7 Product-Related Metrics You Should Monitor in Real Time
When it comes to managing your products, every retailer can be more efficient and profitable just by monitoring in the real time the following seven necessary metrics:
- Purchases – Not only should you track what products each customer purchases, but you should know the quantity of each item purchased by each customer as well as an average quantity per customer. Furthermore, you should know how many different products each customer purchases per transaction. Understanding these metrics will help you be more efficient at purchasing new products.
- Receipts – What is the average dollar amount spent per customer? What is the total receipts of all customers in a given period of time? These are essential retail metrics.
- Allocations – How many of each product and category of products are allocated to each of your stores? Do you have particular stores that sell more of one particular item than others? Are you allocating enough of that product?
- Sales – Not only should you track the products being sold, but you need to understand how many of each product is being sold per time period.
- Transfers – Do you get a lot of in-store transfers? Do you see more of one product being transferred more often? Maybe you need to change your allocations to reflect these transfers.
- On-hands – Knowing which products, and how many of each product, you have on hand is essential to selling them. If you have too many of a particular product on hand, maybe it’s time to discount it.
- In-transits – Knowing where all of your products are at all times is essential, that includes in-transits. You should know if a product is in transit from one store to another, from your warehouse to your store and from your vendor to your warehouse.
You’ll run a more profitable and efficient retail operation if you know all the possible product metrics available to you, and if you know them in real time.