What are the most effective ways to analyze individual SKU performance?

I will use the Pareto Law to separate the Fast Moving Items (FMI) and the Slow Moving Items (SMI). The 20% of items in the category that contribute to 80% of sales is the FMI. The 80% of the rest is the SMI. By using a good POS System the process can be executed by the system.

Key metrics for analyzing a SKU's performance are stock to sales ratios, also for categories like Ready to Wear and footwear it is important to understand stock to sales by size as being short or underbought/under-replenished in sizes will greatly affect performance. In retail we don't analyze conversion rate at the SKU level and I don't recommend it unless you are running a very small number of SKUs business. Additionally it is important to look at markdown rate or discount rate (these metrics are calculated differently) to understand impact on sales. There are several other key metrics as well if we go above the SKU level such as inventory turn, Weeks Coverage, Weeks of Forward Coverage etc. which help more with allocation planning.

- Absolute sales figures, identify if its a top contributor, medium average, or at the bottom, this gives you a general idea on the volume - Sell Through rate in comparison with date progessing starting from launch date; and vs last year; vs category average; this is to see the rate of the SKU moves, the faster the more desirable the product, also to see if the SKU needs replenishments or it's over buy need more promotions - Draw the product life cycle, indentify where it sits( upward/ plateau, or downtrending, this is to see the future potentials and helps your next season buying strategy - 1st hand research, get face to face with sales person or consumers, get infos on their feedbacks, this is to see if there's any elements overlooked

One of the most basic and obvious ways to analyze SKU performance is to look at the sales volume and revenue generated by each SKU. This will tell you how popular and profitable each product is, and how much it contributes to your overall sales and revenue goals

I agree, sales analysis in LFL situations is very important in order to judge the performance of a particular product. Moreover cutting the tail is equally important in order to sustain to a profitable business.

The customer's feedback is a method to know which items/SKUs they are looking for that they cannot find in our store. To get customers' feedback we can create regular customer satisfaction surveys. When an item is regularly asked by customers then it is the first sign that we are not fulfilling customer needs.

Customer feedback is a valuable resource for businesses. It provides insights into customer satisfaction, pain points, and areas for improvement. Analyzing this feedback helps companies make informed decisions and enhance their products or services. Here are some key points about customer feedback analysis: What is Customer Feedback Analysis? Customer feedback analysis is the process of evaluating and interpreting feedback left by customers for a product or service. They’re few steps to Analysis the customers feedback Collate,Analyze,Identify Themes,Take Action: Implement changes based on the feedback.

Le retour client est utile, il permet en effet de prendre connaissance des attentes non satisfaites sur un produit. Au delà de simple commentaires remontés par les clients, il peut être utile aussi de mettre en place un questionnaire plus structurant avec des notations sur des points précis

Pero una de las principales SKU, es la falta de stock o de surtido adaptado a nuestros clientes. También con herramientas como Power Bi, que nos permite analizar nuestra evolución en compras media, en frecuencia de compras, pero no deja de hacer un comparativo interno cuando lo que necesitamos es la evolución general, que hoy nos la proporciona la IA, en preguntas bien concretas y detalladas, aumentando nuestra productividad optimizando los niveles y estándares de servicios y atención al cliente. Sobre todo tener un equipo de tienda implicado y motivado por y para el proyecto

En mi opinión, la recopilación y revisión de comentarios y calificaciones de los clientes son elementos cruciales para entender el rendimiento del SKU en el comercio electrónico y el retail. Estas voces proporcionan una perspectiva invaluable sobre la satisfacción del cliente, revelando tanto las fortalezas como las áreas de mejora de cada producto. Además de medir métricas como la satisfacción del cliente y el net promoter score, nos ofrecen una ventana hacia las expectativas y preferencias del mercado. Escuchar activamente a los clientes y responder proactivamente a sus comentarios es fundamental para construir relaciones sólidas y fomentar la lealtad a la marca en un entorno comercial cada vez más competitivo.

Conversion rate is how to change the visitors become shoppers. It is the job of sales people to do their job. The visitors are there and if they (sales people) cannot make the visitors buy then it is waste of time. On the other side, basket size will show us how successfull our sales team make their job as well how successful our merchandising team can provide assortment and availability to fulfill customers' needs and wants.

