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Starting and running a business involves a 50/50 blend of instinct and fact-based decision-making — it’s both an art and a science. And whilst you can rely on your own intuition and the wisdom of others some of the time, it’s cold, hard data that leads to strategic, informed choices.
As intelligent point-of-sale (POS) systems replace traditional cash registers, founders and managers can track, analyse and explain how well and why their business is working rather than merely recording transactions. Things make more sense with everything centralised. But with so much data available, where do you begin?
Here are 6 pieces of sales data you can track with Square POS, helping you improve daily cash flow and plan tactically for long-term growth.
1. Sales reports by location
The view you have of the entire business can get disjointed when you have multiple locations. Reports by location join up the dots between your various stores without you having to visit each one individually.
How to use the data:
- See which of your locations perform best and when
- Plan your staffing based on the above
- Replenish stock at one location from another
- Check up on staff performance remotely
- Decide when and where you could open a new location
2. Sales reports by hour
Hourly reporting goes deep into the mechanics of what’s working in your business and what isn’t. It helps you see how even the smallest factors might be creating fluctuations that cumulate and impact you over time. These fluctuations might not be visible in week-to-week or even day-to-day reports.
How to use the data:
- Understand when your busiest periods are each day
- Rethink your staffing arrangements and opening hours based on demand
- React quickly to lulls, low stock and other immediate challenges
3. Sales reports by employee
Sales reports by employee reveal how your staffing arrangements are affecting sales down to the individual level. If your employees are using timecards, you can also check up on the hours they’re working.
How to use the data:
- See which of your employees are performing well or not so
- Make sure they’re working their set hours
- Strategically rota staff according to when they perform best
- Make long-term staffing decisions such as whether to grow your team
4. Sales reports by category
Categories are groups of items, for example: sandwiches, soups, cushions or home-visit services. They are less specific than items (which we’ll explain below). This data can be viewed in real-time to make responsive changes, or over a period to influence how you curate your ranges.
How to use the data:
- Specialise your category offering
- Focus your marketing accordingly
- Develop a new or more specific brand identity
- Restock or get more staff on preparation duty before whole categories run out
5. Sales reports by item
Items sit within categories. For example, where coffee is a category, a flat white would be an item. Itemised sales reports offer similar insights to category sales reports, with extra detail. Gauging the popularity of specific items and when they sell throughout the day.
How to use the data:
- Manage inventory with more efficiency
- Add or remove items from your menu
- Focus your marketing accordingly
- Understand how customers like to modify items
6. Sales from new vs. returning customers
A good sales strategy takes into account the impact of new and returning customers on your cash flow. It costs less to retain than to attract, but new customers can help you break into different markets.
How to use the data:
- Tailor your marketing to existing or new customers
- Provide tailored customer service
- Understand how people use and perceive your business
