The holidays are upon us and to ensure success, it’s important to take a look at what worked in the past. In this blog post, we’ll show you a few ways you can use your royalty reports to analyze the last holiday season.
To find all of your royalty reports, go to your earnings page where you will find three royalty reports on the left-hand side including Royalty Totals, Royalty by Product, and Royalty History. Today, we’ll be focusing on the two latter reports.
Royalty by Product
We’ll start with the royalty by product report which can give you a quick overview of your top design performance during a specific time period. First, select ‘custom date range’ in the ‘Time Period’ field. In the example below, we will review November 2016.
Once you click ‘Done’ you will see the specific product, sales and royalty information.
Here you can review which of your designs and product types had the most (and least) sales and from which designs and product types you earned the most (and least) royalties. This provides an overview of what designs and design variations are working for you and what product types you should definitely include for next November designs.
Next, let’s take a little deeper dive into your holiday success by reviewing your Royalty History report.
Click on the Royalty History report link, select your time period just like in the example above.
Once you have selected your time period, click ‘Done’ and download the CSV document at the bottom of the page.
Next, use the filter function to review all of your entries. Select all of the columns in your worksheet, click on the ‘Data’ tab and select the ‘Filter’ function. You will notice an arrow will appear at the right side of each column.
Use the arrows to filter out certain products, product types, referral status.
You can use this functionality to answer questions like: which product types are the most popular? how many products were referred? how many products were customized? what store is the most popular?
Your top product types can tell you which designs and product types you should focus on. We encourage you to design for all products, but you should always be designing for your top-selling products as well.
Take a look at your referred products. Which product types and designs are being promoted? Create products with similar aesthetics to engage more promoters.
For customized products, learn from your designs. Did you have template fields set up? What is the product type?
Take a look at your most popular store. How is the store organized? What is the store theme? What do your category images/store banners look like? What differentiates this store from your other stores?
Are you a visual person? Let’s create a graph from the data on your Excel sheet. For this example, we’ll use the royalty information to graph it against the date. This will make it easier for you to see the peak days for the month.
Highlight the date column, hold down the CTRL button, and then highlight the Royalty USD column. Next, click on the ‘Insert’ tab and select ‘Recommended Charts’. Choose the graph that you prefer, select it and click ‘Ok’.
Once you click ‘Ok’ you can see your chart and review the royalty activity by date during the time period you selected in your report.
Analyze your royalty and sales growth year over year (YoY) to see how you performed this year compared to last year.
For this calculation you will need data for the same time period for 2016 and 2015. The YoY equation is as follows: (Year 2 – Year 1)/Year 1 x 100 = Change YoY
In this example, we will look at the royalty amounts for November 2016 compared to November 2015.
If your royalties for November 2016 are $363, and your royalties for November 2015 are $255, then your YoY growth will be:
($363-$255)/$255 x 100 = 42% YoY Growth
This means your business grew by 42% this year, so what did you do differently? Did you promote more? Did you create more designs? Did you focus on certain themes or create different products that you haven’t before? Did you lower your royalties?
Similarly to YoY calculations, you can compare data month over month (MoM.) This information is helpful to keep track of seasonality. For example, if last year your sales grew by 7% from October to November, then you should expect similar growth from October to November this year.
Here you will need data from 2015 and 2016 for both months October & November. The MoM equation is as follows: (Month 2 – Month 1)/Month 1 x 100 = Change MoM
|2015||$838||$900||($900 – $838)/$838 x 100 = 7%|
|2016||$914||$817||($817-$914)/$914 x 100 = -11%|
In the example above, it looks like your business grew by 7% last year from October to November, but declined by 11% this year from October to November. What was different this year? Did you stop promoting? Did you create different designs? Did you create less designs?
We typically recommend that you review all three months of the holiday season: October, November, December and calculate your YoY and MoM changes. Review all of your top designs, product types, your most promoted designs, and your store categories. You can learn from your top sellers and let go of under-performing designs and strategies. By reviewing your past sales, you can set a plan to ensure your success for next year.
Have any tips for analyzing your royalties? Share with us in the comments below.