Sales management is the lifeblood of a business. It includes many responsibilities which ensure that a company can continue to be successful. One of these crucial responsibilities involves tracking key metrics that are unique to your industry. Restaurant managers look closely at labor cost percentages, food cost percentages, and inventory turnover rates. The same is true for bars, but of course, the percentage of business derived from alcohol sales to food is much higher. Retail stores are concerned about conversion rates, sales per square foot, and shopper demographics. All industries are concerned about the cost of goods sold (COGS) and shrinkage or product loss.
As an experienced business owner, you likely have your own set of numbers or percent ranges to help keep you on track with profitably. That’s great! Fortunately, POS software systems are available today that can quickly track more sales management metrics than you ever have before.
If there was ever a time that we thought business could be entirely unpredictable, that time is now. We are pushed to take into consideration the threat of more than just computer viruses. Small inefficiencies that we permitted before because they were non-material can now cause a company to dip into significant profit loss. The good news is that you don’t have to do all the thinking when you have a robust suite of POS sales management reporting tools at your fingertips.
Sales Management Metrics in Business and Employee Reports
The most valuable assets to having your doors open each day are your employees. They have ranges of talents but sometimes face challenges like the rest of us. POS systems can generate a wide array of reports that serve as “eyes and ears” to help you keep your employees productive and performing their best.
Older POS systems didn’t always allow you to run a report on product type sold by employees. With more advanced, modern systems, you can now track who is better at selling which products and use those metrics to incentivize your employees to make more sales.
Note: Be careful when you select a vendor since most POS solutions don’t offer the product type sold by employee tracking feature.
Sales management metrics in cloud-based POS systems allow you to track timesheets all in one place, too. Track the number of voids and use the report as a training opportunity. Employees enter their ID into the POS to see if they are on track with their sales goals.
Metrics of Order Quality
Size matters. With the right POS system in place, you can review which products are sold most frequently together and margins on sales bundles. Perhaps, you can offer a discount to increase the number of sales on your most popular order combos. You can potentially increase your average ticket size when you can access information with such specificity. POS with sales management metrics also can reveal how you can more efficiently:
- Increase the number of items sold per ticket
- Increase the average ticket dollar value
- Increase the turnover of more high-margin items
- Discontinue products that cause the most refunds
- Control plate and drink cost ratios
Take a deep data dive to improve business profitably during a time when revenues face an unusual uphill climb.
POS Customer Tracking Metrics
Another key area to focus on is gaining access to the metrics for customer relationship management (CRM). It pays for you to know what your customers order and how often. Maintain stronger relationships with your clientele with POS systems that integrate contact information, order preferences, and customized notes in a secure environment.
Also, consider what the average customer lifetime value (CLV) is for your store using the following formula:
Customer lifetime value (CLV) =
Average annual revenue per customer
x Customer relationship in years
– Customer acquisition cost (marketing and other expenses)
Taking a fresh look at the make-up of your business revenue is a proactive way of staying ahead of the curve. The data behind the revenues can uncover whether you should increase, decrease, or hold steady the marketing dollars spent to acquire and retain each customer.
Run a report on the number of new customers that came in last month. Create an incentive for them to provide contact info, such as a discount or a free low cost item on their next visit. Finally, thank you notes to first-time and long time customers are well-received gestures.
Can Your POS do the Heavy Lifting?
Expect more from your POS solution when you partner with talech. Sales management metrics are becoming more crucial to making businesses profitable under unfavorable conditions. The team at talech has many years of experience and hours invested in creating world-class sales management tools in a feature-packed and friendly POS solution. With a great POS system working on behalf of your business, you can better leverage sales management metrics for employee management and customer retention.
When you partner with talech for your retail technology needs, we devote our time to identifying your business challenges. We use this information to provide you with an innovative POS solution that levels the playing field. Reach out to us today to sign up for a demo and to learn more about how talech can be your valued POS partner.