It's often said that "information is power", and this can apply just as much to a political party campaigning as it can to a public institute or even a company.
In the case of companies, through the data collected from sales or market research, it is possible not only to understand and profile their typical customers, but also to offer a more personalised shopping experience and to understand in advance the trends that will emerge in the short to medium term.
As you can see, the information obtained from analysing the market can be gold for creating more assertive and profitable data-based strategies, but what metrics should businesses pay attention to?
That's what we're going to help you find out right now.
Which metrics should you monitor regularly?
Quantifying the data that the business will work with to help it define business strategies is done through metrics.
Depending on the sales channel through which the business operates, physical or online, these are the metrics (or KPIs) for retail that you should be particularly attentive to:
- Revenue and Net Profit: this metric gives you the total turnover of the business and the net profit after deducting all expenses;
- Monthly Recurring Revenue (MRR): reflects predictable monthly revenue;
- Customer Acquisition Cost (CAC): lets you know how much you have to invest to win over a customer;
- Cash Flow: tracks the inflow and outflow of money on a daily, weekly, monthly or even annual basis;
- Conversion Rate: shows you the results of investing in marketing actions aimed at winning customers;
- Net Promoter Score (NPS): measures the degree of customer satisfaction and the likelihood that they will recommend your products or services;
- Customer Retention Rate: Through this metric, you can see how capable your business is of retaining customers;
- Return on Investment (ROI): gives you concrete data on the gains or losses of a given investment in the business;
- Sales Cycle: gives you an idea of the amount of time it takes your business to turn a lead into a customer, and helps you identify obstacles in the process. sales funnel.
How to identify trends, sales peaks and customer behaviour
As we've mentioned, the correct interpretation of sales data, for example, can lead to more assertive and profitable business strategies, but how do you identify trends, sales peaks and customer behaviour?
There are two ways of maximising shop performance analysis that should go hand in hand.
The first involves looking inwards, i.e. using the metrics (especially sales metrics) we mentioned to monitor the evolution of the business and the behaviour of your customers.
This includes understanding which products/services are most in demand, what the most used means of paymentFor example, what is the average amount spent on each purchase, what is the turnover and number of sales, where do customers come from or what is the means of access to the business website (online channel, essential to understand if your website is optimised for mobile devices, for example), etc.
Through this analysis, you can more easily identify sales peaks (something that will help you schedule campaigns and promotions for less busy days), the behaviour of your customers (particularly in terms of payment methods and the average ticket spent by each of them) and infer purchasing trends, which can help you renew and personalise your offer.
If you don't want to waste time and get an analysis carried out by experienced professionals or a more macro study of not only your business area, but also consumer behaviour on a more general level (so that it's easier to structure a response that will help you win over and retain customers), we recommend using a knowledge solution such as REDUNIQ Insights, a tool that, among other things, will allow you to:
- Identify the dynamics of consumption in the sector using data from your area of activity;
- Understand customer preferences in different regions of the country;
- Learn about market changes and trends with monthly reports;
- Strategic planning based on detailed, up-to-date data to guide the growth of your business.
Turning data into concrete actions: promotions, timetables, inventory
With the REDUNIQ Insights reports to help you compile and analyse data for business optimisation, it's time to turn that information into concrete actions aimed at promoting effective commercial management and continuous improvement for sustainable company growth.
For example, knowing that the majority of Portuguese consumers pay for their purchases with contactless devices and that these already account for the largest share of business turnover in Portugal, you can invest in installing more innovative physical and/or online payment methods in line with these new transactional habits.
Similarly, by having information on the times of day, week, month or even year when consumers make the most purchases, you can adjust your promotions and discounts to take place at quieter times (thus promoting faster stock disposal) and also understand which products should or should not be discontinued due to lack of interest.
In online shops, where everything happens at the speed of light, these insights are even more important, because they allow you, among other things:
- Scheduling campaigns and defining a target audience for them with greater mastery and added value;
- Working on SEO (Search Engine Optimisation) to reach a specific audience with campaigns specifically targeted to their needs;
- Setting times for "happy hours" where flash promotions can attract people who are not yet familiar with your products or services.
It's no coincidence that it's said that "data is the new black gold" (an allusion to the wealth created by oil at the beginning of the 20th century). When handled well, they can provide your business with competitive added value, resulting in more sales, more profit and more satisfied customers.
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