Wooqer’s Post

What is KPIs (Key Performance Indicators) commonly used in retail environments include: 1. ATV (Average Transaction Value): This metric measures the average amount spent by a customer during a single transaction. It helps assess the effectiveness of sales strategies, upselling techniques, and the overall value of each customer interaction. 2. UPT (Units per Transaction): UPT measures the average number of items sold per transaction. It provides insights into the effectiveness of cross-selling and upselling efforts, as well as the overall product appeal and customer purchasing behavior. 3. SC (Sales Conversion): Sales conversion rate measures the percentage of customer visits that result in a purchase. It helps evaluate the effectiveness of sales tactics, staff performance, and the attractiveness of products or promotions to customers. These KPIs are essential for monitoring and improving retail performance, enhancing customer satisfaction, and driving business growth.

knows KPI's of your store. The KPIs of my store included sales revenue, customer satisfaction, inventory turnover, and employee productivity. KPI's of your store: Achieving monthly and annual sales targets. Customer satisfaction: Measured through surveys and feedback. Inventory turnover: Ensuring efficient management of stock levels. Employee productivity: Tracking sales per employee and overall performance. KPI-Key performance indicator reflect your store ATV ,UPT ,footfall conversion and shrinkage A) ATV >>(Average Transaction Value) = Sales / Number of transactions In other words, to calculate the average transaction value for a certain period of time, all you have to do is take the total sales figure for that time and divide it by the number of sales transactions made. B) UPT>>>Units Per Transaction (UPT) A basic unit per transaction (UPT) is calculated by dividing the number of items purchased by the number of transactions for the period. C) Footfall : Footfall is the number of people entering an area, shop or building in a given time. The time is the period of your choosing - each hour, day, week, month or even every 5 minute interval. Footfall is a key performance indicator essential for measuring many other kpis, like sales conversion and average shopping time. The following steps outline how to calculate the Footfall Ratio. First, determine the total number of people entering the store. Next, determine the total amount of time (hrs). Next, gather the formula from above = FTR = #P / T * 24. Finally, calculate the Footfall Ratio. D) Conversion ::Conversion in retail is the total percentage of store visitors who pay for a product or a service. Businesses often measure their conversion as a rate comparing buyers with non-buyers Conversion rate = (total number of sales / total number of visitors) x 100 E) Shrinkage :Retail shrinkage occurs when a company's inventory decreases for reasons other than sales, and can be attributed to five main things: administrative errors, operational loss, vendor fraud, employee theft, and customer shoplifting. Inventory Shrinkage Rate = (Recorded Inventory – Actual Inventory) / Recorded Inventory Multiply your inventory shrinkage rate by 100 to convert it into a percentage.

A retailer's imperative is profit💲 Profit comes from retained customers 🛍 Retention comes from customer movement through the lifecycle 🔁 How you measure that movement requires looking beyond channel metrics to customer metrics -- from identification rate and purchase frequency to retention rate and survivorship. 📊 Sharing Retail's FIRST Customer Growth Benchmarks Report where you can see, by vertical, how retailers are performing against these metrics and where the growth opportunities lie. https://bluecre.co/3w8EbY2

value = fn(price, quality, service) I have posted this many many times, maybe time to dig deeper The formula actually comes from work using regression to understand price elasticity in the market. What was found was that in certain customer groups, they are much more sensitive to the price lever than others. When you look across portfolios, this mainly holds with Stable Base of consumers who YOY perform well for a business with little to do with discounts. The other two elements, quality and service, were comprised of the higher value product selected vs the lesser quality more disposable products and the price sensitivity there. It was found that certain customers are MORE prone to spend MORE money on high quality merchandise that served them longer. BUT, the caveat was that if the price doubled, they would think twice, and if it tripled they would shop elsewhere. There are limits to the elasticity of price for all consumers. Service was derived from how fast products were delivered, return rates, any complaints or praise that came from customers. And as you can guess, the negative feedback came from people more price-sensitive than people who were less price-sensitive. Loyalty does not exist. Loyalty is an idea in your head you should stomp on. Loyalty implies the customer owes you something. You deliver great price, quality and service so you are loyal to me if I change it. Loyalty only exists for high premium exclusive products (read Tiffany's, Roloex, Mercedes) but generally is wholly absent in everyday retail. Every single customer who comes to your store will see every single product offering you have through a varying lens of (price, quality, service) Because every customer values products in different ways. There are customers with extremely strong affinity for certain brands like Yeti, Stanley, Nike, Apple, etc. But for the most part, retailers mix loyalty with frequency (and in RFM, the frequency was always a proxy for customer preference). But don't ever fall into the trap of a customer being loyal. A lot of merchants are finding out right now that they are not.

