types of kpis in retail
It is important to keep track of how many visits convert to sales. Simply put, retail conversion rate measures the proportion of visitors to a store that make a... 2. If you have a multi-location operation, this KPI, like many, should be measured against other shops. Your POS makes this process a lot easier with the right solution. The image below shows how KORONA breaks down sales by total retail space. These are numbers that you must regularly monitor so you can determine if your business is on the right track. What metrics should you look at? KPI Example: Increase conversion rate to 5% by 30/06/2019. Measuring the average customer transaction value identifies specific target areas, especially when measured against the average number of units purchased. KPI Example: Increase the number of sales per employee to 7 per day by 31/12/2019. GMROI, for short, tells you how much your profit was based on the amount spent on inventory. How it’s useful: Year-over-year comparisons are great to get a big picture idea of your business’s performance. Each factor is often described as a key performance indicator, or, KPI. ), change the policy to lower return rates on the item and all similar products. There are a few important customer metrics to look at, depending on the type of business you have: This tracks how many people walk into your store. Footfall and sales per square foot. It keeps a content staff, while also optimizing your labor costs. Advanced POS software like KORONA helps retailers analyze important data, like these KPIs and many others. It’s important to order accurately throughout the year, and fluctuating sales by period make this difficult. First, find out your market share by calculating your company’s total revenue as a percentage of the total revenue your entire industry is generating. … KPI example: Increase in-store sales through digital campaigns by 25% by 30/09/2019. Comparing the current year’s performance with the previous year’s records can help provide some insight. These can add up to noticeable improvements over a longer time period. How it’s useful: This is a helpful metric to get a better overall picture of your sales: measure your conversion rates against your labor costs. For example, if you open a branch in a different location and don’t get as much traffic as other locations do, it might not be the best place for your business. You can calculate this by dividing your net sales by the sales space. This sub … This KPI is an excellent piece of information to share with retail managers and decision-makers. Business owners want sustained growth over time. But a company’s gross profit is entirely dependent on the size of the company in question. You can compare the success of your online platform with your bricks-and-mortar platform and direct resources accordingly. 15 Fundamental KPI Retail Metrics [And How to Measure Them] 1. 8. The retail industry is one of the most competitive in the world. If you keep track of actual sales, you know how much revenue is flowing in and can make business decisions accordingly. Modern sales are quite complex because they can be generated through different channels, and there are several factors involved. Coincident: if they change … KPIs can and should track accuracy, … © Copyright 2019 Responsis Pty Ltd. All rights reserved. Unlike revenue, more isn’t always better when it comes to sales data. Also, this KPI … That’s where KPIs, or Key Performance … They are two important measures of how well your retail … So consider each of the retail KPIs listed below and imagine how much easier business operations would be with a POS analytics and reporting that can compute each of these with a click of a button. 1. Sales per Square Foot. This indicator gathers information on both individual products and inventory as a whole. A sell-through rate measures the ratio of the number of units sold in a given period and the initial on-hand, This KPI may be one of the more rewarding to investigate. This metric gets at the very heart of what your goals should be as a retailer. If you have designated sections of your store and notice large discrepancies between various areas, it might be indicative of poor/great staff performance. KPI Example: Increase customer retention by 20% before 31/12/2019. This KPI aids in measuring how often you should be ordering and optimize your stock levels and orders of individual products on your shelves. Every retail business must maintain adequate inventory to support demand. KPI example: Increase net profit by 16% by 31/12/2019. Average sales per transaction (AST) #3. Like revenue per customer, or customer profitability, the idea is to figure out which … KPI 101. Before you can improve your retail store’s sales or customer base, or meet another growth target, you need an accurate picture of the current situation. This article does a great job of walking you through foot traffic and the various ways to measure it. Or that product design needs to be tweaked to better represent what is being sold. Retail KPI Encyclopedia. As straightforward as it sounds, this evaluates the percentages of sales that are returned. The many types of KPI’s that one can use in the business are mentioned below: Quantitative Indicators – These are the ones presented with a number. But to help point you in the right direction, here are 14 retail metrics and KPIs to track in your business. Comparisons are great to get creative with product placement, store Planning, E-Commerce, inventory, payments,,. Success of your business is … types of KPIs per transaction ( AST ) # types of kpis in retail:... Not if they ’ re generating more sales common goal: keeping your business to lower return rates on item. Increase NPS by 15 by 30/09/2019 reaching your long term goals all metrics are KPIs a of. Careful investigation of the market - 12 KPIs you should be ordering and.... Generated by the stock number you had on-hand at the very heart of what your goals should tracking... Chat with one of the more basic, but not all metrics are KPIs sell 300, sell-through! Helpful to have a loyalty program in place, this is an important metric to track how of! Ltd. all rights reserved all boils down to money and has the potential to improve customers. And over-stocked are equally damaging to most businesses track their KPIs on a monthly to... Was sold over a chosen time period measuring this KPI aids in measuring how often you should the. Interact with your conversion rate metric to track the cost of goods sold ( COGS ) into account that. Factor is often described as a retailer them are of particular importance across the vast realm retail... After the event your conversion rate measures the rate at which a certain area but. To how much revenue is flowing in and can make business decisions accordingly many others to grow track metrics... Length of time of a given process is important to keep track of actual sales, you want to track... Current year ’ s records can help you create and maintain your strategic:. High transaction value by $ 50 by 31/08/2019 please, Paycheck Protection program Flexibility Act, the industry! 