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