The world of retail can be unpredictable and challenging. However, it is also exciting and very gratifying when you're successful. To get there, you need to be prepared. Examining the proper data and reports in a cloud retail management and POS system is critical. This includes viewing inventory trends, gross revenue and being attuned to your client's shopping needs and habits. All merchants need to make a point of building a daily, weekly, monthly, and annual framework to make the most of their time and investments in their merchandise and customers.
Let’s focus on the top 5 reports a Manager should run daily using their retail reporting tools.
Invoiced Revenue for the Day
Viewing invoiced revenue for the day is a necessity as it reflects what sales were for the previous business day. This gives Managers an opportunity to analyze what went right and where they can make improvements in product marketing, staff selling, and customer relationship management. A quality cloud retail management and POS system will feature up-to-date information to view at your register including the average transaction value, average units sold per transaction, and your returns for the day. This report is critical as it provides a foundation to set up a plan of action and work towards meeting your new daily sales goal.
Cumulative Sales for the Year
As with viewing a daily sales report, running a cumulative sales report for the year is also highly valuable. This report reflects how a store is performing for the week, month, and quarter. This summary will also allow you to see and predict whether you are on track to meet, and hopefully exceed, the budget and sales plan that you have set in your retail management software.
Revenue Plan for the Year
To meet a sales plan, you need to know where revenue is coming from. Anyone can open for business, but to achieve success, the day needs to start with a plan. Using retail reporting tools, you can view your incremental sales and revenue along with customer retention rate. Are sales numbers consistently growing or slowing? Do your top clients still purchase with the frequency and amount they used to? These reports can show the effectiveness and profitability of your merchandising. The revenue plan for the year will also help you decide what changes, if any, to make including potentially hiring new team members, rolling out a new product line, or setting up a brief meeting with your marketing team to establish how you will meet or surpass your goal revenue for the year. Do not settle for accruing your goal revenue... double it!
Revenue by Day and Cumulative Revenue Compared to Last Year
The variance from this year to last shows how you are doing now compared with your product and selling performance the previous year. This is important information to arrange how you will meet your business objectives and where your position is in the retail market. With an advanced POS system, you have access at your fingertips to view your gross margin and gross margin percent for the period in real time. This highly effective measurement is a paramount feature for stock analysts and a company’s management team to show how they compete in the market. By also viewing your cumulative revenue compared to the previous year, over time, you are able to evaluate your cumulative average growth rate or CAGR. When your business is doing well and on an evident track to growth, everybody is a winner!
View Your Dashboard!
While this is not a full and extensive report to run, viewing your POS analytics dashboard is the best way to get an immediate snapshot of your day-to-day activity. Your POS software should provide simple, customizable and user-friendly charts on your sales dashboard including: today’s sales vs. the previous year’s sales, average unit sold price, average transaction value, and returns for the day. Along with this immediate and accurate sales information, the dashboard will also provide the user alerts on purchase orders expected, inventory transfers to fulfill, and sales orders to be invoiced just to name a few!
All 5 of these daily reports are important. Individually, they provide select bits of information, but together, they paint a picture of the overall health of your business. By running this information regularly, you can then see where to invest time, energy, and investments leading to a flourishing endeavor - lead by you!
Topics: Retail Tips & Techniques