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Business intelligence helps retailers make smart decisions and supports sustainable growth. Here are five ways data can be applied to add value.
Staying upbeat in the current climate is a challenge, so retailers would be forgiven for allowing business intelligence to slip down the list of priorities.
It’s costly and onerous, right? And requires enormous IT back-up? Well, no, not necessarily.
“Leveraging data intelligence is an opportunity accessible to everyone – not just retail behemoths”
Unlocking the power of data could be just what retailers need to remain sustainable and to support growth. And leveraging data intelligence is an opportunity accessible to everyone – not just retail behemoths.
Accounting software can constantly collect data that businesses can then use to analyse and forecast. The trick is having the confidence to act on that data.
1. Business health
Retailers need to have transparency over their financials and must keep a close eye on profits and losses. Data makes managing business health a whole lot easier.
By either creating a dashboard in-house, or leveraging a data dashboard from a provider, retailers can monitor key performance indicators, such as monthly sales trends, expenditure and profit margins.
Having access to this kind of data enables retailers to make better decisions, improve forecasting and see whether growth is taking off or, in fact, stalling.
2. Cash flow visibility
Having visibility of day-to-day expenses is crucial. Business intelligence allows retailers to have an accurate overview of what’s due in real time.
“Being able to cater appropriately for consumers results in increased customer knowledge, greater loyalty and a more sustainable business”
Using a financial hygiene dashboard means retailers have a good overview of latest cash transactions and are best placed to size up new opportunities.
Being able to cater appropriately for consumers results in increased customer knowledge, greater loyalty and a more sustainable business.
3. Managing inventory
The most successful retailers know their customers inside out. And what better way to get to know customers than by using data to understand exactly when, and how, they’re buying products?
Business intelligence enables retailers to gauge which products sell best and who the top customers are. This data can then be utilised to help retailers position their offer accordingly.
Being able to cater appropriately for consumers results in increased customer knowledge, greater loyalty and a more sustainable business.
Software such as Sage Intelligence, available as part of the Sage Business Cloud Accounting solution, allows retailers to easily customise sales reports and shows data such as the value of products in stock and different sales transactions for each customer.
4. Keeping track of debts
Good cash flow is often linked to good credit control. Knowing what’s owed by whom and when allows businesses to plan safely and accurately.
Business intelligence gives you sight of when:
- Invoices are due to be paid
- Credit notes are due to be refunded
- Recurring income or expenses are due.
5. Supply chain management
Keeping track of sales and customer demands is one thing, but having a comprehensive overview of supply chain is vital to business success.
Having access to intelligence such as credit terms and upcoming payments schedules gives retailers the ability to build and maintain strong relationships with suppliers and creditors.
”Having a comprehensive overview of supply chain is vital to business success”
It also supports on negotiating better terms for the future – as well as calling in favourable rates if necessary.
Data collection and analysis has moved on
In the past, huge investment was needed for retailers to gather and analyse data, but today it’s never been easier for retailers to take advantage of it.
Good accounting software should include the business intelligence for retailers to gain a healthy view of their business.
The best accounting software should also provide intelligence that offers real, action-oriented value.
Simply put, business intelligence is a no-brainer for retailers who want to make better decisions and stay sustainable.
Sage’s Business Cloud Accounting solution helps retailers make data work for them, with Sage Intelligence included.
To find out more about the solution, click here.
