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Using your data to make decisions for your business
Data is becoming an increasingly central aspect of the decision making process. Providing quantitative reasoning, data empowers businesses to make smarter decisions. MIT Center for Digital Business conducted a study and found that businesses that are data-driven had 4% higher productivity and 6% higher profits than the average. Whether a large multi-location businesses or independent operators - it is important to leverage data to draw out insights about a business and turn those insights into profits.
If utilizing data sounds like something that is exclusive to larger businesses, the great thing is that data is becoming increasingly accessible as technology plays a larger role in our processes and operations, and likewise is becoming increasingly easier to understand and analyze. The brick and mortar industry - restaurants and retailers - have the opportunity to leverage their modern point of sale and management tools, grab data, and use that data to set their business apart. Take a look at five types of data to utilize in your decision making.
Sales data provides the hard performance numbers and key trends as it is collected over time, enabling you to answer questions like – What is our monthly revenue? How many of each item are we selling per week? How much money are we bringing in each day, are we hitting our goals? And the longer term questions like, how much revenue did we bring in last year?
Beyond answering those and other key questions, your sales data enables businesses to analyze and plan with increased accuracy. Using a POS that tracks sales information over time, provides decision makers with the opportunity to look at that historical data and make the right moves.
Let’s say, for example, it is clear from your data that Sundays are consistently your slowest day of the week- and have been for a number for months. You can take that information and make adjustments to your operations such as increasing marketing, offering a promotion to get more customers in the doors on Sundays, or even decide to limit hours on Sunday. Whatever the decision may be, your data provided a clear picture, indicating that if you want to see different numbers, there should be action taken.
Employee reports provide detailed insight into how your team impacts the business. Labor reports can provide information on your labor spend in a given period of time, indicate who your highest performing employees are, and enable you to better forecast your needs.
Additionally, linking performance and holding employees accountable based on data provides a clear and fair process for rewards and discipline. A POS, like Revel, ties every purchase to the employee who was logged in – providing a clear tie between sales and individuals. If your business if commission based, it is now easier than ever to ensure you are properly compensating your team for the effort they are putting in.
While you may use the same number of employees for every shift, comparing your employee data to your sales data can help you identify your real staffing needs:
How are your inventory levels? Which items are the fastest movers? Do you have the right amount of ingredients to last until the next delivery? Inventory reporting data helps you answer these critical questions. To ensure you have the items your customers really want, you need to make sure you’re buying the right items. Inventory analytics can quickly show you which items are moving and which aren’t.
The most effective inventory management tools integrate directly into the point of sale to seamlessly update inventory levels as sales are made. Reducing the manual aspect of inventory management, integrated inventory management also reduces errors associated with manual processes.
In order to properly leverage inventory data, it is important to –
Setting up a process is important in keeping yourself accountable as well as building out a strong foundation for data. And with that foundation, you’ll reduce the challenges you may have faced in managing inventory.
If your POS system has a customer relationship management (CRM) system that captures your customers’ contact information and order history, you can track guest behavior. Use customer reports to identify customers who visited your restaurant the most or spent the most amount of money, and then send them a targeted email as thanks. Do a deep dive into individual customers, viewing detailed information like their average check, days since their last visit, and most frequently ordered items, to learn more about the guest experience at your restaurant.
Since data doesn’t exist in a silo, we’re going to circle back to sales data again. And because your sales and revenue are the lifeblood of your business, it is important to look at how to analyze your sales data against other business analytics for a full picture of business health.
There are many methods to analyze your data, a few common ways are:
Individually, each of these reports provides select bits of information you should be monitoring, but together, they paint a picture of the overall health of your business. If your business is not regularly tracking data in these areas, you are missing out on the opportunity to truly understand your business. Revel helps operators take the guesswork out of decisions by combining a full reporting suite into an easy-to-analyze dashboard.
As you track performance across these areas, you’ll begin to identify trends, it then becomes possible to take the guesswork out of growth and minimize risk with data-driven decisions. With regular analysis, you can see where you should invest your time and money in order to grow your business.
With Revel, you have all of the data you need at your fingertips. The Management Console – your business command center – features a robust reporting dashboard that automatically maintains a clear view of your operations. View real-time sales data, inventory, customer data, employee insights, and more! With over 40 reports, operators can efficiently view high-level performance insights through granular data. Want to learn more about Revel’s Reporting capabilities, Get a Demo with one of our Product Experts.