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Yay’ it’s Friday!
Did you have a good week? By good we mean busy of course! We know that it’s almost the end of the day but, we had promised a post on metrics and we’re delivering on that promise now!
Whichever industry you’re in, KPI’s are always measured. You need to understand how well you’ve performed, right? It’s no different for retailers either and having the right metrics and KPI’s are essential for having that competitive edge. If you aren’t measuring it, you’re likely to miss a few key aspects of your business and will eventually lose out on opportunities.
It can be confusing at first to know which ones to measure so to help you get started we’ve put together a list of retail KPI’s and metrics to monitor your performance.
We begin with a few suggestions by SocialBakers
Social media metrics:
- Fan /Follower Growth: How many new fans are you gaining during a select time frame?
- Engagement rate: The number of users interactions (Likes, comments, mentions, re-tweets, replies and shares)
- Response rate: The percentage of user posts or questions that the administrator responded to
- Response time: The average amount of time it takes for the administrator to respond to user posts or questions
- User activity: Identifying the hours and days of the week your users are engaging most frequently
- Shareability: The number of shares and re-tweets a post gets
- Interactions: The number of interactions that a page or post receives and the types of interactions (likes, comments, re-tweets, replies and shares)
- Direct ROI for hits on the page- After posting content on your page or twitter profile, which includes a link to the product on your online store, pull analytics off your website to see if the consumer was on your social media page before coming to your website. Measure Post engagement rate, Shareability and interactions.
- ROI for in-store Transaction via social promotions- After a social promotion, track the sales increase of that particular product promotion. Measure post engagement rate, Shareability and interactions.
10. Conversion rate: How many people have you converted? Divide the number of visitors by the number of customers to understand the rate of conversion
11. Stock turn rate- Most retailers own 30% of excess inventory. You can reduce it by monitoring and improving upon your stock turn. Just divide the cost of goods sold during sales period by the inventory cost over the sales period multiplied by 365 days
12. Sell Through: It is very important when looking to replenish seasonal merchandise. Divide the quantity of goods sold during the sales period by the quantity sold during sales period+ on hand quantity on inventory date.
13. Gross Margin ROI- The overall performance indicator. Divide the profits during sales period by the inventory cost over sales period and multiply that by 365
In recent news however, a study of retailers within the internet retailers top 500 found that their web site performance improved significantly after using a system for managing software tags that were used to activate and measure online marketing campaigns.
Using tag management system and the right metrics, analysis can be done to gain insights that will be both qualitatively and quantitatively beneficial to you as a retailer.
We hope you found this useful as you begin setting Metrics for your retail business.
There are a good many more out there, and for more tips you could check Publitas for their metric suggestions.
Have a good Friday!
If you’re relaxing or thinking of content to create, remember to wear cozy fuzzy slippers. Always helps!