The most successful companies are keeping detailed records of their sales. Not doing so is not unlike driving with your eyes covered. Keeping track of your sales allows you to see the algorithm of your success. The kinds of data you want to track are:
- All sales.
- Cost of acquiring a customer.
- How much does it get to attract a customer in terms of sales and marketing? How does this amount compare to the estimated amount that customer will spend on your business over the next 2-5 years? If a customer’s lifetime value is 3x or more than the cost of acquisition, then it’s profitable.
- Cost of goods sold.
- Gross margins.
- Best products sold.
- Best customers.
- Total sales.
- Average sale per customer.
No matter if you’re a small startup or an established company, it’s crucial that you track all of this data on a regular basis so you can see where you’re business has been, where it is currently, and where it’s headed in the future.
Raad Mobrem, CEO of Lettuce, producer of e-commerce and wholesale inventory apps, discusses the importance of tracking sales, customer-acquisition costs, customer activity and other data when managing inventory.