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Smart Retailers Dramatically Improve Sales Performance Using Key Performance Indicators (kpis)
By Steven Lipschitz
Retail Performance Methodology is based on key principles adopted and tailored by retailers to gain competitive advantage and improve sales performance.
The basic principles of a successful Retail Performance Management Model will:
1. Instill a customer focused, sales oriented culture throughout the organization
2. Introduce a methodology for setting standards, tracking, measuring and reporting results, identifying under performance and coaching for success
3. Bridge the gap between common sense and common practice
Create a World Class Retail environment where it easier for your people to succeed than to fail
4. Drive compliance with World Class Retail standards and practices.
Retailers' performance solutions include a dynamic blend of different consulting styles, training philosophies, coaching and mentoring. They provide customers with a proven methodology for driving retail success and the skills, knowledge and understanding to make it work, creating significant and sustainable increases in sales.
Knowledge Driven Success
Key to retail performance is the ability to measure actual versus planned individual sales and coach on undersupplied statistics. Retailers must be able to define Key Performance Indicators or KPIs, set targets, and measure the performance of individuals, stores and areas within the business.
The Retail Performance System should provide relevant reports at all levels of the company, highlighting areas of poor performance, recommending the specific actions required to improve sales and reduce wages. With the correct information, managers are able to take quick and decisive action that results in a more responsive business and improved results.
Retail Coaching KPI Measurement Methodology
Retail performance measurements must be broken down into two main categories to be effective at identifying specific areas of poor performance: Wages and Sales. These are the only two areas of expense and income within a Store Manager's control. Expenses such as stocking, rent, electricity, marketing etc, are managed by Middle and Senior Management not by Store Managers or Salespeople. Thus the solution to improving sales performance will focus on identifying only those critical factors that can be influenced by people working in the store.
Controlling Retail Staff Wages
A Staff Roster System must be employed to empower your front-line Store Managers to do weekly Staff Rosters within the framework of the company's strict wage budgets. Rostering within budgets is an opportunity to reduce operational expenditure – an expense within the control of the Store Manager.
Using spreadsheets to manage time is useful. But being able to see how much money you actually have left to spend on wages as you add people to the Roster is much better.
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It helps Store Managers assign hours when they are needed so they can Roster within payroll budgets. Retail Sales Performance KPI Reporting and Coaching The Retail Sales Management Reporting component of any system should make “all individual Salespeople accountable for their time”, by setting them individual sales targets by shift within an overall weekly sales target framework and measuring and analysing their performance according to five (5) key KPIs. With this information, Managers can target individual Salesperson's weaknesses as their system will guide them as to which KPI to focus on first. Because being able to identify and then focus on the most undersupplied KPI yields the greatest and quickest increase in each Salesperson's performance. Retail Performance System Adoption Ideals Keep the following ideals in mind when implementing a Retail Performance Model. You must be able to: ROSTER within set company wage budget parameters. Managers must be able to see how much is left to spend as they add Salespeople to the Roster. GENERATE SALES TARGETS by individual by day & by store by week. Managers must be able to show each Salesperson how much they expect them to make in sales for the day(s) they work – this enables Salespeople the ‘play the game' while Store Manager's keep score. Would playing sport be as interesting if no one was keeping score? MEASURE individual sales performance compared to everyone on the shift. Managers must be able to track #Sales; #Transactions; #Items/Sale - versus Time Worked for each person compared to the Store Average. INSTANTLY IDENTIFY the most undersupplied or deficient individual selling skills and trends for each Salesperson. Managers must be able to view individual KPIs compared to the shift & store that identify individual coaching needs. Knowing what is wrong means knowing what to fix. TARGETED COACHING on the selling skill delivering the greatest value. Managers should be able to view integrated, on-demand, coaching tips and advice about improving deficient selling skills and individual sales performance. Know exactly what to show a Salesperson yields the best results. Which KPIs are Tracked in the Ideal Retail Performance Management System? An ideal Retail Performance Management System must track five (5) Store and Individual Staff KPIs: 1. Sales per Hour - the fiscal value of the individual's and stores hourly sales. 