Effective Retail Performance Management System  – A Tool to Improve Staff Performance and Boost Sales and Profits


In today’s dynamic and challenging retail environment retailers are trying hard to defeat cut-throat competition and retain customers especially as online shopping has become a prevalent trend.  To improve operational efficiency, building customer loyalty and boosting profits, in retail stores, the performance of retail employees play a significant role.

For instance, dealing with the new customers that have become very powerful and demanding, with expectations for better services and excellent customer experience are escalating with each passing day requires retailers making offering great shopping experience to the customer a top priority. In this regard, a retail business owner, leader and manager’s goal is to build a team of highly motivated, engaged and productive employees who can ensure that customers have satisfying experience which in turn would guarantee repeat purchases, loyalty, retention and positive advocacy. This is a guaranteed winning strategy for improving sales revenue and profit.

However, managing and improving performance of employees is a common challenge for retail business owners, leaders and managers. Clarifying job responsibilities and expectations, aligning their goals with the business priorities, developing talent to offer exceptional customer service, and keeping them motivated to increase business profits are some other issues that the managers face every day. Retail business owners, leaders and managers need effective strategies for improving employees’ performance, the sales revenue and profit.

The answer lies in putting in place an effective Performance Management System – A Tool to Improve Staff Performance and Boost Sales and profits.


Effective Retail Performance Management System
– A Tool to Improve Staff Performance and Boost Sales and Profits.

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An effective retail performance management process aims at building high-performing workforce that can offer better customer service and improve overall business performance. The system can help retailers to overcome performance gaps, develop skills, maximize employee productivity, and boost store sales.

It is essential therefore to have a systematic performance management process for employees to achieve business goals and sustain for long run in the market

Today, many retailers are establishing ‘Performance Culture’ incorporated with strategies to develop individuals’ and supporting their contribution towards organizational objectives.


Here are 4 ways retailers can increase store performance:




  1. Proper Definition of Employees’ Roles

Employees often face difficulty in justifying their performance during evaluations due to unclear performance goals,

Clarity on performance goals, responsibilities and priorities give employees a definition of success, and increase their productivity by at least 50%.

For instance, if a sales person in the retail store spends majority of his work hours in filling out reports and complying with procedures, he gets less time to spend on customer concerns. But if the priorities are set right (good customer experience being one of his goals), he could possibly get more time each day to work with customers rather than completing store operations.


  1. Optimize Employee Performance

Whether it is an operational efficiency or a sales problem, retail business owners, leaders and managers often face challenges in identifying performance issues in real-time.

Absence of data and reports on employee performance and behaviour leads to multiple issues – low employee engagement, low customer engagement, poor sales and profits etc. Poor employees’ optimisation remains the root cause of overall low business performance

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With a well-structured performance evaluation process, retail business owners, leaders and managers can document performance of employees and help them take corrective actions quickly.


  1. Develop Skills

A study by Business Training Experts showed that companies with comprehensive employee training see a 218% higher revenue per employee.

Identify employees’ areas of improvement and develop their skills continually by providing skill development opportunities.

Investing in employee development is as important as having the right talent on-board. This can be a driving factor and motivation for employees’ career growth with your organisation.


  1. Maximize Strengths

Retail business owners, leaders and managers often make sales as a major parameter for employee performance evaluation, and customer experience remains underestimated. However, any retail business owner, leader and manager who continue to sustain this practice in today’ competitive retail environment does so at his or her peril! This is because customer experience is today’s new retail currency. Your success and continued existence depends on it.

Winning retail business owners, leaders and managers must value Sales and Customer Experience equally. They must conduct customer surveys and gain insight into customer expectations.

An ideal performance review process must have multiple parameters for evaluation, including employee skills, behaviour, strengths, weaknesses and more.

Allow multiple stakeholders (peers, customers, supervisors and other people involved in immediate work circle) to provide feedback on an employees’ performance, behaviour and skills. A well-rounded view on employees’ performance helps in making informed decisions during their evaluations and promotions.


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