As store processes and technologies continue to evolve, it’s important for retailers to address gaps within store metrics, KPIs and related improvement practices that affect associates and customers.
In partnership with EKN Research, we released research that identifies key issues driving the need for a new and improved retail KPI and performance culture. The resulting e-book, A New Store Excellence Scorecard, defines three primary pillars to measure store performance and new associated KPIs that help better evaluate business results. By focusing on these pillars, retailers can create a holistic performance management strategy and a better balance between sales and operational effectiveness.
Pillar #1: Understanding Customer Path-to-Purchase
Real-time data with new key metrics on in-store mobility, promotional effectiveness, conversion rates and shopper behavior enable a more seamless, personalized customer experience and help increase sales conversions.
- Number of in-store mobile check-ins
- Check-in to conversion ratio
- Digital-physical coupon or promo code redemption
- Shopper dwell time
Pillar #2: Ensuring Inventory Accuracy and Availability
Inventory accuracy and availability is the true foundation for retail success, regardless of channel.
- Allocation effectiveness and inventory turn
- Order fulfillment cost and cycle time
- Available-to-promise (ATP)
- Merchandise effectiveness and inventory turn
Pillar #3: Enabling Store Execution through Empowered Associates
Employee engagement and optimum labor hour utilization are effective tools for driving consistent execution and customer satisfaction.
- Engagement rates
- Schedule effectiveness
- Customer and employee satisfaction ratings
- Labor cost to sales ratios
To learn more, read the A New Store Excellence Scorecard e-book, the final installment of a three-part series. The first and second e-books, Customer Buying Journey and Inventory Optimization & Fulfillment, are currently available online.
Posted on May 12th, 2017