Retail Metrics & KPIs to help you stay competitive.

retail kpi1Retail Metrics & KPIs to help you stay competitive.

In the fast paced world of retail having the right metrics and KPIs is essential for staying competitive. If you aren’t measuring it, you are likely missing key facts about your business and are losing out on important opportunities. Retail KPIs keep your business performance in perspective so that when you need to make a business decision, you have the right information to make sure your decisions improve the performance and profitability of your business.

To help get you started, we’ve put together a list of the top 10 retail KPIs and metrics our customers use to monitor their performance.

Sales metrics and KPIs.

 sales kpi1Sales metrics and KPIs. 

In today’s ultra competitive business landscape, it’s essential that your sales team has an objective view of their performance. The days of relying on “gut feel” are long gone, and maintaining a competitive edge is about cultivating a data driven culture. At the center of that culture is the need to monitor relevant and actionable sales KPIs and metrics.

Knowing which KPIs are important for your sales team can be difficult, which is why we’ve put together this list of KPIs. Check out the top 10 sales KPIs and metrics our customers use.

7 Key Performance Indicators That Every Sales Manager Should Use

KPI sales

KPI sales

7 Key Performance Indicators That Every Sales Manager Should Use

William Tyree is CMO of RingDNA

Conventional wisdom holds that revenue-per-sales-rep is the only metric that ultimately matters in sales management. But sales process optimization is all about identifying key strengths and coalescing your team into an efficient selling machine. In other words, management is about coaching your team to success.

When we talk about Key Performance Indicators (KPIs), we’re talking about leading indicators – signposts along the way that your sales team is doing the things they need to do in order to be successful. Keeping your eye on nuanced, tactical KPIs is one of the best ways to keep your strategy on track. Practicing great fundamentals leads to great outcomes.

Lead Response Time [Read more…]

The Professional Buyer’s Primary KPIs

The Professional Buyer’s Primary KPIs

Lets examine the dials to answer these questions, focusing first on the 4 primary KPIs on the top half of the dashboard.

Dial 1. Savings Achieved

It is obvious that managers are going to be focused on savings realized. However promised or reported savings are subject to heightened scrutiny in may organisations. Managers themselves know that savings promised and savings realized are two different things.

There are many variables involved here, but the top 3 are: [Read more…]

Difference Between Accuracy and Precision by Farhana synthi

KPIAccuracy:

The accuracy is the comparison between measurement and the true or most probable value. The comparison is done with regard to the error i.e. the accuracy is inversely proportional to the error. Accuracy is a general concept and it expresses the correctness of a measurement. Only single measurement provide accurate result. Accuracy can be determined by absolute method & comparative method.

Precision: [Read more…]

Process Capability Applications in ISO 13485 Following ISO/TR 10017 – Webinar By GlobalCompliancePanel by Dan OLeary

 

cpkwebYou can improve the implementation and effectiveness of your Quality Management System (QMS) by using statistical techniques. The techniques are broadly applicable across the QMS. ISO provides a technical report that explains a number of statistical techniques. The report also lists the QMS where the specific techniques apply.

Why you should attend: Process Capability Analysis (PCA) is a powerful tool used to describe, troubleshoot, and improve (Quality Management System) QMS processes. This webinar will help you understand the concepts of PCA and show you applications in your QMS.

Your Quality Management System (QMS) should be able to address these questions quickly and easily. If not, then your team needs to attend this webinar!

* Do you report process capability indices at your Management Review?
* Do you use PCA and capability indices to help you identify and prioritize improvement activities?
* Have you validated processes and improved them to ensure a Cpk? 1.33?
* Do you use PCA to help evaluate your suppliers and the product and services they provide? [Read more…]

Determining between a PPK and CCK Business Process by Laurence Solis

TolAnalyse07If you are a team leader or manager in a business organization, one must be able to determine the structure of an Organizational Development. An Organizational Development (OD) is a theoretical, organization-wide effort that aims to promote an organization’s effectiveness and capability. A term referred to as Process Improvement is categorized under this sector. Actions involved are aimed at improving a business process through identifying problems and analyzing solutions. The primary aim of this process is to evaluate the current goals and objectives of an organization.

With your goal in Process Improvement, among the things that you need to learn is understanding the difference between PPK and CCK. Let’s start by defining what PPK is.

* Search for a dependable source to help you start boosting your business processes by setting up a PPK Business model.

[Read more…]

Data, Variation and Process Capability of Six Sigma by Jamesmiller

Cp-Cpk-formulasThis chapter is a detailed discussion of the basics of data, variation and Statistical Control. You will learn here how to understand a distribution graph, Understand what process capability is and to enumerate the various methods and indices used to calculate the process capability.

Data Facts – Basic nature of data

Two kinds of data are normally found in any organization:

1. Continuous Data

Data which can be measured and which characterizes a product or some process features in terms of its size, weight and volts. This type of data is said to be continuous by nature. In other words, the measurement scale can be meaningfully divided into finer and finer increments using the concept of least count.

