Study Flashcards
What does KPI stand for?
Key Performance Indicators
What is a KPI?
a metric used to measure performance
What are KPI’s based on?
the outcome they want to achieve or their strategic goals
What should every KPI have?
- specific purpose
- quantiviley or qualitivily measurable
- realistic goal
- relevant to store direction
- measured with specific time frame
Customer Conversion Rate(%) definition
Measures the proportion of visitors to a retail outlet who make a purchase. If 300 people visit your store in a day, but only 75 buy something, the conversion rate is 25 percent.
Units Per Transaction (UPT) definition
Is a sales metric often used in the retail sales sector to measure the average number of items that customers are purchasing in any given transaction.
Average Dollar Sale (ADS) definition
Average sale shows you when they do help a customer, how much - on average - a customer purchases from them.
Total Volume of Sales definition
Measures the amount of sales performed over a period of time, or across locations including physical stores and online transactions. That way, you can see where and when demand is higher or lower, and try to understand why. It also helps gauge the dynamic of your business and create projections for future.
Rate of Return definition
Returns are costly because they need to be processed again, or because they are lost due to a defect. This is why it is important for you to track not only the amount of returns your retail store has over a certain time, but also the reason why.
Customer Retention (CRM)
After putting efforts into acquiring new customers, a company has to put even more in their retention, and develop in the long term a certain brand loyalty. Customer retention measures the capacity of your retail business to generate a recurring revenue from your already existing clients’ database. A retail metric like this one varies greatly according to the nature of your business.
GM code for:
General Manager
AGM code for:
Assistant General Manager
SM code for:
Store Manager
-“equivalent to general manager in low-mid luxury retail.”
ASM code for:
Assistant Store Manager
FY code for:
Fiscal year
