
This KPI details the growth rate of revenue during the last year compared to the previous 12 months. The metric is calculated from Brightpearl data, evaluating all sales orders and credits during the period.
- Where the KPI is lower than the benchmark, this indicates the the business has grown slower than its peers
- Where it's higher, this indicates it grew faster
This comparison provides context to your sales, allowing you to determine whether performance was as good or as bad as thought.
Total Revenue by Customer Status
This KPI details the percentage of revenue that the business generates from new or returning customers. These metrics are calculated from Brightpearl data, where customer records with previous sales orders are considered to be returning customers.
- Where the KPI is higher than the benchmark, the business generates more revenue from this type of customer than its peers
- Where it's lower, it generates less revenue from this type of customer
This metric offers a glimpse into the health and scalability of the business. If very little revenue is generated from existing customers it could signify that the business relies too heavily on customer acquisition - a very expensive way to drive revenue! It may also indicate that the product in't sticky enough as customers aren't making additional purchases.
If very little revenue is from new customers, it could signify that spend on new customer acquisition is low - an opportunity for business growth!
Revenue from Top Quintile of Customers
This KPI details the proportion of revenue generated by the top 20% of customers based on customer value.
We aren't currently able to provide a benchmark for this KPI. However, most businesses receive a large proportion of revenue from a subset of customers. This is especially evident in businesses supplying luxury goods. Where this is the case, the business is at risk from any factors that adversely impact these customers.
Average Order Value (AOV)
This KPI details the average value of sales orders. This is the average across all sales channels in your Brightpearl account.
A higher AOV offers more flexibility in various aspects of the business as there is a greater ability to absorb additional costs without adversely affecting underlying margin. For example:
- Internationalization. Operating in other countries where postage costs and taxes can vary considerably.
- Acquisition spend. The business has more freedom to spend more on acquiring new customers.
Monthly YOY Revenue Change
This chart details the growth rate of monthly revenue over the same month in the previous year.
This chart adds further context to the YOY revenue change metric. It can identify whether an under- or over-performance occurred across the whole year or just in particular months.
Total Revenue by Marketing Channel
This chart details the percentage of overall revenue generated via each marketing channel.
- Where the KPI is higher than the benchmark, the business generates more revenue from the channel than its peers
- Where it's lower, it generates less revenue
This chart shows if the business is overly reliant on specific marketing channels to generate revenue. This often relates to paid or non-branded channels vs. branded channels.
A business overly reliant on paid channels may have a less well known brand or may not focus on brand at all, while a business overly reliant on branded channels may have an opportunity to accelerate performance by spending on non-branded channels. This likely signifies a strong brand.