One of the most important sales analytics and key metrics that you should pay attention to is types of purchases. To better understand your business and your customers, you have to take a close look at what they are buying from you the most, if you offer multiple products or services.
By analyzing the types of purchases your customers make from you, you can determine which products sell the most, how often they sell, and which branches or departments sell more or less of specific products.
Why are types of purchases important?
This metric is critical to understanding your business and correctly allocating your limited resources. Your best selling products will typically generate a higher return on investment for your ad campaigns than less popular products, and they’ll receive greater traction in sales programs. Knowing what your highest selling products are is important so that you can enhance your marketing and advertising strategies specifically for that product. That way, you can avoid wasting money advertising too much for less popular products that yield a smaller ROI.
Measuring the types of purchases your customers make will help you understand your customers better in addition to your own business. For example, you will be able to see which branches or departments sell more or less of specific products. If a product is selling great at every branch but one, then there may be an issue specific to that branch.
Most importantly, by leveraging the information about which product sells the most, you can create complementary or similar products, and rest assured that you will make more sales.
How to use the types of purchases metric: Focus your marketing strategy
Once you understand why types of purchases your customers are making from you, how should you go about actually using that information? Here are several ways:
Types of purchases is a critical sales metric to track, measure, analyze, and put to use. It gives you key insights into your business and how it operates, as well as into the behavior and needs of your customers.
If you want to start putting key metrics to work for your business, then contact the analytics experts at Winsby today!