2. Discrete Data [Read more…]

KPI ToolBox – learn how to design, fill with data and use Key Performance Indicators by Sam Miller

KPI term is for key performance indicators, the KPI concept is about
measuring and controlling business performance focusing on the most important
performance indicators. Does this concept works? How to make use of it?

 

There might be a number of viewpoints on KPI, and this concept can be used on
various level of organization. For instance, CEO might use KPI to measure and
control business, also, some managers can design and use KPI for their
department.

 

Does KPI approach work? Yes, in sense, it gives you a necessary information
structured and represented in a certain way, but how good does it work? It
depends on who have designed your KPI, who is gathering data to be inputted in
KPI system, how do you analyze and use this data. [Read more…]

What is a KPI? by Kevin Dwyer

A Key Performance Indicator (KPI) is neither a Goal, nor a Key Result Area (KRA), nor a Target, nor a Result nor a Critical Success Factor. And yet these terms are often used interchangeably with a KPI.

A KPI defines itself, to a large extent, by its name; it is a performance indicator, i.e. the performance of the process it is measuring should be clearly indicated by the KPI.

This should clarify that the purpose of a KPI is not, for example, to measure the risk of a process, nor its age, nor its length, but its performance.

Further, a KPI should be key, not just any casual measure of a process (or a business as a whole); this can be taken as the KPI being closely correlated with the objectives of the process being measured.

An important and often overlooked aspect of a KPI not contained within its name is that it measures a continuous or discrete but repeated process.

Typical continuous processes include manufacture (toothpaste production, widget manufacture) and service where the dimensions are large (credit management for large public utilities, help desk for large IT installations).

Sometimes services which look to be custom when considered at an individual level (your neighbour’s knee surgery operation) can also be considered as almost continuous when considered at a coarse enough level of granularity (knee surgery in Australia in the ’90s).

Typical discrete, repetitive processes include service (PC installation, car sales and hotel check-in).

All of this ought to be self-evident, but it is common to see. For example, Target Completion Dates or Product Specifications (or both) labelled as KPIs.

Where the intention is to measure once-off performance of a project, or as part of a business plan, a specification or target date (or both) will suffice; labelling it a KPI is both unnecessary and confusing.

Moreover, developing only one off measures as a proxy for real KPIs puts a business at risk.

The implication of using one off performance measures in lieu of key performance indicators is that many organisations do not know how well they are performing. That is, until, a significant universal lagging KPI such as profitability or lost time injury frequency ratio reaches unacceptable levels.

Lag, Current and Lead

Timing of KPIs, relative to achievement of corporate goals, is fundamental in choosing good candidate KPIs. Financial results, such as last quarter’s revenue, are typically lagged by 2+ months. Annual results, especially fiscal year results, can be much more delayed.

With such lags, the problem arises as to what action might be appropriate to alter the direction of the department’s performance, when the KPIs are measuring results in the past.

A correction may be inappropriate when the current performance has already significantly altered from that measured some time ago and may result in overcorrection.

Lag indicators should rarely be considered as a KPI as the benefit of KPI is to adjust processes and behaviour to get better performance.

KPIs measuring current performance are more useful. Examples include today’s bookings, sales or production level. As always, care must be taken not to allow instant results to result in instant reactions which, in turn, reinforce the original problem.

Other KPIs are of the leading type; their measures are predictive of desired results at the next higher level.

An example of such a leading indicator for market share is customer satisfaction with the organisation’s products and service. It is important to note though, that customer satisfaction survey output is a lagging indicator of customer service.

The primary difficulty with leading KPIs is to be sure that they are strongly correlated with the required corporate goals; modelling and understanding of key business drivers is necessary.

The corollary, of course, is that taking the time and effort to determine the key business drivers will result in a useful KPI rather than a number which is reported on monthly but caused no action to happen even when it strays outside its range of limits.

More than the nature and the design, a KPI must be understood by all staff. Further, all staff must know the corrective action to be applied. The corrective action must impact the KPI.

For example, completing plant production runs to schedule for a manufacturing plant impacts lead time which impacts stock levels, purchasing levels, in-full delivery, employee satisfaction and customer satisfaction. The deviation from production schedule of production is a leading indicator of a wide range of performance indicators.

Understanding that deviation from production schedule is key enables all people in the plant to apply corrective action to keep to the schedule. The resultant improvement in lead time improves many other dependent indicators including productivity.

Choosing an indicator like productivity as key only has an impact on costs and few people would understand what to do other than work faster or spend capital on automation.

KPIs in most organisations are actually targets, key project dates, key result areas or tasks. As a result, performance is not actually managed.

Having well thought through KPIs and acting on them with the confidence that action will cause a change in performance is well worth the investment in time and corporate brain-power it takes to develop, select and test Key Performance Indicators.

About the Author

Kevin Dwyer is the founder of Change Factory. Change Factory helps organisations who do do not like their business outcomes to get better outcomes by changing people’s behaviour. Businesses we help have greater clarity of purpose and ability to achieve their desired business outcomes. To learn more or see more articles visithttp://www.changefactory.com.au or email kevin.dwyer@changefactory.com.au ©2006 Change Factory

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