ROI Analysis: Part 3

posted on Monday, August 16, 2004
by Kyle Ritter

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In Parts 1 & 2, we discussed shrinkage/theft, inventory labor, and restocking expenses, revenue growth, gross margin, and inventory management. Continuing to Part 3 our 4 part ROI analysis series, we will discuss further ways you will find a significant return on your point-of-sale investment.

Re-stocking Shipping Efficiency

Reduce shipping expenses through better planning and management of the ordering process.

Lower shipping rates will be able to be achieved through proper planning and management of the purchasing process. Rather than having to pay higher rates to get items in quicker because inventory is running low, items can be sent by ground or cheaper methods to reduce costs. Lower shipping rates are also achieved through purchasing larger quantities and ordering by the palette.

Marketing Effectiveness

Increase the effectiveness of your monthly marketing budget.

Regardless of the size of a marketing budget, the ca|micro solution will increase the effectiveness of those marketing dollars through:

• Tracking ROI calculation for each marketing campaign.
• Use marketing dollars to target specific segments of the customer database including customers who haven't purchased recently or those who have purchased certain types of items.
• Use the data from marketing campaigns and sales activities to make better marketing decisions in the future.

Checkout Line Processing

Reduce the amount of time associated with checking customers out at the POS terminal.

There are multiple benefits that come from reducing the amount of time required to check a customer out. These include:

• Lower labor costs
• More satisfied customer that don't have to wait in line.
• Few customers who walk out due to long wait times in line.
• More parking spaces open in front of your store to allow other customers to shop and fewer customers who don't stop and shop.
• Employees are available to complete other tasks like retail floor management, stocking shelves, etc.

ROI Analysis: Part 1
ROI Analysis: Part 2
ROI Analysis: Part 3
ROI Analysis: Part 4

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