Four KPI categories that can help you achieve operational success are the customer experience, store productivity, order fulfillment, and employee performance. In this blog, we will dive into each category and discuss the importance of measuring those metrics, and how they can be improved.
1. Customer Experience:
The customer experience should be your top priority as it directly impacts your revenue. Measuring customer satisfaction through surveys, reviews and social media feedback can help you develop strategies to improve your customers' experience in the store. Some of the KPIs that can be identified to measure customer experience are Foot traffic, conversion rate, bounce rate, average transaction value, return rate and customer loyalty
To enhance the customer experience further, retailers can explore innovative offerings such as indoor navigation and location-based promotions, personalised in-store experiences, and mobile checkout options.
2. Store Productivity:
Store productivity is another crucial factor that can influence revenue. Measuring store productivity KPIs can identify inefficient processes in your store, such as slow-moving inventory, poorly managed floor plans, and excessive labor costs. The tangible improvements that retailers can expect through monitoring store productivity KPIs are increased sales per square foot, improved inventory management, and reduced labour cost.
Some KPIs for measuring store productivity are Sales density, transactions per hour , in-store traffic, inventory turnover, and specific product sales.
3. Order Fulfillment:
As technology continues to advance, so does the growth in e-commerce, and more consumers choose online shopping as a preferred method of shopping. Therefore fulfilling customer's order is crucial for delivering a high level of customer service. Businesses need to ensure they deliver the right products, in the right place, at the right time. Some key order fulfillment KPIs, include order accuracy, order cycle time, and customer returns.
Retailers can explore technologies like AI, Machine Learning to effectively manage real-time inventory, to act on inventory signals which result in quicker order fulfillment time.
4. Employee Performance:
Retail is a customer-centric, human-driven industry. Thus, employee performance plays a key part in driving an impressive in-store experience. By measuring KPIs like employee retention, employee satisfaction, and employee engagement, retailers can improve employee morale, reduce turnover, promote a positive work culture and ultimately, achieve higher sales.
Furthermore, KPIs like Number of customers attended, Conversion rate of customers attended, and average transaction value of customer attended can help take employee performance tracking to next level, which eventually helps in improving customer experience.
Conclusion:
In conclusion, accurate data is essential when measuring your business performance. By identifying and monitoring the right KPIs, retailers can identify inefficiencies, improve customer service, boost employee morale, reduce costs and ultimately drive revenue growth.
Furthermore, by using advanced technologies like Artificial intelligence, Machine learning, computer vision and Internet of things, retailers can extract even more insights from their KPI data, and implement strategies that enhance the overall customer experience. Implementation of these KPIs help retailers deliver a more seamless shopping experience, which in turn leads to happier customers, stronger sales, and business success.
Artificial Tulip: This blog emphasizes the usage of technology, specifically AI and Machine learning , in retail industry to improve retail business performance. Artificial Tulip is AI company that helps retailers with AI-driven retail solutions, that improve the retail industry insights and improves the overall business performance.