Customer experience is crucial in today’s market. Individuals are looking for a memorable experience – online and offline – more than just the brand’s new products/services. Measuring the performance of the business is no longer limited to only profit and loss. The way to success is to keep real-life events running smoothly in real-time and adjusting strategies regularly. KPIs or “key performance indicators” are the most vital metrics in business. KPIs enable firms to determine if the company is on the right track. Analyzing metrics is even more critical during COVID-19 to adapt to the new normal people follow.

Outmarch is a comprehensive software that enables businesses to measure the metrics easily. With Artificial Intelligence and Machine Learning, retail task management, store checklists and audits, retail ticket management, and many more features, retail businesses can track and analyze business with easy clicks using Outmarch.

Here are the most important metrics a retail business should be looking to measure the retail operations:


1. Brand Awareness and Consistency:

Businesses need to gauge the number of customers aware of the brand. The formula is straight – the more popular a business is, the more the customers and thus the revenue. A customer would engage with the brand only if he/she is aware of it. It is vital to promote the brand consistently across all the stores because a customer specifically expects the same services and quality throughout. Running a daily checklist ensures that nothing is missing out, and all the stores show the same consistency. Mystery audits or mystery shopping helps a retail business to determine if the business is running smoothly and if the overall experience is delightful and up to the mark.

2. Measure Sales: 

Another important metric is to measure the sales of the retail business. Measuring sales help to direct the team’s focus, identify problems, and allow the team to improve. There are multiple ways of measuring sales, such as sales by category, sales by section, sales per employee, sales per associate, and more. Sales by category determine the amount of revenue generated for an individual product category. It gives an idea on the revenue categories generating the most revenue for your business. Sales per employee is a metric calculated by the mathematical formula net sales/number of employees. Sales per employee metric enables businesses to make better employment decisions, especially in hiring, compensation, and rostering. It can be improved by setting smart sales goals per employee, motivating the staff for better performance, and investing in training. 

3. Promotion Effectiveness:

Promotion is an excellent way to attract customers. However, it is essential to track all the promotions and measure their effectiveness. The promotion should be engaging, and every employee should be on the same page to market a promotion better. If the promotion is not working well, corrective measures should be immediately taken to ensure the promotion is a success. This is possible by gathering real-time data. Further, the data collected from the promotion should be used for the next up-coming promotions for better reach, and likewise, the older data should be used for the current promotions to avoid repeating the same mistakes. 

4. Customer Engagement and Loyalty:

 Retail businesses should track the purpose of the customers’ visits and try engaging them and follow them relating to the same purpose. For instance, if the retail business is about furniture or diamonds, the customer may make multiple visits to the store to decide. Try to keep them engaged by sending them relevant information and at the same time, not be pushy. A retail store may get many visitors, but it is crucial to know how many out of that turns in to retail customers. The mathematical formula for the retail conversion rate is the number of retail transactions/number of visitors. Specialty stores and luxury boutiques have a lower conversion rate. Also known as effectivity, this metric depends mainly on the type of retail business. 

5. Stock turn/Inventory Turnover:

The metric relates to the number of times stock is sold or used. The mathematical formula is the cost of goods sold/average inventory. A critical metric, the stock turn, determines the optimal inventory levels. Lower levels indicate dead stock, whereas higher levels indicate fewer stocks and unsatisfied customers due to the “out of stock” issues. If a product is not selling fast, piling up the inventory does not help and may lead to product loss due to damage or expiry date (food products). On the other hand, keeping limited stock shows a lack of coordination resulting in unhappy customers, who would probably buy other alternatives.  

6. Shrinkage:

Shrinkage relates to a loss of inventory not caused by actual sales but by other factors such as robbery, administrative errors, or frauds. The mathematical formula for calculating shrinkage is ending inventory value – physically counted inventory value. Tracking shrinkage helps businesses remain vigilant. If the shrinkage is witnessed, the business needs to take up security measures or address its issues. 

You can measure the above key performance indicators by using Outmarch platform. Outmarch plans and executes retail processes, audits, and takes charge of day-to-day retail tasks seamlessly. With the smart AI analytics and real-time feedback, retail businesses can measure operations effectiveness. Run your store intelligently by using Outmarch. 

Find out how to implement Outmarch and achieve better control of all your retail stores by connecting with us today!