A higher UPT indicates stronger sales and better inventory management, contributing directly to increased revenue and improved profit margins. Retailers can boost customer satisfaction through upselling and cross-selling strategies. #Retail #UPT #SalesGrowth #BusinessStrategy #CustomerExperience #RetailMetrics

𝗔𝗦𝗣 (Average Selling Price) ASP is a key metric used in business and finance to determine the average price at which a product or service is sold over a specific period. It is calculated by dividing the total revenue from sales by the number of units sold. 𝗥𝗲𝘁𝗮𝗶𝗹 𝗸𝗽𝗶'𝘀: Key Performance Indicators (KPIs) in retail help measure the effectiveness of business operations, sales, and customer satisfaction. I'll be sharing KPI'S, if you like this post follow for more. #asp #retail #sale #selling #retailanalytics

We’ve invested in customer identification in part because we knew it would help retailers drive repeat purchases. And our first-ever Benchmarks Report shows just how powerful identification is. We found that retailers with ID rates above 40% had repeat purchase rates that were 53% higher than average. Retailers with ID rates of less than 10% saw repeat purchase rates that were 33% lower than average. This is true no matter what retail vertical you are in. We also found that one-and-dones are everywhere and they’re everyone’s problem. 74% of buyers only purchase once. But that also makes them your best opportunity to drive more ROI from your existing customer file. Which brings us back to identification: To convert those 74% of buyers into repeat customers, you need to be able to identify them. If you don’t know what your identification rate is, or how to increase it, you’re at huge risk of falling behind. You can read the full report here: https://bluecre.co/3w0ylrT. And you can learn how to improve your identification rate by getting in touch with me or anyone on my team.

𝗔𝗧𝗩 (Average Per Transaction) ATV measures the average value of sales made during each transaction. It helps retailers evaluate how much customers spend per purchase, providing insights into sales performance and customer purchasing habits. 𝗥𝗲𝘁𝗮𝗶𝗹 𝗸𝗽𝗶'𝘀: Key Performance Indicators (KPIs) in retail help measure the effectiveness of business operations, sales, and customer satisfaction. I'll be sharing KPI'S, if you like this post follow for more. #atv #retail #sale #selling #retailsucces #salestrategy

In 2009, Walmart asked customers the wrong question and it cost them $1.85B dollars in sales. Here’s what they asked: Would you like Walmart aisles to be less cluttered? In hindsight, the question is obviously biased. It’s like asking: Would you like us to clean up the mess we made? It’s not a sincere question about customer experience. It’s Walmart asking customers to agree with a solution they invented. Naturally, the response from customers was a resounding “Yes please!” - so Walmart launched a 5-year plan to reduce clutter and make the stores easier to navigate. 15% of inventory was removed from stores.  Shelves got shorter.  End-of-aisle displays were slimmed. No more big pallets of stuff stacked in the middle of aisles. Walmart was more clean and open, like Target - and yes, customer satisfaction shot up. But you already know what happened next: The customer feedback they got was a false positive. Sales tanked.  The project was cut and deemed a failure. The execs who tried the experiment were fired. There are 2 major takeaways from Walmart’s mistake that I don’t want you to miss: 1. The customer is usually wrong Do not rely on customer opinions and preferences to make business decisions. This is fickle data. As David Ogilvy once said, “‘People don’t know what they feel, they don’t say what they know, and they don’t do what they say.” For customer insights you can trust, focus on what customers do and how they behave. Actions and behaviours are objective data points. This is where you’ll find reliable patterns you can make decisions from. 2. Customer research does not live in a silo Before you do research, get clear on the business measure of its success. Chances are, the true outcome of research is not: -better customer experience -a higher NPS score -better customer satisfaction These are critical, but they don't live in a silo. If you move the needle on customer experience, you move the needle on: -sales -retention -AOV The trick is to move it in the right direction (unlike Walmart). If you want to make research work for you, and not against: 1. Find the key business metric you want to move. This will help you make a business case for the research too. 2. Then work backwards to find the right research approach and questions to match. Research is pointless if it’s not tied to the business. But it’s also dangerous if it is tied to the business… and its done wrong. 

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