Think of your coffee shop as a treasure island. The data you collect from your sales is the treasure map that will get you to said treasure. Understanding your data lets you find out insights such as what drinks people ordered the most, when are your peak hours and much more.
Why is data so important?
Each sale is one data point. This allows you to connect the dots and put together a full picture of what is going on in your coffee shop. POS systems will allow you to record every single sale, who made the purchase, when they bought it and which items they purchased.
What type of data can you gather?
Most popular drinks: Does your customer order a latte with cinnamon or an Americano with milk?
Peak hours: What hours do you have the highest number of customers? Understanding when you receive the most foot traffic will assist your scheduling.
Average bill: What does an average customer spend? This can help recognize opportunities in increasing your average order value.
Repeat customers: Who are your heavy hitters? Offer them special offers and discounts to reward their loyalty.
How would you employ data to improve profitability?
Optimize the Menu: Unless a drink isn’t selling well, remove the item on the menu or replace it with a new drink.
Personalized offers: Make personalized recommendations to your customers for offerings based on their purchase history.
Inventory control: Order only the ingredients that are needed to avoid waste and save dollars.
Improving staff efficiency: Reviewing the data regarding employee performance to obtain needed input and providing additional training if required.
Real Example
One coffee shop owner found out that their customers ordered lattes more in the morning and cappuccinos in the afternoons. So, they rearranged the menu items and provided some special offers on these drinks at the peak hours. Their sales went up 15%.
Getting started with analytics
Find an appropriate POS. Most of the modern-day POS systems, such as Alto’s POS & Inventory, come with built-in analytics. Alto’s already has dashboards to visualize your data in the best way to show the meaning of the data underneath, making it easy to understand and analyze. And so, when needed, do not be afraid to ask questions. If you’re not sure how to interpret your data, just ask the business analyst or some technology expert.
Conclusion
Data analysis may be such a strong tool that could even let you make informed decisions about your coffee shop. Using data to understand who your customers are and how to optimize your operations, you will increase your profits and develop a more successful business.
