| #ffffff;" /> | | | | – more than five and the reporting system is too |
| Starting a retail business means you’re excited. | | | | complex, confusing, and ambiguous. The five |
| Did you know – by adopting Best Practice Retail | | | | KPI’s for retailers are: |
| Sales Performance Standards you can immediately | | | | Sales per hour - a statistic tells us about the speed at |
| increase your sales and profit expectations by as | | | | which each individual salesperson is selling or attending |
| much as 30%! | | | | to customers compared to everyone else on the shift. |
| Why – because achieving sales objectives is | | | | Average Sale – the average selling price of |
| more than just about what’s on your shelves | | | | each individual salesperson compared to everyone |
| and what your store looks like – it’s | | | | else on the shift – higher averages show a |
| about having a customer focused mentality driven by | | | | greater knowledge of product as the salesperson is |
| key performance indicators (KPI) to inform staff at | | | | able to sell higher ticket items. Low statistics reveal the |
| every level about the condition of the playing field. | | | | salesperson lacks skill in either product knowledge or |
| Complicated? Not at all. Retail Sales Performance is | | | | effective probing. |
| just like Sports Coaching. How would sports coaches | | | | Items Per Sale – tells us about the ability of the |
| know how to focus their athletes without statistics? | | | | salesperson to add-on to a sale. |
| How would racing car managers know how to fine | | | | Conversion Rate – tracks how many visitors to |
| tune their engines and performance – it’s | | | | the store are turned into customers. |
| all about statistics. When last did you watch a game | | | | Wage to Sales Ratio – compares a |
| on TV without them? They tell us about trends, | | | | salesperson’s hourly wages to hourly sales. |
| behaviors, opportunities to increase performance, and | | | | This KPI identifies your clear performers and |
| they forecast the short to medium term future – | | | | underperformers – and their value to you. |
| enabling us to understand why and where we are | | | | The most common reason retailers do not track the |
| heading. | | | | five vital KPI’s at a staff (team player) level, is |
| Statistical measurement of fundamental sales | | | | their inability to easily and quickly, record and calculate |
| performance drivers for any retailer is a prime need. | | | | data, to create meaningful reports. After all, one needs |
| With all manner of spreadsheets, POS systems | | | | to track hours worked, set goals, track planned versus |
| reports, Dashboards and Scorecards, we use Key | | | | actual performance, and somehow level the playing |
| Performance Indicators (KPI) to communicate the | | | | field for all Salespeople. It can be a lot of work. |
| strategy of the shareholders to the individuals in the | | | | In a sports match the playing field is level at all times |
| company and we employ feedback systems to report | | | | because everyone is simultaneously on the field. In a |
| the results. It is common practice to compare what we | | | | retail environment some salespeople will work during |
| have forecast with what has actually taken place | | | | fast periods and others during slow periods of the day. |
| – statistically – so we can make | | | | A salesperson working during the lunch hours should |
| judgments, changes and plans. | | | | be expected to sell more than a salesperson working |
| It is important to recognise that the standard (senior | | | | early morning or late afternoon. So any realistic |
| level) business indicators such as profit margin and | | | | reporting system is going to have to weight individual |
| wage costs do not drive bottom line sales on the shop | | | | sales targets – otherwise the data becomes |
| floor. You cannot walk up to a Salesperson and say | | | | ambiguous. |
| “We did 80% of budgeted sales – | | | | Critical to any Retail Sales Management Solution is the |
| please increase your performance.” | | | | ability to “determine the most deficient statistic |
| That’s like the manager of a football team | | | | of the five KPI’s because it is logically |
| saying to a player “We lost the past few | | | | understood that improving the worst KPI first will have |
| games – you have to do better.” To the | | | | the greatest increase in sales and staff motivation. |
| salesperson or player the information is useless | | | | Imagine if you had a really simple to use Staff Roster |
| – they cannot see a clear reason for their | | | | (time and attendance software) that automatically |
| ‘under performance’. | | | | assigned individual, weighted, sales targets to each |
| What sports coaches do is take the Team | | | | salesperson, based on when they were working |
| Manager’s expectations (of winning) and filter | | | | – then integrated with your POS (point of sale) |
| them down to each individual player on the team | | | | terminal to instantly calculate the five (5) key |
| – so each player can win for them (and the | | | | performance indicators, and figure out the most |
| team). The coach measures performance of a few | | | | deficient KPI - on demand! What if that software went |
| highly enlightening KPI’s that tells the players | | | | further by having integrated sales behavior coaching |
| exactly in which areas to improve. In soccer it may be | | | | tips built right into the system? |
| recording the “number of times a player | | | | Playing the retail sales game to win means knowing |
| touched the ball”, or “number of | | | | why you are losing and how to go about fixing |
| attempts at goal.” In baseball the coach could | | | | problem behavior areas. It's easier to improve retail |
| track “number of players on 3rd base” | | | | sales skills than it is to re-stock a new product or |
| or “number of strike outs” etc. | | | | brand. |
| It is common practice in retail to employ only five (5) | | | | To win in retail, measure the five principal KPI’s |
| KPI’s to track individual performance and | | | | using an affordable solution – and put Best |
| deliver the on-target information for coaching purposes | | | | Practice in place for your fast track to success. |