We have already learned that return on sales is a key metric that measures a company’s efficiency in generating revenue from sales. It is defined as the ratio of net profit to total sales for a given period, expressed as a percentage.
Key indicators that affect profitability:
Revenue is the amount received from the sale of goods or services. It can vary depending on pricing strategy, sales volume, and overall market conditions.
Manufacturing, service and marketing costs are all costs associated with manufacturing products, providing services and promoting them. High costs can significantly reduce profitability, even if sales are increasing.
Sales efficiency is an indicator that reflects how quickly and successfully a company sells products or services. It takes into account all stages – from attracting potential customers to closing the deal.
>Profitability analysis not only reveals the strengths and weaknesses of the business, but also provides valuable information for making strategic decisions. For example, if the profitability of sales is decreasing, it may be necessary to review costs, optimize processes, or change pricing policies. By understanding these aspects, managers can better respond to market changes and support the sustainable development of the company. To calculate this indicator, use the profitability of sales formula.
Sales profitability formula
The formula for calculating sales profitability:
Return on sales (%) = (net profit / total revenue) × 100
net profit — profit after paying all expenses, including taxes;
Total revenue is the total amount received from sales.
>Example: A company received 100 thousand hryvnias in revenue and has a net profit of 20 thousand hryvnias, therefore, its return on sales will be 20%, if calculated using our formula:
(20,000 ÷ 100,000) × 100 = 20%
Now you know how to determine profitability.
NetHunt CRM provides the necessary analytical indicators for calculating profitability, but the system does not currently determine it automatically.
With the help of this indicator, managers brazil phone number list find weaknesses in the sales process and make decisions about their improvement.
The role of CRM in increasing sales profitability
CRM systems play a vital role in optimizing sales by effectively managing customer interactions and automating key processes. With CRM, companies can reduce routine administrative work, so sales teams can focus on what matters most — closing deals and
What is return on sales? building long-term relationships with customers. This significantly increases the productivity and efficiency of each team member, which directly affects revenue growth.
CRM automates the entire sales cycle, from lead management to customer base analysis and audience segmentation. This means you can better understand your customers’ needs, tailor your offerings to their interests, and increase the likelihood of successful sales. Personalized customer communications built on CRM data help build loyalty and drive repeat purchases.
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How NetHunt CRM helps increase sales profitability
NetHunt CRM plays a key role in increasing europe email sales profitability by providing businesses with a wide range of tools to optimize processes and improve customer interactions. Thanks to the system, companies use resources more efficiently, reduce costs, and increase revenues.
Sales automation
The main advantage of NetHunt CRM is sales automation. The system automates routine tasks, such as processing customer inquiries, sending emails, reminders, or updates on deal status. This significantly reduces the amount of manual work, which can sometimes be time-consuming and error-prone. Automation saves the team time, so they can focus on more important aspects of sales, such as finding new customers and closing deals.
Reducing routine tasks also reduces operating costs and increases overall efficiency. Managers are working, not Googling “sales profitability formula.”
Analytics and reports
Another important aspect is analytics and reports in NetHunt CRM. The system generates convenient detailed reports on key sales indicators, such as the number of closed deals, conversions, average check, etc. Using this data, managers track the effectiveness of each sales stage, calculate profitability, identify weaknesses, and adjust processes in a timely manner.
With analytical data, you will make informed decisions about improving your business strategy and have the necessary indicators to calculate profitability.
Deals by Managers in NetHunt CRM
Report of deals by managers in NetHunt CRM
Lead management
NetHunt CRM effectively manages leads, which is an important factor in increasing the conversion of potential customers into actual buyers. The system automatically records every interaction with leads, tracks their movement through the sales funnel , and ensures timely communication.
The probability of successfully closing a deal increases because sales teams have full control over every step of customer interaction, you don’t have to worry about every interaction and think about what profitability is considered normal.
Process optimization
Another advantage of NetHunt CRM is process optimization. Thanks to integration with Google Workspace, CRM easily integrates with other tools in the company, thus ensuring smooth information exchange and automating important business processes. With this integration, you will effectively manage not only sales, but also marketing campaigns, increase team productivity and increase profitability.
Personalization of offers
In NetHunt CRM, you can create personalized offers for customers. Data in CRM is a tool for understanding customers’ interests and needs in order to provide them with products or services that best meet their requirements. Personalized communications significantly increase conversions, as customers feel more important to the business. They also reduce marketing costs, as precisely targeted campaigns produce better results for less.
So, NetHunt CRM not only automates processes and saves time, but also improves the quality of sales, making every interaction with customers as efficient as possible.
Remember that overall profitability is the result of a company’s communication work.
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How sales profitability changes with NetHunt CRM
Companies using NetHunt CRM significantly improve sales profitability through process automation, increased teamwork efficiency, and better control of business processes.
Thanks to CRM, businesses receive analytics tools that allow them to find weak spots, calculate profitability, and stop thinking about how to increase sales .
Without NetHunt CRM :
there is no control over customers, which leads to lost deals;
routine tasks take a lot of time and lead to errors;
it is difficult to maintain up-to-date customer data and track the team’s performance;
Sales processes may not reflect the real state of affairs, which complicates management.
NetHunt CRM optimizes operations and significantly increases sales profitability in terms of net profit. Below we will tell you how various companies have achieved success thanks to NetHunt CRM.
Real cases NetHunt CRM
Carpathia
With NetHunt CRM, insurance service Karpatia significantly improved conversion through automation and detailed processing of potential customer inquiries. The company changed the structure of the sales funnel to better reflect real business processes and set up control over each stage of the deal. In addition, they automated routine tasks, and the time to process customer inquiries was reduced by 2.5–3 times.
WebPromoExperts
Thanks to NetHunt CRM, the Internet marketing academy WebPromoExperts created a single customer database. The company optimized service and reduced the number of errors. They set up several transaction lines to better.
Through automation, the company significantly reduced the number of routine tasks, making the work of teams easier and increasing the efficiency of communication between departments.
