Capture Demand, Not Just Sales
Of course you measure product and category sales, but if you're not also measuring product demand, you could be leaving a lot of money on the table, according to George Mollo, president of GJM Associates, an inventory planning and merchandising consultant.
"In your call center, set up a way to capture demand, not just sales. For instance, say you sell women's jackets in various colors. Black was the most requested color, but you ran out of black jackets, and some customers ordered navy instead. Meanwhile, other customers who wanted black didn't order anything. You need a way to measure how many black jackets you could have sold if you had them in stock. You need to know this in order to accurately plan inventory for your next catalog drop," said Mollo, during the session "Forecasting the Future: Tips and Tricks from Marketing and Merchandising," held during The Direct Marketing Association's Annual Conference in New Orleans in October.