The key to measuring the success of your club is by analyzing critical data. Yet, most venues don’t look at their data to get an accurate gage of how well their club is performing. The problem is few venues have a system in place to analyze this data, and even fewer have the necessary time and resources to comb through data points to make sense of it all. As a result, venues are operating blindly and wasting time and money on areas that may or may not be working.
To get a true sense of how your venue is performing, you should be able to rattle off:
- How much money you made or lost over a given time period
- Which days of the week are your busiest
- What type of liquor you sell the most on a given day
- How many tables are reserved a night
- Which promoters are brining in the most guests
- Which servers are upselling the most and making the most tips
- What types of promotions or events bring in the most traffic
If you don’t have an answer to these points, it’s time to put an analytics system in place. Here are the 4 steps to do just that.
1. Use a platform that collects data on all areas of your venue
Don’t cut yourself short by only turning to your point of sale (POS) system to provide this data. While it’s true that most POS systems collect data, it’s oftentimes presented in convoluted ways. It’s nearly impossible to get a glimpse of your club’s employee performance, promoter performance, individual guest sales, or trending liquor sales. That’s why it’s more important than ever to turn to a system that not only collects, but also reports, the data you need in meaningful ways.
The best systems are fully integrated solutions that collect data from any area of your club and analyze and present it in one central spot in real-time. Make sure everyone who works at your venue has his/her own login and uses the system correctly to capture the most accurate data.
2. Identify what information is crucial to your venue
There’s a lot of data that gets collected on a given night, and there’s a lot of different ways it can be reported. But just because it gets collected doesn’t mean it’s going to be worthwhile information. Define the areas that are the most critical for you to analyze and set a goal for you to benchmark against. The more focused you are, the easier it’ll be to interpret.
3. Use filters to identify strong and weak areas of your venue
Integrated systems that have a filtering process are beneficial in a number of ways, because they:
- Allow you to identify the audience you want to measure (servers, promoters, customers, overall club performance, or all of the above)
- Collect data on any given area of your club
- Provide insight on trending liquor sales, which helps with inventory planning
- Report key information on individual guests – average spend, total spend, group size, favorite liquors, and top purchases – so you can better serve them
- Present the results you chose to identify in easy-to-read charts and graphs, which removes the manual labor of you combing through all the data
4. Optimize your efforts to increase profit
Review the data that’s presented, benchmark it against your goals, and optimize your results to work in your favor. If something isn’t working – such as a certain type of liquor isn’t selling well or a promoter isn’t providing results – then fix the problem. The more you now, the more you can do.
Parag Shah is the founder and director of sales at Vēmos. Contact him at firstname.lastname@example.org.