Revenue reports are one of your biggest windows into your business. Regardless of how you perceive your product, sales team, marketing, and customer service, the best indicator of success is how much money you’re bringing in. Because let’s face it: brand impressions and friendly sales reps aren’t going to keep your doors open and lights on.
And while you might be tempted to focus only on your bottom line, your revenue reports can actually divulge a lot more about your business’s success.
Important metrics you should measure
These five key figures can not only help you gauge your overall profitability, but also help you find where your greatest success is coming from so you can double down on what works:
1. Total Revenue
The total revenue is the amount of money your company generates in a given time period. Companies can look at total revenue by the day, week, month, and year to detect trends and patterns over time and make accurate predictions for the future.
For example, you may find that a certain time of year is sluggish in sales. This might be an ideal time to launch a new campaign to fill in the gaps.
2. Revenue by Customer or Account
The Pareto Principle states that about 20% of your customers account for 80% of your sales. This isn’t exactly a hard number, but it’s common for a small portion of a business’s customers to make up a majority of its sales.
Ideally, you can identify who these top spenders are and optimize your relationship with them. For example, you might place them in a special VIP marketing group that provides them with exclusive discounts or ensures they’re the first to hear about sales or other events.
Remember, these are the people who are most likely to spend money with you. It’s essential to prioritize your connection with them to encourage their ongoing patronage.
3. Most Profitable Traffic Source
Businesses get leads from a variety of locations (e.g. website traffic, social media, lead magnets, paid ads, etc.). Most companies look at each lead source to see what’s working and what’s not in terms of engagement and conversions, but many fail to overlook the actual revenue brought in by each source.
The number of conversions doesn’t matter as much as the hard dollar amount each of those conversions is worth. More conversions don’t always equate to more revenue unless you only have one product to sell.
Your revenue reports should break down the revenue by lead source so you can see where your most profitable deals are coming from.
4. Most Productive Sales Rep
Not all sales reps are created equal. Every organization has their top performers — the ones who always hit quota, always follow up with leads, and never miss an opportunity to drive more sales.
There are a lot of ways to measure sales performance, but a sales rep’s worth ultimately comes down to revenue. Typically, the more productive a sales rep is, the more revenue they bring in. But the correlation isn’t always direct, especially when you compare revenue vs actual profit.
Tracking revenue by the sales rep (especially over time) gives you direct insight into who is pulling their weight in your sales department. You’ll be better positioned to recognize coaching opportunities and potential issues before they can have a devastating impact on your bottom line.
5. Most Profitable Product or Service
If you offer more than one product or service, it can be challenging to identify what your best seller really is. It’s not just the product or service you sell the most of, but rather how much revenue that product or service brings in (and ultimately how much profit you earn from it).
The above metrics will, of course, help you keep a tab on your revenue streams. But you can also use revenue reports for sales forecasting, aligning marketing, sales, and revenue teams such as RevOps, and formulating strategies to scale efficiently.
Generate Revenue Reports with LeadSquared!
Are you struggling to create accurate revenue reports? Keeping your finger on the money pulse is one of the most important things you can do for your sales organization. It not only helps you maintain a healthy bottom line and set realistic sales goals over time but also allows you to coach your team and set them up for success.
LeadSquared can help you keep track of revenue by providing an all-in-one tool to measure and monitor your success. By tracking individual sales rep performance, lead sources, and customer lifetime value, you gain instant insight into your revenue picture and can make informed business decisions on how to proceed.
Try LeadSquared free for 15 days and discover a better, faster path to revenue management!