Four Ways Retail Reporting Can Improve Your Business

If your point of sale has retail reporting capabilities, you already have access to insights that could accelerate the success of your store—if you know how to make the most of them. It’s important to know how you can benefit when you gather insights from your inventory. Ultimately, doing so can lead to not only more revenue, but happier customers too.
Here are three ways taking a deeper look at your retail reports can benefit your business:

You’ll Take the Guesswork Out of Restocking Merchandise

This might be the most obvious benefit, but it’s also one of the most important ones. Stocking your shelves by playing a guessing game about the items shoppers are most likely to purchase won’t benefit anyone, and it’ll likely leave you with unsold merchandise. On the other hand, if you keep a close watch on inventory reports, you can more accurately tell when a popular product is about to run out, or when another is falling flat. That also means fewer occasions of having to order an item from another store when it’s out of stock in yours, which saves shipping costs and leads to happier shoppers.

You’ll Be Able to Make Better Customer Recommendations

Many times, inventory reports can help you identify purchasing trends, information you can then use to better serve customers. For example, if you notice customers are purchasing a certain sweater and pair of pants together, your sales associates could suggest that those buying one of the pieces also purchase the other to complete their outfit. Or, you could take those insights one step further and use them to guide in-store displays, looking to your customers’ buying decisions when decorating windows and strategically placing items throughout the store.

You’ll Get a Strong Grasp on the Impact of Sales and Promotions

Retail reports have the potential to take much of the guesswork out of sales by helping you figure out which deals make items fly off the shelf and which have little impact. Maybe offering a buy-one-get-one-free sale attracts more customers than marking those same items at 50 percent off (even though the savings are the same). Or maybe, offering even a small discount on a popular item is enough to bring shoppers to your store instead of the competition’s. If you’re paying careful attention to inventory reports and connecting that information to your promotion strategy, you’ll be on the fast track to giving customers exactly what it takes to buy.

You’ll Better Understand Seasonal (or Regional) Trends

For some items, figuring out when they’re most likely to sell is obvious. For others, that isn’t always the case. Retail reports can tell you a lot about the products shoppers want to take home in the summer versus the fall or spring, so your inventory is better prepared the following year. Similarly, if you have stores in multiple locations, it could pay to take a deeper look at variations in popular items. Products and styles that do well in Chicago may sit on the shelves in New York, so keeping the same merchandise in stock in the same quantities at all of your stores may not be the answer. Instead, spend some time gaining a deeper understanding of the buying trends that exist in each location and tailor your stock accordingly.
What’s the most valuable thing you learned from looking at your store’s inventory reports? Leave us a comment or send us a tweet @Cayan and let us know.
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