Il est important de mettre en perspective le taux de conversion avec le taux de fréquentation. Une fréquentation en très forte hausse par exemple dans des circuits de distribution où les ventes demandent du conseil peut avoir un impact défavorable sur le taux de conversion. Le visual merchandising peut également avoir une influence sur le taux de conversion, un produit bien mis en valeur a plus de chance d'être vendu

Conversion rate is a crucial metric that indicates the percentage of users who complete a desired action. In the context of SKUs, it represents the proportion of users who purchase a specific product. The formula for calculating conversion rate is: Conversion Rate = (Number of Conversions / Total Number of Visits) * 100 Basket analysis helps retailers understand which products are frequently purchased together. It reveals patterns of co-occurrence among items. Here’s how it works: Collect Data: Gather transaction data, including items purchased, timestamps, and other relevant information. Clean and Preprocess Data: Remove irrelevant details and handle missing values. Analyze Co-Occurrence: Identify which products tend to be bought together.

Les attributs de produits doivent refléter les critères d'achat du produit, cela demande de mise à plat détaillée de ces attributs et partagée par les personnes en charge du référencement pour s'assurer d'avoir les datas complètes et fiables et pouvoir suivre les performances sur la base de ces critères.

In grocery stores,individual monitoring of skus and category sales monitoring. Also traffic monitoring on a daily basis.also department sales monitoring and customer count monitoring.

le benchmarking est incontournable pour conduire une stratégie adaptée, toutefois il est souvent oublié ou mal executé. Il demande organisation et planification et repose sur un relevé détaillé des produits et de l'offre. La mise en place d'un benchmarcking permet d'analyser les stratégies de Prix des concurrents et des autres acteurs du marchés mais également les structures catégorielles, les positions prises sur les produits selon les différents attributs. Il est utile de mener la veille régulièrement selon un calendrier bien établi pour pouvoir évlauer les évolutions dans le temps

First, we should make a customer satisfaction survey to know the feedback from our customers whether they are satisfied or not with us. If not, what are their benchmarking store? Competitive benchmarking is one of the methods to analyze if our range of products is attractive enough to make sales and profits. By doing benchmarking with our competitor we will know why customers choose to choose other stores besides us.

Analyzing individual SKU performance is crucial for effective inventory management and business growth. Competitive Benchmarking. Performance Benchmarking: Compare revenue, brand awareness, and social media engagement. Strategic Benchmarking: Evaluate business models and execution styles. Process Benchmarking: Analyze operational processes. Understand where you stand, why customers choose competitors, and attract them to your offering. Improve strategies, cut unprofitable SKUs, and optimize customer service. Effective SKU analysis and competitive benchmarking go hand in hand. By combining these approaches, you can make informed decisions, optimize your inventory, and stay ahead in the market.

PowerBi is a fantastic tool to visualize and manipulate data in real time. The ability to take a visualization and drill into the data from a chart/table/etc allows for a live conversation around how well or unwell that sku has performed. "a picture is worth a thousand words"

One of the very most important aspects of analyzing SKU performance is the relationship between sales and stock. It is astonishing how few retail professionals understand how to do this. Sales can only be achieved if there is inventory. Inversely, sales are often constrained by being short in a SKU or SKUs. A simple but effective way to compare SKUs is to look by SKU at the percent share of total stock, and the percent share of total sales. Where sales share exceeds stock share, there is likely an opportunity to increase inventory in that SKU and reduce in the opposite situation. Creating a culture that always looks at sales and stock together will take a lot of "feelings" out of the analysis and bring a very significant impact to sales.

1.Sell thru and more importantly rate of sell thru 2.Sell thru mapping in an ideal environment of no stock-outs and if stock outs happens putting a number to lost sales basis sell thru rate 3.Margin analysis of sales indicating full price or promo dependency of sales,low or high margin garners against the averages etc..

Could not agree more, you need inventory to make sales, and if you are manufacturing to make inventory, it’s critical to build volume into the plans, rather than build vs available resources. It’s also critical to understand that the level of inventory to drive the sales is a fine balance, too little and you miss sales, too much and you carry cost.

Work with Digital Marketing to understand different triggers for conversion. If you are out stock how many back in stock notifications are there, are there delivery notifications (back in 2 weeks) and pre orders to capture lost seasonal sales for delays or over performance. High performing lines should be analysed by new customers and existing so marketing can buy ad space and use the right lines for the right customers. Follow me for more…😀

The success of a SKU is dependent on what the role and intent of that product is for your business. If it is a traffic driver, volume will be important at budgeted gross profit percentage. If it is an impulse or differentiating SKU then profit margin is important at budgeted sales volume. Some SKU’s are service lines that will never enjoy high sales volumes or margins, but if you remove them from your store you run the risk of losing those customers that purchase that product and their associated shopping. Once again retailers, not suppliers need to determine what the role and intent of their SKU’s are and range and support accordingly.