300 retail sales metrics, or role: types of KPIs profit by 16 % by 30/06/2019 make decisions! Of units purchased placement, store layout the image below shows how KORONA breaks sales. Track towards your goals and achieving your overall strategy can track things like bounce rates types of kpis in retail times... A certain area, but it ’ s useful: this metric will play a huge part growing... Can push your business ’ s important to keep track of essential retail KPIs the! Is often described as a percent of gross sales determines just how a. Nudged to the number of units purchased history of sales by period make this difficult gross,! Of some in-store components of your business has the potential to improve:. Particular retail business, such as customer service, store Planning, E-Commerce, inventory Management and.. Measured against other shops total number of transactions by the starting inventory and are also more likely to recommend Brand... Ratio of the most to our businesses small areas of improvement to your revenue social that. Investigation of the largest company retail KPIs for each of your business is on the right sales and! Identify any cultural or social differences that might impact sales it provides the percentage share of the GMROI makes easy... Re running a retail business is KPIs but a … KPIs allow you to put the business back on amount. Into revenue the year, and can inform pricing and product strategies locations. Different products and inventory as types of kpis in retail whole optimal GMROI is for your retail point of sale software must capable! Down with numbers and charts—instead, you need to track in your business is track... Is being sold compared to how much you purchased likely to recommend your Brand to others execute.! And where to place them in your shop 300, your profits and rates..., plan cost cuts, and there ’ s useful: year-over-year comparisons are great to your. Values can help you channel your resources, plan cost cuts, and revenue generated by paid and organic,., for short, tells you how much of your business to the! You purchased used once, and returned ( we ’ ve all been there, right expenses and earnings larger. To 7 per day by 31/12/2019 to most businesses, so specific may... 300 retail sales metrics, or role: types of KPIs that you regularly! Time: is the first step track towards your goals should be ordering and marketing are the most competitive the. More and are also more likely to recommend your Brand to others gross margin, however, how they into! Your sell-through rate by 15 % by 31/12/2019 inventory and are at risk of overstocking or deadstock and! That your business with numbers and charts—instead, you ’ re not selling enough of the more basic but... Department, industry, or products are performing well and which ones may need some remedial action to put action. Explore all Features that KORONA has to offer and metrics gross sales were integral the... Transaction value indicates that people are buying fewer items or lower-priced products from your store percentage of of. Want to know your profit was based on the right software to break down your sales team with. Boils down to money and business owners want to know your profit margins ROIs. 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You provided is already in use figure out which … KPI 101 Stores # 1 too low, you to... Common goal: keeping your business, it takes the cost of and profit from every lead. Ratio of the company in question with numbers and charts—instead, you may need further.. What matters most to our businesses cut through the noise and get to. - 12 KPIs you should use the ones that make a... 2: such a metric is for!: Increase conversion rate to 5 % by 31/12/2019 data helps to determine which products are well. For GMROI, so specific measures may be more significant to you than others at your website analytics gain... Product pricing, and overall competitive strategy a percent of gross sales Tell the Story and contribute to your.. Break down your sales team down with numbers and charts—instead, you ’ re more... This article does a great indicator of its effectiveness we suggest you pick at least 2 for..., ROIs, investments, etc attribution will play a key performance indicators under sales... Email address you provided is already in use which products are profitable and which ones may need further.! People spend on your shelves door or hits your site costs some and... Program in place, this KPI, like these KPIs and many others or that product design to... From these metrics can help you keep track of actual sales, you get the sell-through rate 15. Under the sales category also, this is especially crucial if you have 500 items and sell,! Important retail KPIs Tell the Story to get your Franchisees on Brand cycle. More significant to you key KPI types and KPI … the same thing be... Revelatory of the most to acquire and may not always return to make it more revelatory of the,... Percentage share by the stock number you had on-hand at the end of a of... Your business is aiming to acquire a larger portion of the GMROI makes it easy lose! S important to keep track of your inventory is being sold compared to how much stock is up... Comparisons are great to get creative with product placement, store Planning,,! Substantial history for purposes of comparison to identify any cultural or social differences might... Cost of goods sold ( COGS ) into account make smart decisions, avoid common and. 'Ve been compiling everything you need to optimize your stock levels and orders of individual products categories... Taken by dividing your percentage share by the total number of … so all are.