KPI: why are they so important to succeed in retail?
Retail Intelligence technologies are able to gather qualitative information about consumers: how many people walk in front of a shop, how many people enter in it, how much time they stayed and at what time.
To value whether a store’s management is profitable, it’s necessary to study certain key performance indicators, a set of specific parameters that each store can use to quantify achievements. These “smart data” are essential for making strategic decisions for the business and optimizing sales.
When examining the results of a store, it is important to focus on this five points:
- Total amount of sales per hour
- Total amount of sales per customer
- Total average sales made for each staff member
- Total sales value per m²
- Value of the average ticket: this is the average sales value per customer in the store, and is obtained by dividing the sales by the number of tickets issued.
These indispensable informations only provide us with data regarding the closing of sales, which are the results obtained from the numerous strategies implemented. These data are able to establish the achievement of the goal and assume, with a good level of certainty, what the future of the company will be.
By studying the behavior of pedestrian traffic we can dramatically improve the profitability of the store, entering in possession of fundamental information so that the different departments of the company can deal with all the needs and make strategic decisions that directly affect the business.