fbpx Data is a key component in the success of your business. But, data doesn’t mean anything until you analyze it and understand what it’s telling you. Data analysis allows business owners to react to trends and capitalize on growth opportunities without requiring significant time or resources. Data offers insight into aspects of your business that you maybe never knew about or thought of before. It allows you to establish procedures for your inventory, salespeople, and customers that will help you run a better business. Knowing specific metrics, like your top sellers, the top performing salesperson, and your most loyal customers, will help you be the most informed retailer you can be. All of this data talk can be overwhelming, especially if you don’t know what data points you should be focusing on. There are a handful of metrics that we strongly recommend our clients track on a monthly, quarterly, and yearly basis. Key performance indicators (KPIs) allow you to track actual store progress against your goals. Keeping track of these KPIs allow you to better quantify your performance and to forecast expected profits and results. There are numerous KPIs that can be measured in order to assess a business’s success. Some include: • Return on investment (ROI)=profit during sales period/inventory cost over sales period • Best Sellers • Salesperson Analysis • Best Customer We believe that these are data points that you should be constantly tracking so that you have an idea of which products are making or losing your money, how your salespeople are performing, and which customers are your most loyal. Having technology that has the capability to track these data points and report on them is another essential component of your business. Retail technology enables you to be competitive by knowing which metrics to measure, what goals to set, and how to measure whether you’re reaching those objectives. Technology also allows storeowners to ring transactions on the POS, manage inventory, oversee employees, and store customer information and purchase history. With today’s high rate of technological growth, the compilation, storage, analysis, and reporting of data are crucial components of a company’s business strategy. If you want to learn more about how to use your data to its full potential, you can read the full guide here.