Sales and Revenue Analytics

What questions can sales analytics answer?

• How much did we sell, and is it growing?
• Which products, regions, or channels drive revenue?
• Are customers buying more often or spending more per order?
• Is there seasonality (festive peaks, month-end spikes)?
• Are we growing profitably?

Revenue alone doesn't show margin, customer count, or whether sales were later returned.

Core metrics

Revenue decomposition: Revenue = Number of customers × Orders per customer × AOV

This shows which lever changed: more customers, more frequent orders, or bigger baskets.

Example

Revenue rises from ₹5 lakh to ₹6 lakh:

Growth = (6 − 5) ÷ 5 = 20%

Before calling this healthy growth, check:

How it works

• Break totals down by:
  • Time (day, week, month, quarter)
  • Product / category
  • Channel (website, app, store, marketplace)
  • Region
  • Customer type (new vs returning)
• Comparison types:

• Handle cancellations, returns, taxes, and discounts consistently across periods.

Common mistakes

• Full month vs partial month comparisons
• Mixing gross and net revenue
• Ignoring seasonality (comparing Diwali month with an ordinary month)
• Ignoring margin: high revenue at low or negative margin
• Including or excluding taxes inconsistently

Try it: Calculate month-on-month revenue growth and identify two additional metrics you would check before recommending a sales strategy.