Procurement is one of the critical functions in the retail space as it has a direct impact on the top and bottom lines. Data complexity increases when multiple SKUs span across various distribution centers and stores. Adding to the complexity are the ever-changing needs and demands of the consumers. To solve the complexity of sourcing in retail management, these are the key metrics we customize in the dashboards:
- Supplier performance
- Order visibility
- Open PO aging
- Turnover ratio
- Day sales in inventory
- CDC/RDC stock positions
- Pending orders
Sales is the primary driver of growth in any industry. In today’s world where we have multiple channels and ever-increasing options, monitoring sales, and understanding the undercurrent in buying behavior is crucial to growth and success. To make it all the more effective, here are the critical metrics for this function:
- New/interesting reaction
- Rate of sales
- Forward cover assessment
- Style Performance
Store management deals with all aspects of managing a retail store—small or big, and in any format. A retail store has various moving parts, and the store managers are needed to understand their performances so that optimum throughput is delivered. To have this effectively done, we recommend these significant metrics for this function:
- Plan vs. Actual sales
- Growth vs. Last year sales
- Markdown sales
- Stock positions
Customers are inevitable in retail, and understanding them is one competency a retailer has to build, sustain, and improve incessantly. Loyalty programs have been a great source of information when it comes to what the customers want, which in today’s digital world is further augmented with online and offline behaviors. Here are the key metrics you can analyze in this function:
- Customer engagement
- Loyalty revenue penetration
- Lost, Loyal, and new customer
- AMS/ATV
- Buy channel
- Member revenue
- Member attrition
- Sales per price brand
- RFM analysis
Like any other industry, finance is a crucial function in the retail sector as well. It has tremendous margin pressure due to high availability of options and competition, both from online and offline channels. Keeping a tab on numbers in real-time and having the ability to understand the vital financial drivers are crucial for successful business operations. Here are the key performance indicators you can measure in this function:
- Store wise P&L
- LFL/Non_LFL P&L
- Cost analysis
- AR/AP analysis
- Sales and net profit analysis
- Cash flow drivers
- Negative growth, cash loss, and budget gap matrix
- Selling and promo expenses
A large part of retail cost structure includes human resources, despite the advancements in technology. Managing this cost is mandatory from the point of compliance as well as of efficiency and productivity. Human resources in retail require constant training and skill upgradation based on the kind of retail format the company operates in. To enable maximum output, these key metrics are at your fingertips for analysis:
- Staff force analysis
- Training hours and effectiveness analysis
- Overtime management
- Joiners/Leavers analysis
- Workforce performance analysis
- Compensation analysis
- Staff accommodation analysis
Omnichannel retailing involves integrating each touchpoint to offer the customer exactly what they
need, the moment they need it, anywhere they are and on any device. Nearly 75% of shoppers say
they use multiple channels to compare prices, hunt for discounts, or use in-store tablets to shop
online. Even more important, omnichannel customers spend 4% more on every shopping occasion
in-store, and 10% more online than single-channel customers.
Below are the key metrics that help track & improve the omnichannel effectiveness
- Order Conversion rate
- Traffic through each channel
- Key word effectiveness to drive channel traffic
- Visits Vs. Check-out ratio
- Impact of Promotion vouchers to improve sale
- Customer Returns through different channels
- Sales effectiveness in Free-Shipping or No-Cost EMIs
- Influence of Customer demographics
