You’ve worked hard to get new customers, so it’s only right that you figure out whether or not you’re keeping them. Learn about the tools and formulas that’ll help you identify your KPIs, so you can start measuring your way to the top. You should measure this KPI retail to track things like product sales over time, or employee sales performance. This is a retail metric that measures how much time customers stay in a specific areas of your store. Calculation: Total revenue (for a given time period) / number of transactions = average purchase value. #msform select{width:100%;color:#000;font-size:13px;border:1px solid #ccc;border-radius:3px;margin-bottom:10px;} It also is an indicator of staff performance. Second, using year over year as a focused retail metric highlights long-term trends. To measure the amount of inventory shrinkage, conduct a physical count of the inventory and calculate its cost, and then subtract this cost from the cost listed in the accounting records. 15 Fundamental KPI Retail Metrics [And How to Measure Them], 7 Tips to Increase Foot Traffic to Your Store, https://ehopper.com/wp-content/uploads/retail-metrics-1.jpg, 30 Broad Street, Floor 22, New York, NY 10004 ||, How to Futureproof Your Business with NFC Payments, tracking your inventory through your point of sale, What are Merchant Services and How it Works (Guide), How to Create a Contactless Ordering Experience at Your Restaurant, How to Prepare Your Business for the Holiday Season with Online Ordering, How to Create Contactless Menu for Restaurants with QR Code, How to Bring your Brick and Mortar Business Online, Average number of shoppers per transaction. It’s important for you to decide a useful time frame to use when measuring this – this will vary between different business types. Not considering the costs involved in the transactions or process. Another KPI is the sell-through percentage, which simply means the percentage of items sold, compared to the amount of items that were available for sale. This is a vital KPI, because it can help you optimize your pricing and sales strategies, such as bundling items and increasing prices on low dollar amount items. Your conversion rate tells you how good you are at turning lookers into buyers. Here’s a look at the average sales per square footage in different retail sectors: The right sales and retail productivity tactics will depend on your store, but here some general tips for improving your sales per square footage: Related: How to Increase Retail Sales per Square Foot and Improve Store Productivity. Among other retail store metrics, it’s grouped with customer purchasing data like hold/wait time, service time, and transaction time. Find a POS solution that tracks sales per employee, and use that data to come up with sales targets and determine who best associates are. KPIs are useful in making proactive business decisions and, when regularly monitored, provide you with insight into important areas of your business. Your POS makes this process a lot easier with the right solution. With eHopper POS, these sales reports can easily be exported for further analysis. How it’s useful: Measuring average transaction values can help you identify various small areas of improvement to your store. The first step is to accurate measure it! A successful business must constantly analyze what might make them grow. Calculation: Total number of sales in a defined time period. The email address you provided is already in use. Knowing your KPIs and taking appropriate action will move your business forward. Net profit is the gross profit (revenue minus cost of goods) minus operating expenses and all other expenses, such as taxes and interest paid on debt. Your customer retention rate tells you the amount of customers that return to your store. Any business owner needs to keep a close eye on their inventory turnover & sell-through rate. Retail Analytics: How to Use Data to Win More Sales and Customers... How Clever Customer Research Helped This Retailer Sell $10 Million Worth of Products... 6 Inventory Metrics You Should Track (and How to Do It)... a retail software solution that crunches the numbers for you, How to Increase Retail Sales per Square Foot and Improve Store Productivity, a POS solution that tracks sales per employee, meeting and beating your retail sales targets, Want to Improve Your Profit Margins? Employee A has sold 5.1 units per transaction and B 3.0 units per transaction. But maybe you don’t know how to use numbers to put MORE money in your pocket? This is because any increase in revenue won’t necessarily translate to profit. It provides the percentage of inventory of a specific product that was sold over a chosen time period. Using data from a specific time period, taking into account seasonal expectations if need be. Here is our list of 7 KPIs for Retailers. by Mick Devine | Last updated Nov 26, 2019 | Educational, KPIs. If you upsell a product that’s irrelevant or if you’re selling in such a way that you’re coming off as pushy, then you’ll not only fail to convert the customer, but you might even lose the original sale.

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