Point of Sale (POS) software is more than a cash register. It charts inventory, performs accounting tasks, and follows employee activity. Finding a POS system with versatility and multiple-capabilities can involve days of research and time spent taking those systems for a test drive. While shopping for a POS system, make sure it has the functionality for today’s business needs and the future needs of your company.
A POS system should quickly and easily provide your business’s key performance indicators, filling the role of a sales manager. Tracking these indicators creates visibility of current activity that impacts your sales and productivity. This translates into your POS system providing frequent and relevant sales reporting. Your time is freed up to focus on the strategic planning for your business.
Below are 4 POS reports you should watch closely, some on a daily basis.
1. Detailed Sales Report.
Pulled daily, this report shows at-a-glance the items sold, total revenue, and gross margins—and lets you know exactly how well your business is performing. You can also find overall sales trends by tracking sales on a weekly, monthly, or quarterly basis. Once you understand the profitable areas of your business, then you can concentrate on the less profitable areas that need attention.
2. Sales by Product and/or Service.
A huge area of concern for all businesses is inventory. You need to be able to look at the sale of individual goods and services. A top selling report shows the most popular items and services in your portfolio. You can spend more time promoting and advertising what sells, giving you the ability to target your marketing efforts. A dead stock report finds the products that have failed to sell, which means that it’s time to clean the warehouse shelves.
3. Average Revenue Per Sale.
Per sale revenue is an easy way to place a dollar value on each customer transaction. It’s also a great metric to align your revenue goals with sales goals. This is one of the easiest ways to chart the increase in overall sales and can direct you to higher profits.
4. Customer Type.
An excellent report on new versus experienced customers has several implications. The first is the health of your business through positive customer experiences. Returning customers indicate positive interactions and attractive products and services. Gaining new customers improves revenue and highlights useful marketing tactics. If you’re not acquiring new customers, then your market might be stagnant and in need of changes.
Future Performance
While monitoring POS reports on sales activity, you’ll quickly assess the health and productivity of your sales force. Your data driven strategies are based on research and formal techniques—called evidence-based decision making.
The key to good business strategies begins with understanding the opportunities within your company. Then, ask yourself:
- What areas need more help than others help?
- Is there a new market or trend emerging?
- How do we increase sales?
There are many more questions than three, but they depend upon your individual business environment.
Analysis of your sales tells a compelling story. You should be confident when taking action to correct marketing and sales efforts in order to improve your numbers.