Measuring Brand Performance: A Comprehensive Guide to Cannabis Retail Success
In the competitive world of retail, staying ahead requires more than intuition; it demands informed decisions backed by data. By measuring the performance of every brand on your shelves, you gain actionable insights driven by facts, enabling you to optimize your operations and achieve better results.
Strategic Principles
To run an efficient retail operation, it's crucial to emphasize the measurement and reporting of sales production metrics. These metrics are vital for sales team members and management to understand performance across various variables.
Productivity and Production Metrics
Key metrics to monitor include:
Gross Merchandise Value (GMV)
Spread
New Store Activations
Total Collected Spread
Sales by Brand
Accounts Receivable/Collections Efficiency
Month-over-Month (MOM) Growth
Average Order Value
Brand Scorecard
Creating a brand scorecard involves several steps:
Identify Key Metrics: Pinpoint the metrics that are crucial to your business's success.
Benchmarking: Establish benchmarks for each metric, ranging from worst to best, and assign points accordingly. For example:
GMV in Month
<$15k = 0 points
$15k-$50k = 4 points
$50k-$150k = 7 points
$150k+ = 10 points
Categorize Brands: Rank brands by their raw scores and categorize them based on their performance:
Top Performers: Brands with the highest raw scores, indicating strong performance.
Promising Candidates: Brands with potential for growth, showing competitive scores but with room for improvement.
Stagnant or Average Brands: Brands with middling performance, needing strategic adjustments.
Underperformers: Brands with the lowest scores, indicating significant areas for improvement.
Develop Action Plans: Tailor action plans for each category to capitalize on strengths, address weaknesses, and optimize overall performance. This may include marketing initiatives, product promotions, inventory adjustments, or vendor negotiations.
Monitor and Adjust: Implement the action plans and closely monitor their impact on sales, customer satisfaction, and overall business performance. Continuously assess brand performance metrics and adjust strategies as needed to maintain a competitive edge.
Regular Reviews: Schedule regular reviews of brand performance to ensure ongoing optimization and alignment with business objectives. Use insights from these reviews to refine strategies, identify emerging trends, and make informed decisions about product selection and promotion.
Metrics to Consider
When assessing brand performance, consider the following metrics:
Revenue
GMV in the Month
Spread in the Month
Inventory Availability
Quality
Customer Returns
Stock Returns or Quantities
Brand Engagement
Vendor Day Support
Budtender Education
Swag Support
Social Media and Marketing Support
Sampling Activity
FlyWheel Features
FlyWheel offers powerful tools to streamline and enhance your brand analysis process:
Sell-Through Analysis Dashboard: Integrates with existing systems, providing visualizations and customizable reports to track product lifecycles and identify sales trends.
Sales Performance Analysis: Offers tailored reports with actionable insights to fuel growth strategies and optimize performance.
Daily Revenue Insights Dashboard: Aggregates transaction data into detailed daily revenue reports, empowering retailers with accessible analytics for data-driven decision-making.
ABC Analysis: Streamlines inventory analysis, enabling data-driven decisions to enhance profitability and customer satisfaction by optimizing inventory turnover and maximizing revenue potential.
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