Data Doesn’t Play Favorites: How All Convenience Retailers Can Use Data Now

No matter what type of business someone is in, it’s safe to say that there is data that can help them improve their performance. Data is ubiquitous, and more and more c-stores are trying to use it to provide answers on how to be more efficient and generate more income. At last month’s NACS Show, many sessions covered the topic of data, making it clearer than ever that data is for all retailers – big, small, and everything in between. No matter how many stores a company has, data can help them make informed, better decisions and be more actionable. There are some simple tips and tricks to keep in mind that will help guide you to use data effectively.

Use the Data at Your Disposal

If you’re unsure of what the first step should be in your data journey, beginning from a place where immediate analysis can take place is a good place to start. Most c-stores already have data they can utilize to improve their profits. Even without complicated analysis, some of the data that you are already collecting can become actionable information. We’ll call this the “low-hanging fruit” of c-store data.

Here are some data points you can look at to start:

• POS reports offer a good baseline for data analysis. What items are you selling a lot of? Making sure you’re well-stocked and planogramming them effectively can maintain their high sales. Alternatively, you can use POS reports to identify which items aren’t great sellers, allowing you to buy less and not burn dollars on low-velocity items.
• Waste logs can help shape up your foodservice and maximize your returns. Does lettuce turn rotten before it’s used? You probably aren’t selling that many salads and can pull back.
• Traffic data can help you prepare. Be well-staffed for your busy times, but trim your staff during your slower periods to save labor costs.

Find the Data That Matters

Data without analysis will not help a business. Someone could read 100 reports in a day, but if no inferences are made through analysis, then reports are simply numbers on a screen. It’s up to the user to use that data as a tool – to find the story in data. Why are certain data points the way they are, and what action can be taken about them to make a business run better than before?

Having business intelligence (BI) reporting software with exception reporting and alerts shows you the things that need attention. Setting your parameters helps you bypass non-pertinent data and go straight to aspects that need improvement.

“BI reporting provides insight into the activity across all your stores so you can make confident, informed decisions to keep your business at the top of its game, and it all happens using the data you are already collecting,” Chris Kiernan, Director of Operations – Retail /Wholesale at ADD Systems. “Your data is a key resource waiting to be unlocked.”

In the c-store industry, these common exceptions and alerts can help cut through the noise:

• Be informed about low sales and fewer transactions. Whether it’s in-store patrons, customers picking up, or delivery drivers grabbing the order they need, someone needs to come through the door to make a sale. Sales reports can let you know when it’s time to start a promotion or adjust staffing for dayparts.
• If your foodservice sales are steady but the product keeps on spoiling before being used, you might be prepping too much. Waste reports allow you to match your foodservice sales more evenly.
• Are sales falling short of expectations, or are you running out of products in high demand? If so, you may not be optimizing your purchases and shelf space. Make sure you’re keeping the store well-stocked enough to hit the margin you need to achieve.
• Weekday sales can vary dramatically compared to weekend sales. Run trend reports by day to better understand how to meet your daily demands.

Use Benchmarking to See Where You Stand

While it’s important to improve your own historical metrics, sometimes, to truly excel, you need to see how you’re doing against the rest of the industry. Vendor data, industry reports (like the NACS State of the Industry Report), and location comparisons help you gauge where you stand and find areas to improve.

Here are some benchmarking examples:

• If iced tea sales are up nationally or regionally and you’re not keeping up with averages, make sure you’re offering a solid iced tea selection for customers.
• If there are products in a new subcategory showing an upward trajectory, jump on the bandwagon and expand your offering to maximize earnings.
• Sandwiches selling better at one store over another store? Consistency is key with foodservice. Make sure your staff is preparing them consistently across locations, and review your advertising across your sites.

Don’t Be Afraid to Combine Data Points

Sometimes, the answers you need aren’t always plainly seen. Some questions may be answered by just looking at a single source of data, but others need to be analyzed from multiple viewpoints to get the whole picture. Having back-office software that pairs data together can help you optimize multiple aspects of your c-store business.

Here are instances where data can be integrated:

• Compare your fuel sales and inside sales. Are you selling a lot of gas but not getting people in the store to buy other products? Think of promotions/specials to get them through the door.
• Use basket analysis to see what items pair together. Finding common pairings can help you create promotions that increase sales velocity and boost profits.
• Tobacco orders aren’t keeping up with the inventory needed throughout the day. Correct your vendor purchases and make sure you’re stocked up enough to not lose out on profit.
• A consumer report says hot chocolate sales jump when it’s below 40 degrees, but you’re not making it a priority. Make sure hot chocolate has an SKU and you’re promoting it the way it should during chilly days.

No matter the retailer’s size, opportunities are waiting to be discovered. Knowing how to use data takes the guesswork out of being more efficient and profitable. And there’s no better time to improve your operation than the present.

To learn more about ADD Systems software, click here or call 1-800-922-0972.