Actionable intelligence in retail. Retailers are constantly adapting to meet the needs of their customers and the demands of their markets. For efficient and effective adaptation that lasts, retail employees need to be kept in the loop with insights, metrics and KPIs. In this article, we’ll be covering five insights that you should be sharing with staff.
1. Conversion rate
A conversion rate describes the percentage of visitors who make a purchase from a given retailer. It can be calculated manually with the formula:
conversion rate = number of transactions / number of visitors
Conversion rates are fantastic KPIs to share with staff because of the wide range of operational insights they offer. A low conversion rate may indicate a problem with sales practices, customer service techniques, or customer engagement. Keeping tabs on a location’s conversion rate allows management to set attainable goals. Sharing this information with staff allows them to make small adjustments that help achieve them.
2. Average spend per customer
Average spend per customer is a KPI that tells you how much an average customer spends at your location. It can be calculated as:
average spend per customer = revenue / number of transactions
In the pursuit of better retail returns, sharing average spending per customer with staff helps them benchmark their sales performance against both organisational goals and historical averages.
This KPI will help your staff decide whether they need to introduce new products, prioritise upselling, or alter pricing.
3. Average number of visitors
This KPI is relatively straightforward – it’s a figure describing the average number of visitors that come to your store over a given period. Whether that period is a day, a week, a month, or even a year is up to you!
Sharing this information with staff allows them to prepare for busy periods in advance in order to maximise their potential. That might mean making sure shelves are stocked for the post-work rush or making sure more salespeople are available for particularly busy seasons.
4. Store performance
Store performance is a generalised KPI aimed to succinctly display a location’s overall performance based on several more targeted KPIs (e.g., conversion rate, average spend per customer, etc.). Generally, it measures success by benchmarking a location’s performance against organisational targets or goals.
The resulting KPI is something that can be shared with staff as an indication of the overall health of the retail location. This is a benefit to retail staff because it makes improvement a tangible source of motivation.
5. Top-selling items
This KPI simply describes what products are selling best at a given location. The benefits of sharing this information include streamlining purchasing and stocking, improving customer service and engagement, and addressing issues with sales practices. As with all of the KPIs mentioned in this article, sharing information with staff allows them to make necessary changes without waiting for information to trickle down the chain of command.
Understanding the benefit of these KPIs is one thing. Calculating and circulating them is another thing entirely. Innovation in the fields of AI and cloud computing has allowed for solutions that vastly simplify the process. Alertiee offers a complete solution that gives retailers the ability to track, analyse and share crucial KPIs with staff from a central reporting dashboard. This, in turn, allows staff to take corrective or supportive action quickly.
If you enjoyed this post: 5 Actionable Insights for Your Retail Staff, be sure to check out our recent IoT and AI pilot with Adnams here: AI and IoT for retailers how physical stores can enhance customer experience
Proven benefits of Alertiee technology
Alertiee will help you realise missing sales opportunities, stores’ performance based on conversion rate, and stores’ sales hotspots areas.
We support and guide you through how you best convert both inside and outside traffic opportunities by supplying you with options around service risks and how to serve your existing and potential new customers best.
Alertiee will help you to provide a harmonious customer experience across your omnichannel business. Our technology enables customer experience, marketing and retail teams to close the gap between customers’ digital experience and their physical experience.