Sales Lift Calculator

What Is Sales Lift? 

Sales lift refers to an increase in sales when businesses run a specific marketing campaign during a particular period. It is a way for marketers to measure the effectiveness of their marketing efforts and the return on investment of the marketing efforts.

Components of Sales Lift 

Actual Sales Amount: It refers to the total revenue generated by a business during a specific promotional period. 

Baseline Sales Amount: It refers to the revenue the company would have earned from normal business activity during the same period of time. 

How to Calculate Sales Lift

The formula for calculating sales lift is

Incremental Sales Lift = (Actual Sales Amount - Baseline Sales Amount) 

For instance, if on a regular month, the team earns a sales revenue of $2500, and after running a marketing event, the sales revenue is $3500, then,

Incremental Sales Lift = [$3500 - $2500] = $1000

$1000 is the incremental sales lift because of the marketing event

To determine the percentage increase in sales:

% Increase = [Incremental Sales Lift ÷ Baseline Sales Amount] x 100 = [$1000/$2500]*100 = 40%

This implies that marketing event led to a 40% increase in sales, for that particular month.

Importance of Calculating Sales Lift

1. Sales lift helps determine which customer profiles are most likely to respond to sales promotions. You can then tailor your promotional activities to specific audience groups to increase revenue. 

2. Sales lift helps measure the return on your marketing spending. It evaluates how these costs affect your overall profitability and allows you to allocate the budget for future promotional activities accordingly. 

3. The incremental sales lift can help in financial forecasting and evaluation. Managers can now know how sales and revenue will increase because of promotional / marketing activities, and forecast their revenues accordingly. This leads to improved financial planning and resource allocation.