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