| Retail Performance Methodology is based on | | | | system will guide them as to which KPI to |
| key principles adopted and tailored by | | | | focus on first. Because being able to |
| retailers to gain competitive advantage and | | | | identify and then focus on the most |
| improve sales performance. | | | | undersupplied KPI yields the greatest and |
| | | | quickest increase in each Salesperson's |
| The basic principles of a successful Retail | | | | performance. |
| Performance Management Model will: | | | | |
| | | | Retail Performance System Adoption Ideals |
| 1. Instill a customer focused, sales oriented | | | | |
| culture throughout the organization | | | | Keep the following ideals in mind when |
| | | | implementing a Retail Performance Model. You |
| 2. Introduce a methodology for setting | | | | must be able to: |
| standards, tracking, measuring and reporting | | | | |
| results, identifying under performance and | | | | ROSTER within set company wage budget |
| coaching for success | | | | parameters. Managers must be able to see how |
| | | | much is left to spend as they add Salespeople |
| 3. Bridge the gap between common sense and | | | | to the Roster. |
| common practice | | | | |
| | | | GENERATE SALES TARGETS by individual by day & |
| Create a World Class Retail environment where | | | | by store by week. Managers must be able to |
| it easier for your people to succeed than to | | | | show each Salesperson how much they expect |
| fail | | | | them to make in sales for the day(s) they |
| | | | work this enables Salespeople the play the |
| 4. Drive compliance with World Class Retail | | | | game' while Store Manager's keep score. Would |
| standards and practices. | | | | playing sport be as interesting if no one was |
| | | | keeping score? |
| Retailers' performance solutions include a | | | | |
| dynamic blend of different consulting styles, | | | | MEASURE individual sales performance compared |
| training philosophies, coaching and | | | | to everyone on the shift. Managers must be |
| mentoring. They provide customers with a | | | | able to track #Sales; #Transactions; #Items |
| proven methodology for driving retail success | | | | Sale - versus Time Worked for each person |
| and the skills, knowledge and understanding | | | | compared to the Store Average. |
| to make it work, creating significant and | | | | |
| sustainable increases in sales. | | | | INSTANTLY IDENTIFY the most undersupplied or |
| | | | deficient individual selling skills and |
| Knowledge Driven Success | | | | trends for each Salesperson. Managers must be |
| | | | able to view individual KPIs compared to the |
| Key to retail performance is the ability to | | | | shift & store that identify individual |
| measure actual versus planned individual | | | | coaching needs. Knowing what is wrong means |
| sales and coach on undersupplied statistics. | | | | knowing what to fix. |
| Retailers must be able to define Key | | | | |
| Performance Indicators or KPIs, set targets, | | | | TARGETED COACHING on the selling skill |
| and measure the performance of individuals, | | | | delivering the greatest value. Managers |
| stores and areas within the business. | | | | should be able to view integrated, on-demand, |
| | | | coaching tips and advice about improving |
| The Retail Performance System should provide | | | | deficient selling skills and individual sales |
| relevant reports at all levels of the | | | | performance. Know exactly what to show a |
| company, highlighting areas of poor | | | | Salesperson yields the best results. |
| performance, recommending the specific | | | | |
| actions required to improve sales and reduce | | | | Which KPIs are Tracked in the Ideal Retail |
| wages. With the correct information, managers | | | | Performance Management System? |
| are able to take quick and decisive action | | | | |
| that results in a more responsive business | | | | An ideal Retail Performance Management System |
| and improved results. | | | | must track five (5) Store and Individual |
| | | | Staff KPIs: |
| Retail Coaching KPI Measurement Methodology | | | | |
| | | | 1. Sales per Hour - the fiscal value of the |
| Retail performance measurements must be | | | | individual's and stores hourly sales. |
| broken down into two main categories to be | | | | |
| effective at identifying specific areas of | | | | 2. Items Per Sale - the number of items sold |
| poor performance: Wages and Sales. These are | | | | by individual compared to the store average. |
| the only two areas of expense and income | | | | |
| within a Store Manager's control. Expenses | | | | 3. Average Sale the average fiscal value of |
| such as stocking, rent, electricity, | | | | each individual sale compared to the store |
| marketing etc, are managed by Middle and | | | | average. |
| Senior Management not by Store Managers or | | | | |
| Salespeople. Thus the solution to improving | | | | 4. Conversion Rate - the number of walk-ins |
| sales performance will focus on identifying | | | | that can be converted to sales. |
| only those critical factors that can be | | | | |
| influenced by people working in the store. | | | | 5. Sales per Wages Spent the fiscal |
| | | | contribution each salesperson makes, or how |
| Controlling Retail Staff Wages | | | | much is spent on wages compared to how much |
| | | | they sold. |
| A Staff Roster System must be employed to | | | | |
| empower your front-line Store Managers to do | | | | Tracking KPIs at a store level alone without |
| weekly Staff Rosters within the framework of | | | | being able to compare them on an individual |
| the company's strict wage budgets. Rostering | | | | level is futile. Unless each Salesperson can |
| within budgets is an opportunity to reduce | | | | be shown how well they performed in relation |
| operational expenditure an expense within | | | | to everyone else it is impossible to know |
| the control of the Store Manager. | | | | their own area of weakness or strength. |
| | | | |
| Using spreadsheets to manage time is useful. | | | | Summary |
| But being able to see how much money you | | | | |
| actually have left to spend on wages as you | | | | An ideal Retail Performance Sales Performance |
| add people to the Roster is much better. It | | | | Management System must: |
| helps Store Managers assign hours when they | | | | |
| are needed so they can Roster within payroll | | | | 1. Focus on the two areas within the Store |
| budgets. | | | | Managers control: Wages and Individual Sales |
| | | | Performance. |
| Retail Sales Performance KPI Reporting and | | | | |
| Coaching | | | | 2. Offer a Rostering Solution for controlling |
| | | | wages and identifying your best Salespeople. |
| The Retail Sales Management Reporting | | | | |
| component of any system should make all | | | | 3. Give feedback via a Reports Dashboard |
| individual Salespeople accountable for their | | | | about the Individual Sales Performance of |
| time, by setting them individual sales | | | | each staff member compared to the Store |
| targets by shift within an overall weekly | | | | Average so as to identify the most deficient |
| sales target framework and measuring and | | | | selling skills of each person. |
| analysing their performance according to five | | | | |
| (5) key KPIs. | | | | 4. Integrate coaching behavior tips and |
| | | | advice so that Managers can instantly be |
| With this information, Managers can target | | | | enlightened as to what to coach each |
| individual Salesperson's weaknesses as their | | | | individual Salesperson. |