Data is one of the most powerful things you can have in your cannabis business. Getting access to the right sales, inventory, and customer information enables you to make more informed decisions, so you can carry the right products and market them effectively.
In this post, we’ll take a quick look at the top metrics you should be tracking in your cannabis company. Go through the points below and see how you can start measuring them.
Looking at revenue numbers alone won’t give you much insight. You need to look at sales from different angles to gain a deeper understanding of product, staff, and store performance. Consider tracking the following:
- Sales per category – This metric will let you determine which product types are most and least popular.
- Sales per vendor – Tracking this will give you insights into which suppliers you should be working with.
- Hourly sales – Knowing when your sales are happening will allow you to figure out your peak hours so you can schedule your staff accordingly.
- Sales per team member – Having a handle on the sales activities of your staff can help you develop training and incentive programs to improve their performance.
These inventory metrics can help you stay on top of stock control.
- Stock on hand – By closely tracking this metric, you can make informed decisions on which items to put on sale, which items to order, and more.
- Stock turn – Sometimes referred to as inventory turnover, stock turn tells you how many times an item has sold out in a given time period. This is a great metric for figuring out how fast your cannabis products are selling.
- GMROI – Short for Gross Margin Return On Investment, GMROI tells you how much money you’ve earned for every dollar you invested in your merchandise. You can use this metric for gauging the profitability of your stock and for deciding whether or not it’s worth it to keep selling a particular product.
Customer-centric metrics will give you the direction you need in order to market and sell to the right people. Here are a couple of the metrics to keep an eye on:
- Customer acquisition costs – CAC is critical to maintaining business profitability. By knowing how much it costs to acquire new customers, you’ll be able to control your marketing and advertising expenses and ensure you aren’t spending more than you should.
- Revenue per customer – This metric will enable you to segment your customers and figure out who your top shoppers are. This, in turn, can influence your sales and marketing activities. For instance, if you discover that most of your top customers are millennials, then you can craft more relevant marketing strategies for them.
Set up the right analytics systems
Want to learn more about cannabis business analytics? Our whitepaper, Building Your Cannabis Business: Choosing the Right Software has you covered. In it you’ll learn about the systems you need to in your business to track and measure the right data. You’ll also discover the steps you should take to keep your software solutions tightly integrated.