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What is Sales Growth and Why Should Your Business Care?

Picture of Ian Spencer By  Ian Spencer  ·  1 minute read

What Exactly is Sales Growth?

Sales growth means your business is earning more money now than before. It’s when your revenue keeps going up—like when your favourite football team scores goal after goal. Businesses measure this growth each quarter or year.

Why is Sales Growth Important?

Sales growth isn't just numbers on a spreadsheet—it shows your business is healthy and successful. Here’s why it really matters:

  • Healthy Business Check:
    More sales mean your business is strong. You're not just getting by—you're growing and succeeding.

  • Attracts Investors:
    Investors love growing businesses. When your sales increase, investors notice, bringing even more money your way.

  • Opens Opportunities:
    More revenue means more options. You can hire great talent, enter new markets, or launch exciting products. Growth is fuel for your biggest ideas.

How Do You Measure Sales Growth?

Use this simple formula to measure your growth clearly:

Sales Growth Rate = [(Current Sales - Previous Sales) ÷ Previous Sales] x 100

For example:

  • Last year’s sales: £100,000

  • This year’s sales: £130,000

That’s a 30% sales growth rate. Simple, right?

Assessing Your Current Sales Performance

To boost your sales, first know exactly where you stand. Like planning a trip, you must know your starting point clearly.

What to Assess:

  • Revenue Breakdown:
    Look closely at total sales. But go deeper—check sales by product, customer type, and regions. Details matter!

  • Key Metrics (KPIs):
    Track these important sales signals:

    • Sales growth rate

    • Conversion rate (turning leads into sales)

    • Average deal size

    • Sales cycle length (time from first contact to sale)

    • Customer acquisition cost

  • Sales Pipeline Health:
    Check how smoothly your leads become customers. Are they stuck? Or moving fast?

  • Sales Team Performance:
    Find your top performers. Learn why they succeed—then use these insights to help everyone improve.

  • Customer Feedback:
    Listen carefully to customers. Their feedback tells you exactly what you’re doing well—and where to improve.

  • Competitor Analysis:
    Compare your sales performance with competitors. Know if you're leading or chasing.

  • Sales Process Efficiency:
    Ensure your sales methods and teams are working smoothly. Clear teamwork between sales and marketing means more sales.

Assessing carefully means you can clearly see where you need to grow. Now you’re ready for action!

Check out some other related articles:

Customer Segmentation: Strategies for Effective Growth Marketing

Account-Based Marketing (ABM): The Ultimate Guide for B2B Success