Hi All,
I am working on Week1 Power BI Accelerator Challenge Hands-On
How many sales did they make of their Top 5 Products each quarter?
(i)Now,my doubt is whether we have to group the TOP 5 products on “Revenue earned” or “Quantity Sold”?
When I am checking as per Quantity-Sold as a criteria ,it is giving totally different group of products.
Which is the best approach when we are handling any Retail data?
Hello Nisha,
As a general rule of thumb the most important metric for any business is the revenue as the main goal of a business is to generate revenue, or going even further, margin as I am most interested in what is staying into my pocket.
By ranking it using quantity sold you would put more importance at the products that are sold with big quantities over high revenue per unit sold products. To demonstrate my point, here is a hypothetical month results
In this example, if I rank it by total quantity sold, I will top 5 products, that contributed just 1,76% revenue
If I rank it using total revenue, then those 5 products I show contribute almost 98% of total revenue
So unless there are some special business cases when you are more interested in quantity sold, more importance should be placed at the total revenue.
I hope that’s helps
Thank you so much for such a nice reply with hypothetical example
