B2B sales glossary
Sales growth = (sales this period − sales last period) ÷ sales last period × 100. It shows, as a percentage, how much revenue grew or shrank between two periods.
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Sales growth compares two equal periods — month on month, quarter on quarter, or year on year. A positive number means growth, a negative number decline.
For growth over several years, use the compound annual growth rate (CAGR): (ending value ÷ starting value)^(1 ÷ number of years) − 1. It smooths out the ups and downs into one yearly rate.
Quarterly sales for a company, and the growth between each quarter:
| Quarter | Sales | Growth vs previous quarter |
|---|---|---|
| Q1 | ₹1.00 cr | — |
| Q2 | ₹1.15 cr | +15.0% |
| Q3 | ₹1.10 cr | −4.3% |
| Q4 | ₹1.32 cr | +20.0% |
Worked example — illustrative numbers. Sales in ₹ crore.
| Term | In one line |
|---|---|
| MRR | MRR (monthly recurring revenue) is the predictable revenue a subscription business earns every month from active subscriptions, normalised to a monthly amount. |
| Sales Trend | A sales trend is the directional movement of sales data — volume, revenue, conversion rate — over time. |
| Sales Volume | Sales volume is the total number of units (or deals) sold over a defined time period. |
| Sales Velocity | Sales velocity = (Number of Opportunities × Average Deal Value × Win Rate) ÷ Sales Cycle Length. |
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Subtract last period’s sales from this period’s, divide by last period’s sales, and multiply by 100.
Use CAGR: (ending value ÷ starting value)^(1 ÷ years) − 1.
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