As retail business owners or managers, one important question that keeps us awake at night is: how well in my business doing?
How then do we get a clear picture of our business performance and sharpen our competitive edge armed with correct insights?
There are obviously tons of data and information at the disposal of retail business owners and managers covering revenue and profit, sales per square foot, sales per hour, inventory data, and more. With huge data surrounding your business, how do you know which ones to track and take action on?
That’s where your Key Performance Indicators (KPIs) come in. KPIs are the most important metrics in your business. They help you answer difficult questions so you can measure the health of your retail business and determine the next steps for your business growth, profitability and sustainability.
KPIs are numbers that you must regularly monitor so you can determine if your business is on the right track. Since every business is different, KPIs may vary from one business type to another. But in the retail industry, we’ve found the following KPIs to be the most significant.
Your store is awesome in its own unique way, so what’s “key” for one retailer may not necessarily be significant for you. When it comes to data, more doesn’t always mean better.
Before you start analyzing every metric here, look into the state of your business first, and determine which data points would make the most impact and which KPIs will help you measure your way to the top.
So which KPI or KPIs should you start tracking, tweaking, and improving to achieve your business objectives and great success?
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