Unlocking Success: The Essential KPIs for Analyzing Sales and Business Performance in Excel

   13 August 2024  Posted in marketing consultant in dubai

When analyzing data for sales and business performance, several key performance indicators (KPIs) are typically used. Below are some common KPIs along with their formulas in Excel:

 

  1. Total Sales (Revenue)

–     Formula    : `=SUM(SalesColumn)`

–     Explanation    : This KPI calculates the total revenue generated over a specific period.

 

  1. Sales Growth Rate

–     Formula    : `=((CurrentPeriodSales – PreviousPeriodSales) / PreviousPeriodSales)    100`

–     Explanation    : This KPI measures the percentage increase or decrease in sales compared to the previous period.

 

  1. Gross Profit Margin

–     Formula    : `=((TotalSales – CostOfGoodsSold) / TotalSales)    100`

–     Explanation    : This KPI calculates the percentage of revenue that exceeds the cost of goods sold (COGS).

 

  1. Net Profit Margin

–     Formula    :  `=(NetProfit / TotalSales)    100`

–     Explanation    : This KPI calculates the percentage of profit earned from total sales, after all expenses have been deducted.

 

  1. Average Order Value (AOV)

–     Formula    : `=TotalSales / NumberOfOrders`

–     Explanation    : This KPI measures the average revenue generated per order.

 

  1. Customer Lifetime Value (CLTV)

–     Formula    : `=AverageOrderValue    PurchaseFrequency    CustomerLifespan`

–     Explanation    : This KPI estimates the total revenue expected from a customer over the course of their relationship with the business.

 

  1. Customer Acquisition Cost (CAC)

–     Formula    : `=TotalMarketingExpenses / NumberOfNewCustomers`

–     Explanation    : This KPI calculates the cost of acquiring a new customer.

 

  1. Conversion Rate

–     Formula    : `=(NumberOfConversions / NumberOfVisitors)    100`

–     Explanation    : This KPI measures the percentage of visitors who complete a desired action (e.g., making a purchase).

 

  1. Churn Rate

–     Formula    : `=(LostCustomers / TotalCustomersAtStart)    100`

–     Explanation    : This KPI measures the percentage of customers who stop using your product or service during a certain time frame.

 

  1. Return on Investment (ROI)

–     Formula    : `=((TotalSales – TotalExpenses) / TotalExpenses)    100`

–     Explanation    : This KPI calculates the percentage of return on investment, showing the profitability of investments made.

 

  1. Inventory Turnover Ratio

–     Formula    : `=CostOfGoodsSold / AverageInventory`

–     Explanation    : This KPI measures how often inventory is sold and replaced over a specific period.

 

  1. Days Sales Outstanding (DSO)

–     Formula    : `=(AccountsReceivable / TotalSales)    NumberOfDays`

–     Explanation    : This KPI calculates the average number of days it takes for a company to collect payment after a sale has been made.

 

  1. Lead-to-Opportunity Ratio

–     Formula    : `=(NumberOfOpportunities / NumberOfLeads)    100`

–     Explanation    : This KPI measures the percentage of leads that turn into opportunities.

 

  1. Opportunity-to-Win Ratio

–     Formula    : `=(NumberOfWins / NumberOfOpportunities)    100`

–     Explanation    : This KPI measures the percentage of opportunities that turn into actual sales.

 

  1. Repeat Purchase Rate

–     Formula    : `=(NumberOfRepeatCustomers / TotalNumberOfCustomers)    100`

–     Explanation    : This KPI measures the percentage of customers who make more than one purchase.

 

By utilizing these KPIs and formulas in Excel, you can effectively analyze sales and business performance data to gain insights and make data-driven decisions.

Author: Hisham Kabir
An MBA with 18+ years of experience, spanning senior roles across multiple industry verticals as an account manager with B2B Sales & Business Development in Events and Marketing, Food Buying sourcing and procurement, FMCG, New Product Development, F&B, Catering & Banquet, End to End Event Operations Management. LinkedIn sales navigator expert. LinkedIn helper2 sales automation and Zoho CRM. Extensive functional expertise in successfully managing end-to-end aspects of F&B operations spanning the front and back-office operations within budgeted guidelines and to the highest standards. People Management – Experienced in recruiting, training and managing F&B teams - Most recently managed a 50+ strong cross-functional team. Proven track record of managing 400+ catering events including numerous high-volume corporate and social events with more than 5000 pax. Further to MBA, completed a Management development programme in sales management from IIM which is among the leading business management school in India. Later ventured into independent entrepreneurial business by launching and retailing a ready-to-cook food gravy paste brand using retort technology called freedom kitchen. With significant insights into front-end retailing and a strong background in the Retail Industry, I shifted to Corporate Path by joining a food-based FMCG company as part of their rural market expansion.  My expertise is in operational excellence, channel sales development, team management, client relationship development, and Event Operations Management. large ticket banquet Management, Menu planning, costing and P&L, and people management. Driven by a passion for advertising have conducted an exhibition titled walk through the history of Volkswagen beetle. where I showcased several print ads released by Volkswagen Beetle in North America from 1958 to 1971. You can follow blogs on www.buyologist.in dealing with trends in marketing and advertising and behavioural economics.