How to use the gfknewron Market revenue decomposition feature

The Revenue Decomposition feature gives you a detailed breakdown of how and why your revenue has changed over time, by exploring distribution, price, and rate-of-sale factors

In this article, you’ll learn how to use the gfknewron Market Revenue Decomposition chart on the Overview page to access valuable insights into your brand’s performance. 

1. What is the Revenue Decomposition feature? 

The Revenue Decomposition feature helps you understand exactly how—and why—your revenue has changed between two specific time periods.

Revenue changes are broken down and attributed to price, distribution and sales-per-shop factors. This enables you to quantify the cumulative effect that these key KPIs have had on your brand’s performance. 

2. How to read the Revenue Decomposition chart 

Read the chart from left to right. The revenue generated during your earliest selected time period (comparison period) is displayed on the far left, while the revenue generated during your latest selected time period (focus period) is displayed on the far right.

The difference between these two figures is the sum of the positive or negative contributions that average unit price, number of selling shops, and average units sold per shop have made. For the example screenshot, this means that the three individual contributions of €–1.48m and €-1.14m and +€12.88m add up to the overall revenue change of +€10.26m.  

This data helps you identify how changes in price, distribution, sales per shop, or a combination of these have contributed to an observed difference in revenue performance.

For example, you can use the Revenue Decomposition chart to quantify the effect a price promotion had during a specific time period. Or, you can use it to gauge whether your current distribution is negatively impacting sales. 

3. Understanding the data displayed in the Revenue Decomposition chart 

The Revenue Decomposition chart displays data relating to three contributing factors. These are: 

• Unit price (the average selling price across all products of the selected brand) 
• Distribution (selling shops) (the number of shops that sold the selected brand) 
• Units sold per shop (the average number of units of the selected brand sold by a single shop) 

For each of these three factors, you’re presented with the following data:  

• The overall negative or positive effect that this KPI had on your revenue change (e.g. +€12.88m for Average Units per Shop in the pictured example) 
• The KPI in the focus period (e.g. 23.47 Average Units per Shop in the pictured example) 
• The change of the KPI vs. the comparison period (e.g. +8.98 Average Units per Shop in the pictured example) 

Learn more about each of these KPIs here:
KPI Glossary: Average price 
KPI Glossary: Selling shops  
KPI Glossary: Average units/revenue per shop

4. How to view revenue decomposition for a single channel or segment 

To view revenue decomposition for a single channel or segment, you need to apply the relevant filter in the Overview page.

Please note that the Revenue Decomposition feature is currently only available when you have selected only a single country and a single product group in the context bar at the top of the Overview page.