Self-diagnostic: is your store profitable?
Are you the owner of a store and you want to know if your business is going as planned? Do you want to know the results of the management and the outcomes of your strategy?
If so, the time has come to take a small test and self-analyse your own business, to find out if it is working as it should, to be able to direct your next future actions. Should we start with the questions?
Did you do the SWOT analysis of your business?
The famous SWOT analysis (Strenghts, Weakness, Opportunities & Threats) is necessary to know what are the strengths and weaknesses of our personal business, and to identify the existing opportunities and threats internally (brand image, store layout, social networks’ management and online presence, customer satisfaction, stock status, warehouse organization…) and external (competitor analysis, purchasing power, location…).
Once you have answered all the questions and identified strengths and weaknesses, you will be much more aware of the progress of your business and it will be easier for you to study targeted strategies.
Do you know the basic KPIs for your store?
In online commerce, it is much easier to know the customer’s purchasing process, thanks to data analysis (clicks, navigation times, personal data, etc.). To shorten this distance, it is crucial for retailers to bet on technologies that can provide the analysis of the same KPIs (Key Performance Indicators) of online commerce, but obtained from the physical store. Do you know how customers have found your store? How many of the people who came in today end up buying something? Do they come back after the first purchase? How often do they buy?
What do you sell? What do you offer your customers? Is there any added value?
Obviously you know your product very well, but what is its surplus value? What news does it bring to your customers? What makes your brand unique and your product essential? What defines your business mission? What are the values you want to communicate to your audience?
If these points are clear, customers will choose your store because, through their purchase, they are buying a lifestyle that they share: yours.
Do you know your potential customers?
Attracting people to widen your target is not an easy thing: a good location on a shopping street is essential, as well as knowing the pedestrian flow outside your store and, of course, having attractive windows shops. This last point is very important: in fact, your best sales representative is your final customer. Also remember that nowadays it is necessary to win the attention of your customers against an unbeaten competitor: the smartphone! The goal is to make your business more attractive than any digital campaign, and then measure the impact it has had on your customers: have visits increased? And your visibility as a brand? In conclusion, have customers and sales increased?
Do your revenues offset the inversion?
Costs of store staff, rent, suppliers, stocks, products…do you have everything under control? Surely it is very important to know the profit margins, but trying to save money by cutting expenses without calculating the impact that this will have on the added value we provide to the customer, is not a smart move. It is necessary to calculate how certain investments can bring us long-term results: if I reduce the store staff, will I be able to serve all my clients without losing their trust? If I decide to change my location to save money on rent, will I lose my old customers? Will the new road be used commercially? Is it necessary to reverse in advertising or an online integration? Is it possible to rethink the business model to make it more profitable?
Do you know what activities you need to do daily, monthly and annually in your store?
Suppliers, customers, activities … in a shop, there’s always something to do. In addition to commercial management and sales, there are issues of marketing, accounting, web maintenance, surveillance, training, human resources…do you know all the key activities for your business? Do you have enough time to devote to everything? Do you prioritize problems based on their importance? Do you have everything under control?
What is your level of omnichannel?
The retail sector is changing: it is now very clear that, to function properly, brands must sell in the same way online as offline. The trade must be circular, the purchase easier and the path multi-channel: it is necessary to be able to reach the product through any existing device.
The omnichannel term is generally used to identify the experiences of multipath buying, through the various touch-points used by the company (physical store, e-commerce or APP). Making the difference in this area means the integration of channels and interactions: those who manage to reorganize the internal infrastructure and adapt it to this new vision, are able to optimize strategies and economic resources, because they are able to analyze and read the data and, therefore, make useful decisions and invest human and economic resources in an optimal manner.