“By blending essential real-time operational data and customer knowledge, retailers can be in a better position to navigate business complexities,” said Sahir Anand, managing VP, research & principal analyst, EKN Research.
The three pillars to measure store performance are:
• Understanding Customer Path-to-Purchase – In the era of omni-channel shopping and multiple brand touchpoints, retailers are struggling to understand customer buying behaviors. Findings indicate nearly 50% of retailers are unable to predict shopper traffic. Real-time data combined with new key metrics related to in-store mobility, promotional effectiveness, conversion rates and shopper behavior enable retailers to deliver a more seamless, personalized customer experience and increase sales conversions.
• Ensuring Inventory Accuracy and Availability – EKN reported only 40% of retailers consistently manage inventory performance and turnover metrics at the store level. Inventory is the foundation for retail regardless of channel and having accurate availability and access is crucial to success. Some of the new KPIs for scoring the ROI of store inventory include available to promise (ATP), merchandise effectiveness and inventory turn, and order fulfilment cost and cycle time.
• Enabling Store Execution Through Empowered Associates – Employee engagement and optimum labor hour utilization are effective tools for driving consistent execution and customer satisfaction. However, research indicates that retailers spend 70% of their labor hours dealing with operational tasks, and only 30% on customer service. Some new actionable KPIs that are effective in understanding operational and shopper satisfaction issues, and the most effective allocation of associate time.
“As store processes and technologies continue to evolve, retailers can address gaps within store metrics, KPIs and related performance improvement processes that affect associates and customers every day,” said Tony D’Onofrio, chief customer officer, Tyco Retail Solutions.
A New Store Excellence Scorecard is the final e-book in a three-part series. The first and second e-books, Customer Buying Journey and Inventory Optimization & Fulfillment, are currently available to view online.