Digital/Omni: How Do I Use Profit Trees?

 

The Profit Tree visually deconstructs the Retailing Profit metric to help users understand which input metrics can drive profit-impacting change. These trees are created by adding, subtracting, multiplying, or dividing cross-departmental metrics.

 

How to Navigate to Profit Trees

• Select Dashboards from the left-hand navigation panel. 
• Click Profit Trees. 
  
  

 

How to Use Profit Trees

 

Three different types of Profit Trees are available in EDITED Digital/Omni.

• Order: This deconstructs Retailing Profit into order-level metrics intended to paint the big picture of what had the most impact on profit—order value, markdowns/promos, marketing, conversion, or traffic.
• Product: This tool deconstructs Retail Profit into various metrics, including Product, Marketing, Content, Finance, and Operations metrics. The tree is intended to reveal unit and inventory-level details and is well-set to apply product category and brand filters.

• Customer: This section deconstructs Product Profit into various customer segments and metrics. The tree is intended to pinpoint which groups of customers might be most responsible for the change in profitability. 
  
  

 

Each Profit Tree will begin with the metric Retailing Profit. 

• Click the + and -  buttons to expand what drove that metric performance. 
  
  

 

In this example, we can see that Retailing Profit is performing negatively, tracking -28.27%. This was driven by Retailing Profit/Order, which was tracking negatively at -60.34%. 

 

 

 

You can continue expanding these metrics as required to take action in the appropriate areas. 

• Click on any metric, e.g., Orders, for a Metric Details Tab detailing what drives individual performance.
  
  

 

A side panel will appear, including the following information on that Metric. 

Topline Metrics

• Value for Period A.
• Value for Period B & % change.
• Value for Last Year & % change.
• Value for Target & % change.
  
  

• Line Graphs: Trend & Prediction performance and fluctuations over time.
  
  

• Analyze: Positive, Negative, or Mixed Drivers that impacted the metric.
  
  

• Act: including a hyperlink to the most relevant Decision Tree report to drive action eg. Operations Opportunities.
  
  

Profit Tree Customization Options

There are several options to customize your view in Profit Tree reports. 

• Zoom in or out by clicking the icons below. 
  
  

• Click the Color By Metric dropdown below to view the metric border colors based on metric performance (green = positive, red = negative) or by Metric Group (finance, product, etc.).
  
  

• Click the Compare to Period B dropdown to choose to compare to your B period selected on your calendar or view the metrics over a 13-period Average.
  
  

 

Click the Include Inventory Metrics checkbox to start the tree with the metric Return on Inventory and branch into multiple metrics to deconstruct inventory performance.