Retail organizations of nowadays economy are experiencing tough competition in the battle for a client. Now, in 2012, there is a huge importance of tracking performance against objectives. Retail companies can set up it by building Intelligence into the system. Business analytics help a company eliminate inefficiency and waste in whole the chain.
5 Analytic reports that every Successful Retailer must have.
1. Financial dashboard
This financial workbench dashboard helps retailers to integrate operational plans for stores, merchandise and promotions with three key financial statements: P&L, balance sheet and cash flow. Having this tool you will gain a complete view of your business from both financial and strategic points.
Leveraging information from the tool, the management will be able to compare the current year plan to the actual outcome. And, by using metrics, the business staff can track results for a given time period. The dashboard clearly shows the what-if scenarios and actuals, and it provides retailers with insight into the performance the business. Interface of the dashboard is represented by a set of high-level KPIs that are clear to the business management. Non-IT staff can monitor upward or downward financial trends, and drill down into these results to understand what and why it is happening and have steps to improve performance.
2. Money investment report
Retail companies are interested in identifying their return on investments for a store unit or some development initiatives. The capital investment report gives company an answer whether they have a positive impact on performance or not. Management can analyze the ROI performance of one unit store and compare it to the whole chain. If it is positive then it is possible to set up this practice for the chain and improve the business.
3. Merchandise planning and analytic report
Retail organizations are looking for cut costs and improve of operation efficiency. Thus, a critical issue is merchandise and assortment planning. It is always a question of balance. Planning may be needed months in advance to procure stock. However at the same time, supplier capacity and customer preferences are changing permanently. Retailers need the agility to react instantly to these market trends. There is also a need to analyze performance down to item level to find the areas that need improvement.
The merchandise planning and business analytic report offers an in-depth view of performance by item. Using the product heat map, business staff can analyze the effectiveness of the financial merchandise strategy by definite quarter or time frame.
By comparing forecasted plans to the actual ones and by analyzing year-to-date sales by product line or department, retailers can find whether specific products are meeting financial goals and objectives.
4. Market Basket report
By conducting market basket management can make more informed and smarter decisions. This kind of business analytics define complex relationships between products and customers in order to stores, merchandise and promotions. So that business staff finds answers to critical issues:
- What is driving the typical shopping trip, buying decisions and product affinity?
- How do different customer segments vary in shopping motivations?
- How can we increase frequency and basket size?
5. Customer profile report
To understand customer`s needs and preferences means to have the best insight and opportunity for growing. Business analytics tools help retailers to enable a technology that shows the whole picture with trends, drill-down details so that the management can improve the overall business process. Insight into customer behavior and trends ultimately improves sales and increases baskets, and by extension increases loyalty and profits.
Post Scriptum if you find this article interesting, you can find more useful information on these topics