Every business wants to glean actionable reports from sales data so they can improve performance, but there are so many places to start that it can be challenging to dive right in. These 3 simple reports are the perfect place to get started leveraging data-driven insights to improve your business.
In order to make the largest profit margin and to ensure a steady supply of inventory, you need to know which of the items you sell are the most popular. Once you know what sells well, you can take advantage of economies of scale to invest heavily in popular items or run a sale to increase numbers before the end of the month or quarter.
Without running this type of report, you risk selling out of your most popular styles, colors, or items, leaving money on the table.
- What is the most profitable time of day for business?
The busiest time of day for your retail store may not line up with the most profitable time of day. By knowing when you usually sell the most, you can schedule your rockstar employees. You can also schedule fewer staff on hand during times that are historically slow, saving money and ensuring that staff are not on hand with nothing to do.
If you’ve ever had a novice team member provide poor service to an important customer, or fail to upsell a big order, running this report can solve that problem. This report can also motivate staff during peak seasons, by encouraging one sales team to outsell the other.
- Where are you making money and, more importantly, where are you losing money?
Do you know, generally, what areas of expense are returning their investment with sales and which expenses are not paying off? New signage or brighter lighting may make it easier for customers to find what they need in your store, resulting in fewer staff inquiries and more sales. On the other hand, if you invest heavily in something (like lighting) and it does not return investment, then you are losing money.
No matter what CRM you use, you should be able to run these basic reports. When you start running these reports regularly, you can keep your customer service, sales, and marketing team members accountable. You’ll avoid rushing into decisions or running out of product, because you know key data points. As a result, you’ll perform better and avoid stress.