Retail KPIs: Essential Metrics Retailers Need to Track
You’ve heard of the traditional retail KPIs before: total sales per square foot; conversion rate; gross and net profit; YOY growth; foot traffic.
But what about the ones that are less identifiable and observable related to in-store execution—the ones that tell you how well your stores are doing when it comes to associates accurately and efficiently carrying out tasks?
Here are the metrics you need to monitor if you want to get a leg up on the competition and make sure your stores appear exactly the way you want them to.
The Essential Retail KPIs and Metrics Every Retailer Needs to Track
Task Completion Rates
Often, assigning tasks to store-level associates can feel like taking a shot in the dark. You send out directives, but it’s impossible to know if the message gets received or implemented—until you finally get a response a week later, with little proof the task got completed accurately or on time.
By gaining access to task completion rates—store-by-store, user-by-user—retailers get an instant overview of which ones got completed, as well as their completion ratio, to see who’s consistently finishing tasks and who are missing directives.
Finishing a job is one thing, but properly doing it is another—because if your stores are speeding through their tasks, but they’re not doing them correctly, what’s the point?
Looking at approval ratios allows assignees at HQ to see whether or not users are effective with their store-level execution and compliance. By dividing the total number of approved tasks by the number of completed ones, it gives you a quick glimpse into how accurately your associates are carrying out their duties.
Average Time to Complete
Some people are speedy. Others are as slow as snails.
By looking at the average time it takes users to complete each task, managers, and higher-ups can get better insights into how efficiently stores are spending their time on tasks.
Combined with completion and approval rates, it lets those at the admin-level better score and monitor their stores to see who’s meeting expectations.
See Who’s Viewed What, and When
When it comes to important correspondences that require immediate action like product recalls, timing is everything.
But the same is true for planograms, changes to standard operating procedures, and product guides—if the information isn’t received on time, chances are your stores don’t appear brand consistent from location to location.
With today’s retail software, users can often see exactly when someone’s viewed a post, private message, comment, or reply, making it easy for retailers to hold their users and stores accountable.
Overall User Engagement
Enterprise software isn’t worthwhile if no one in your organization is using it.
Look for software that sends users push notifications and emails on what they may have missed, so users can stay up-to-date on everything that’s happened on the platform that they may (or might not of) seen, including likes, comments, and more.
Typically, it can take upwards of eight hours for someone high up at HQ to manually put together information, or assign a task to multiple users, send it out, and make sure it’s been received and seen by the appropriate people.
Retail software drastically cuts down on the time it takes to do even the most complex interactions and responsibilities, no matter how many assigned users are involved.
The Foko Retail Advantage
Tracking KPIs and metrics through Foko Retail allows retailers and brands to keep score of all of their stores.
Think of using us almost like a report card for your business: once benchmarks have been decided upon, it’s easy to monitor the effectiveness of your communication, task assignment, and in-store execution, all from one dashboard.
Not only that, but we help you on your journey by hosting onboarding sessions and quarterly business reviews that take you through your stats, as well as develop best practices based on our highest performing clients.
If you’d like to learn more, request a demo today.
About the Author
Matthew Ritchie is a content marketing specialist and former arts and culture journalist. He lives in Ottawa, ON. When not researching and writing about the retail industry, he can be found hiking the trails of nearby Gatineau Park or alphabetizing his record collection.