Doing math is the Achilles tendon of many people. Not everyone is comfortable with numbers – let alone financial terms.
Despite the difficulty, it is vital to make an effort to understand some concepts. After all, that's the only way you can have a more accurate and professional view of your business.
From this, you better understand your company's movements, what works best and what doesn't, and the consequences of your actions, in addition to making more accurate decisions, based on data analysis.
Relax, you don't have to be a math whiz to pull this off. To get started, just brush up on your knowledge of specific statistics.
With that in mind, we created this essential guide on the data collected in Kyte and how to interpret it to use it in your favor and evolve your business.
What Statistical Data Does Kyte Collect About My Business?
Kyte is designed to help you both sell more and manage better.
Because of this, the platform takes data regarding your sales and transforms it into clear and objective statistical reports. Thus, you can understand the information without needing Excel or an expert to do the math.
However, before you can worry about how to analyze the information provided, you need to understand the concepts behind collecting this data.
Check below the statistics collected by Kyte and what each one means:
- Average Ticket Size;
- Sales Tax;
- Payment Method;
- Top Products;
- Top Customers;
- Sales by Staff.
Revenue is the sum of all your sales during a given period. It's all the amount you received for selling your products and/or services.
Follow the example: an entrepreneur has a shoe store. Each pair costs $ 60 and she sold 100 pairs over 30 days. In other words, her revenue that month was $ 6,000.00.
Revenue = quantity of products sold x sales price
It serves as a thermometer, allowing you to analyze your sales performance, and is needed in calculating other data (which will be explained later).
Knowing your revenue is also important to know how much you have to pay in taxes.
Here's a point that confuses many people: revenue is not the same thing as profit. Saying that you had $ 6,000.00 in revenue in the month does not mean that you profited that amount.
For this reason, the previously calculated revenue is called gross revenue, since it does not include anything other than the money that went into your store's cashier. This is the data that Kyte provides for you.
On the other hand, net revenue starts with the same calculation, but then it is necessary to subtract the expenses with sales operations from the value found, such as taxes on the amount obtained, fees charged by credit card companies, and product returns.
Following the same example of the shoe store: imagine that the entrepreneur had 10 pairs returned (which corresponds to $ 600.00 leaving the store cashier and returning to customers) and that she had to pay 5% of taxes on the amount collected (the equivalent of $ 270.00).
Therefore, the net revenue of the entrepreneur was $ 5,130.00.
Net revenue = gross revenue - sales taxes
Now, you might be wondering “if this is revenue, what is considered profit then?” The answer is just below.
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Profit is what remains of the entire amount obtained from sales after subtracting your business expenses in general.
When calculating net revenue, you discount only the fees related to the sales process. To calculate profit, you need to discount what you spend to support your business.
Just so you have an idea of what we are talking about, think about this: if the company earns $ 5,130.00 net, but spends $ 8,000.00 to keep the business standing, then it profits absolutely nothing. The merchant was left with a negative $ 2,870.00 in the cash register.
To be viable, you need to earn more than the amount spent on your business expenses – which are not few:
- variable costs (expenses that vary and are linked to production), such as raw materials for manufacturing a product or purchasing from a supplier;
- fixed costs (expenses that do not vary and are linked to production), such as employee salaries;
- variable expenses (expenses that vary and have no connection with production), such as sales commissions;
- fixed expenses (expenses that do not vary and have no connection with production), such as electricity.
You can calculate your gross or net profit. To find the gross profit, you subtract from the revenue only the expenses related to the actual production (that is, the fixed and variable costs).
Gross profit = net revenue - (fixed costs + variable costs)
To find the net profit, you subtract all expenses from revenue (i.e., fixed and variable costs, in addition to fixed and variable expenses).
Net profit = net revenue - (fixed costs + variable costs + fixed expenses + variable expenses)
Important: the data provided by Kyte regarding profit is different from those explained above. The value calculated by the platform subtracts from the revenue only the cost price of the products, indicated by you when registering the items in stock. Therefore, the indicated profit is not gross or net, but another one.
Still, it's interesting data to have on hand to know if you're charging a fair price for both the customer and your store.
Average Ticket Size
The average ticket is the average value of your sales during a specific period. In other words, it shows you an average of how much you bill per customer.
It serves to analyze the growth of your business since a high average ticket means that your sales are performing well.
Knowing the average ticket helps with financial planning and sales forecasting, and even facilitates decision-making.
One of the ways to calculate the average ticket is to take the gross revenue in the period under analysis and subtract the number of items sold in that time.
Continuing with the initial example: our entrepreneur friend had revenue of $ 6,000.00 in the month when selling 100 pairs of shoes. So, her average ticket during the month in question was $ 60.00.
Average ticket size = gross revenue ÷ sales volume
The number of sales reported on Kyte is the total number of items you have sold in a given period. You can filter this data by day, week, month, or year, with whatever time frame you want.
From these numbers, Kyte can show you which days of the week and even times you sell the most. All this is to help merchants promote more targeted actions with more chances of success.
Remembering that the chart with the sales data, as well as all other numbers, can be exported to email, social networks, or the cloud service of your choice.
Sales tax is the amount you charge extra for your products to cover the cost of delivery or another service, for example.
You configure the amounts you want to charge by opening the Kyte app, going to Settings, and then Sales Tax.
You can add a percentage to the final price of the product (similar to the service fee charged in restaurants) or choose not to add any amount as it will already be part of the price, such as the tax on items.
In this second case, the fee will appear highlighted both in the cart and on the receipt.
All of this is for you to have more control over your sales and greater knowledge about the income obtained from commerce.
The tab with statistics on means of payment informs the methods most used by your customers at the time of purchase, be it cash, credit card, debit card, or another one, during a certain period.
It helps you understand your customers' behavior and preferences. Knowing your audience better is essential to succeed with your actions and services.
The product ranking lists the goods your store has sold the most over a certain period. You can see the quantity sold and the amount invoiced.
This information helps you to know which items are most successful with the public, and which deserve more attention in the catalog and stock.
The customer ranking shows the most loyal consumers and fans of your store in a certain period.
You can see the name of the customers who buy the most from you, the amount they spent, and the number of times they completed a purchase.
Based on this information, you have more knowledge about your clientele and can carry out special actions for the most loyal customers.
Sales by Staff
This tab is very interesting for those who have a team of employees. It allows you to view the employees who sold the most during a certain time.
You have access to the number of items sold per employee, the value obtained from these sales, and how much, in percentage, this corresponds to the total sales made in your store.
From this, you can highlight the performance of certain professionals, understand if they had a different sales strategy and, if applicable, pass it on to the rest of the team.
How Can I Access Graphics, Statistics, And Sales Reports About My Company?
To gain access to essential data to manage your business and keep it financially healthy, you need a platform that brings it all together in a clear way.
No one deserves to waste hours of the day trying to understand Excel spreadsheets and charts, right?
Kyte generates all the information you need to evolve your business and grow even more.
By subscribing to the PRO plan, you have access to all the reports you need for professional financial monitoring.
You can access this information on your computer (if you use Kyte Web), tablet, or even on your cell phone.
To view the data, do the following:
- Open the Kyte App or Kyte Web menu.
- Click Statistics.
- Enter the desired period for data analysis and go to Apply filter.
- Done! You will see all data tabs in list format. If you want more details, just click on them.
Now it's up to you! Analyze all the information provided and monitor the reports frequently to always be on top of your business movements. Good luck!