Profit Trees Overview
The Profit Tree provides a visual deconstruction of the Retailing Profit metric to help users understand which input metrics (metrics that we can directly impact) can drive profit impacting change. The trees are created by adding, subtracting, multiplying or dividing many key cross-departmental business metrics. If you see a “~” symbol, this suggests that the metric influences the one before it, but is not a direct part of the equation.
DynamicAction diagnoses an Order, Product and a Customer Profit tree. The Order Profit Tree deconstructs Profit into key order level metrics. The Product Profit Tree deconstructs Retailing Profit into key unit and inventory level metrics and the Customer Profit Tree deconstructs Retailing Profit by customer segments.
Product Tour: Profit Trees
Profit Tree Options
On the Profit Tree screens, you will find a number of options to help you customize your view:
- Zoom controls. You may zoom in or out by clicking the icons or by moving the slide control up or down.
- Clicking the reset icon will return your screen to the original/default tree layout.
- Expand/Collapse. You may expand and collapse nodes of the tree by clicking the icons to the right of each tree node
- Metric Overlay. You may click any metric for additional detail and navigation options by clicking the metric node or the magnifying glass within the node.
- Color By. The color by drop down box allows you to toggle between viewing the metric border colors illustrated by % change (Green=positive direction; Red=negative direction; Yellow=moderately negative direction) or by Metric Group (view legend to understand group colors).
- Compare to Period B: Choose to compare to your B period selected on your calendar or view the metrics over a 13 Period Average
- Include Inventory Metrics. This checkbox is only available on the “Product” Profit Tree. Selecting it will start the tree with the Return on Inventory metric and branch into multiple metrics to deconstruct inventory performance.
- Order Profit Tree 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. The tree is intended to reveal the input (low level, action driving) metrics on which you can focus to drive profitable change. Viewing the tree helps you pinpoint which areas of the business are most causal of performance.
- Customer Profit Tree deconstructs Product Profit into a variety of customer segments and metrics. The tree is intended to pinpoint which groups of customers might be most responsible for change in profitability. Review the metric glossary or click on the “Data Source” button in the metric overlay for detailed definitions on each metric including how each customer segment is defined.
- Product Profit Tree deconstructs Retailing Profit into a variety of metrics including Product, Marketing, Content, Finance and Operations metrics. The tree is intended to reveal unit and inventory level detail and is setup well to apply product category and brand filters.
- Transaction Profit Tree* deconstructs Store Profit into transaction level metrics intended to paint the big picture of what had the most impact on store profit – transactions, markdowns/promos, operating cost, or footfall. The tree is intended to reveal the input (low level, action driving) metrics on which you can focus to drive profitable change. Viewing the tree helps you pinpoint which areas of the business are most causal of performance. *Only for our Omnichannel clients
Note: The Product Profit tree also has an “Include Inventory Metrics” button which will shift the tree to a breakdown of Return on Inventory and add additional inventory metrics to the view.