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No Need to be a Financial Wiz: TackThis!’s Analytics Tab, Decoded
Online entrepreneurs are more and more engaged with the science of running a business, as it gives them a tangible view of their beloved store’s health. TackThis! generously provides an Analytics tab to its users to provide snapshots of their business’s standing on a day-to-day, monthly, and yearly basis.
The sales industry is a very dependent benefactor of sales analytics; many marketing and production plans are borne out of data gathered from sales histories. Many big players even measure the amount of time a shopper is in the store, as well as a careful observation of walking patterns throughout the shop, something industrial engineers study to set the shop layout in such a way that customers end up staying longer at certain sections of the store. Simple analytics entail tracking of some basic buyer trends and habits, as these data could dictate sales opportunities and the like.
While it is a welcome detail that this is even a part of the TackThis! service, it wouldn’t be of any use to anyone if it cannot be understood. So here are four simple tips on analyzing and dissecting your store’s Analytics tab to help you achieve an optimal financial standing for your enterprise. Here is what you should look out for:
1. Find out which days of the week accumulate the most number of transactions for a certain product.
- How: Click Order Analytics under the Analytics tab. Select a 7 day period with Filter Date From / Until. Set Period Format to DAY, Total Format to INDIVIDUAL, and Value Type to NO. OF TRANSACTIONS.
- Why: It will show the total number of transactions per day for a 7 day period for each product type. This will indicate which days of the week have the most number of transactions. This information can be used for budgeted marketing schemes such as Facebook Post Boosting, which cost USD5.00 per 24 hours of boosting. If your transaction history shows that you have the most transactions usually on a Friday for a certain product, you can target your ad spending to Fridays only for that product only, helping you save on marketing expenses that may not reach anyone.
2. Find out which days of the week generate the most total sales across all products.
- How: Click Order Analytics under the Analytics tab. Select a 7 day period with Filter Date From / Until. Set Period Format to DAY, Total Format to CUMULATIVE, and Value Type to SALES VOLUME.
- Why: It will show how much total revenue is generated per day of the week. Revenues generally mean net sales or sales total that have not been deducted from yet. This breakdown will give you an idea which days of the week receive the most amount of cash inflow. With this information, you can time certain promos such as 2-for-1 deals or coupon discounts to coincide with your most profitable days, creating an opportunity for you to generate more or larger transactions, and have more people talking about your store or brand as a result.
3. Find out which months of the year are your “lean” months.
- How: Click Order Analytics under the Analytics tab. Set Period Format to MONTH, Total Format to CUMULATIVE, and Value Type to SALES VOLUME. An identical effect is also reached when Value Type is set to NO. OF TRANSACTIONS.
- Why: Lean months are those in which the business records the lowest sales and transactions. Shop owners can handle it several different ways, depending on your products, clientele, and personal choice. It is similar to the way that gift-wrapping sales endure lean months from July to September and have bounty months from November to January (holidays) and May to June (Spring/Summer weddings).
Lean months basically are an opportunity for a proprietor to try different marketing methods, as these periods are the times of the year when customers typically do not need the products you offer, or will have a spending pattern that puts your product at a lower priority. An example of lean month activities are the months of February and March for school supplies stores, as customers do not typically need these products at this time of the year. Another example would be June for travel agencies, as many customers will prioritize their funds for school expenses for their children instead of travelling; in the case of travel agencies, their lean months are typically what we know as off-peak periods, and many of them have marketing campaigns of lower airline seat costs or package bookings during these periods of time, in an attempt to ramp up sales.
Proprietors can ramp up promotional activities during this period to attempt to make more sales; this is done by marketing campaigns and clearance sales. Many businesses hold sales to cut losses and even attempt to gain profits, and try to save their inventory at the same time, as unsold inventory may be perishable, have a shelf life, or may be prone to damage the longer they stay in storage and on display. The time can also be used to study what can be improved with current products, as well as what products can be potentially introduced alongside the current ones.
4. Find out which products are the best performers for the month.
- How: Click Order Analytics under the Analytics tab. Set Period Format to MONTH, Total Format to INDIVIDUAL, and Value Type to NO. OF TRANSACTIONS.
- Why: Your best product performers are your top selling products for the month in terms of number of units sold. This value will give you an idea of which products are more sellable than the others. You can then focus on higher production commitments to this product, and decrease production of products that sell less or none at all, so as not to accumulate inventory and risk losing it to various causes such as acts of God, accidents, theft, damage, and the like. This will also help lower warehousing/storage costs, as well as making production costs more streamlined; you will only produce more of what sells more.
These tips that we have listed are very similar to financial ratios used by financial managers of big corporations; use these as a guide for your business’ money matters so that you can put it in a position for it to grow as your desires dictate. Happy Tacking!