Commercial efficiency as an indicator in physical retail
Many retailers are not aware of what really happens in their stores, and, many of them often only use the total volume of sales to determine the success of their businesses: if the amount of earned money at the end of the day is higher than that of yesterday, then the store is working well.
But, are we really sure that total sales represent a reliable indicator for measuring commercial efficiency?
Knowing the total sales volume just gives us an indicator, the economic one. But there is a fundamental difference between the result of total sales and commercial efficiency: in fact, to truly understand the progress of a store, it is necessary to know other performance indicators.
- Measure the success of a store from its commercial efficiency
Measuring the performance of a store simply by referring to its total collection can be misleading: it reflects a partial vision, for example, on the level of effectiveness of store staff, marketing operations or the suitability of a location to open a point sale.
To correctly analyze the commercial efficiency of a store, you must answer the following questions:
- How many potential customers enter the stores every day?
- How many people visit the store every day?
- Do you increase the number of people entering thanks to the last marketing campaign?
- How did your customers react to the change of layout in the store?
- Is the store staff equally efficient at every point of sale?
- How many customers leave the shop empty handed
- Indicators to measure the commercial efficiency of a store
The attraction and conversion rate are two indicators that allow to effectively measure the results of the store, indicating precisely the strengths and weaknesses of each store.
The average stay time or the repetition rate of the visits allow to know in a more concrete way the consumer behavior and what are the areas for improvement, store by store.
TC Analytics is a complete and easy-to-use dashboard, with which you can see the commercial efficiency of each of your stores and quickly find out what the areas of improvement of each store are.