Evolution Index KPI Description
Very similar to Growth Index, the Evolution Index KPI is another way to measure a product’s sales evolution relative to the market’s sales evolution.
By analyzing this KPI, businesses can assess the effectiveness of their strategies, make informed decisions regarding resource allocation, and identify areas for improvement. A value higher than 1 indicates that the brand or product is growing faster than the market average, while a value lower than 1 suggests that it is underperforming relative to the market growth rate.
Formula:
$$
\text{Evolution Index} = \frac{\frac{\text{IndividualCurrentSales}}{\text{IndividualPreviousSales}}}{\frac{\text{MarketCurrentSales}}{\text{MarketPreviousSales}}}
$$
Configurable Parameters:
- Brand: Select from a list of available products or brands to track sales performance.
- Relevant Market: A relevant market is a set of products, including own products and competitor products that fit in the same category.
- Measurement: Choose the unit of measurement, such as units sold, revenue, or volume, to align market sales calculations with the relevant metric.
- Level: Choose from different levels of reporting:
- Rep: Sales vs. target at the individual sales representative level.
- Manager: Sales vs. target aggregated by team or manager.
- National: Sales vs. target calculated at the national or organizational level.
- Target Period: Define the start and end dates for the target calculation period to focus on specific time frames, such as monthly, quarterly, or annually.
- Allocation: Select the brick-to-territory allocation method to apply when calculating the target value (current), allowing analysis based on specific geographic or assigned territories.
- Reference Period: Define the start and end dates for the reference calculation period to focus on specific time frames, such as monthly, quarterly, or annually.
- Reference Allocation: Select the brick-to-territory allocation method to apply when calculating the reference value (previous), allowing analysis based on specific geographic or assigned territories.
- Data Source: Choose the source of sales and target data, which could come from different vendors or represent different types of sales data (e.g., Sell-In, Sell-Out).
- Channel: Select the channel of sales/target values, such as in-store, online, or wholesale, to isolate performance by sales channel.