Twitter icon
Facebook icon
LinkedIn icon
Pinterest icon

3 Ways To Use Retail Management Software For Generating KPI Reports

Illustrations of the keys to good business performance

Key performance indicators (KPIs) serve as a roadmap to business growth, but the data to create the roadmap comes from a retail management software solution. 

Consider this: Do you know how your sales compare at 10 a.m. and 1 p.m. on the same day? Understanding that would allow you to schedule staffing more appropriately. Are you able to determine your average sales margin from a particular promotion? Knowing that information would help you to determine the success of the promotion and if any changes should be made.  These are just a couple of examples highlighting the importance of tracking KPIs. 

Let’s take a look at three ways retail management software helps mid-market retailers track, manage and monitor data necessary for KPI reporting. 

  1. Track: KPIs are more than numbers. Rather, they tell a story in ratios and percentages about what’s going on in a particular market or within a specific department. 

    The sales department, for example, might decide that its performance is best measured by tracking the average number of products sold, sales made by company employees and lost accounts. Meanwhile, the accounts receivable department could decide that its KPIs should focus on the number of accounts past due and invoice processing costs. 

    It might feel like you’re juggling too many balls in the air when it comes to tracking various data for several KPIs. That’s where a retail management software solution is able to help. In real time, it tracks the various data needed to generate KPI reports. The real-time reporting empowers retailers to confidently make changes at a moment’s notice. 

    Let’s say that after setting up your software to track sales throughout the day, you decide to review a sales KPIs report. You notice that promotions launched at 10 a.m. result in more sales than promotions launched at 1 p.m. That KPI reporting indicates the need to change the time when a sales promotion is launched. 

    So again, in order for a KPI report to provide a snapshot of how a department or your business as a whole is doing, it needs real-time data. That’s possible with the right technology. 

  2. Manage: Often, KPIs are displayed on a dashboard for at-a-glance access. But again, just like KPIs, dashboards are not one-size-fits-all. The dashboard can be tailored to provide the information that each individual needs to view. 

    This is known as role-based reporting. Although the software has the power to gather as much real-time data as necessary, it must be able to sort out the relevant, real-time information that empowers employees to make smart decisions. 

    So when a CFO wants a snapshot of the company’s finances, an effective software solution would be able to sort out important financial data in real time and display it on the dashboard. In a changing retail landscape, it’s not feasible to wait a few days for a report. It’s critical that data is effectively managed for real-time KPI reports. 

  3. Monitor: Love it? Pin it! Tweet it! Share it! Pinterest and other social sharing sites are expected to play a bigger role in influencing what retailers sell. It’s called “social curation,” the latest buzzword gaining ground in the retail industry. Analytics gathered by a retail management software solution are going to be vital in determining how well a retailer adjusts to this trend. 

    Social curation is when consumers curate a collection of their favorite products and display it online. Then retailers leverage shoppers’ social data and social curation to determine the products to sell. Pinterest boards, for example, offer insight into products that are trending and potential consumer demand. 

    Look for software that is able to monitor social curation data. Including social analytics helps retailers gauge product performance in as close to real-time as possible. That enables retailers to make the best inventory decisions based on projected demand. 

Screenshot showing example KPI data

Numbers tell the story, but when those numbers are for KPI reporting, it takes powerful technology to track, manage and monitor the data for the full story. These three tips show how retail management software improves the way retailers handle their data, which enables them to make decisions that enable business growth. 

See firsthand how our solutions deliver retail agility and performance. Schedule a no-obligation free demo of ArcherPoint’s retail management solution.

Author: Tina Terrezza, Business Development Manager at ArcherPoint