2. Items Per Sale - the number of items sold by individual compared to the store average. 3. Average Sale – the average fiscal value of each individual sale compared to the store average. 4. Conversion Rate - the number of walk-ins that can be converted to sales. 5. Sales per Wages Spent – the fiscal contribution each salesperson makes, or how much is spent on wages compared to how much they sold. Tracking KPIs at a store level alone without being able to compare them on an individual level is futile. Unless each Salesperson can be shown how well they performed in relation to everyone else it is impossible to know their own area of weakness or strength. Summary An ideal Retail Performance Sales Performance Management System must: 1. Focus on the two areas within the Store Managers control: Wages and Individual Sales Performance. 2. Offer a Rostering Solution for controlling wages and identifying your best Salespeople. 3. Give feedback via a Reports Dashboard about the Individual Sales Performance of each staff member compared to the Store Average so as to identify the most deficient selling skills of each person. 4. Integrate coaching behavior tips and advice so that Managers can instantly be enlightened as to what to coach each individual Salesperson. Article Source: http://www.articleblender.com Steven Lipschitz has a 12 year track record in Internet enabled applications and today specializes in Retail Performance Management Solutions. His company developed the world renowned Retail Performer Software. FREE Trial Download available.
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AZTechBeat starts coverage for Arizona software industry
<img src='http://assets.bizjournals.com/phoenix/print-edition/Shojaee_Hamid*100.JPG?v=1'>Hamid Shojaee is adding publisher to a bio that includes tech entrepreneur, software CEO and incubator developer.
Shojaee, CEO of Axosoft in Scottsdale, launched his latest creation, AZTechBeat.com, earlier this week as a way to provide more in-depth coverage of the state?s software and technology industry than what currently exists.
It?s not just the coverage that is lacking, but an overall sense that software isn?t a viable industry in Arizona, despite numerous startups, Shojaee said.
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Hostess Brands bankruptcy could mean 130 Arizona job cuts
<img src='http://assets.bizjournals.com/kansascity/news/HostessTwinkies*100.jpg?v=1'>If Hostess Brands Inc. ? the maker of Twinkies, Wonder bread and Ding Dongs ? can?t solve its financial trouble via Chapter 11 bankruptcy, the company could liquidate.
That would result in 130 job cuts in Arizona and Hostess closing 16 locations statewide.
The company has already reported the possible cuts and closures to the state of Arizona. Five locations in the Phoenix area would be impacted.
Hostess is trying to reorganize and work out debt and financial troubles via bankruptcy proceedings,...<div class="feedflare">
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A rundown of the AZBio Expo from A to Z
<img src='http://assets.bizjournals.com/phoenix/news/azbio%201%20Barb%20breakfast*100.jpg?v=1'>More than 250 people attended the Arizona BioIndustry Association?s Expo on May 17, providing a wealth of panel discussions and networking opportunities.
Click the image to the right for a slide show and rundown of activities at the conference.
At the event, BioAccel CEO MaryAnn Guerra announced that biotech startups can apply for up to $300,000 in seed funding and have an opportunity to take free space at the Bioinspire incubator in Peoria.
?This level of investment is a game changer for...<div class="feedflare">
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Whisenhunt among Top 10 highest paid coaches in pro sports
<img src='http://assets.bizjournals.com/phoenix/news/andy%20reid*100.jpg?v=1'>Arizona Cardinals coach Ken Whisenhunt ranks as the eighth highest paid coach in professional sports with a $5.75 million per season salary.
That is according to Forbes magazine?s list of the Top 10 highest paid coaches in North American professional sports.
Whisenhunt ties for 8th place with Pittsburgh Steelers coach Mike Tomlin. Whisenhunt, 50, has a 43-41 record with the Cardinals over five seasons.
Click the image to the right to see the Top 10 and how much each coach makes.<div class="feedflare">
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Ken Bennett comments stir up Obama 'birther' buzz
<img src='http://assets.bizjournals.com/phoenix/blog/business/ken%20bennett*100.png?v=1'>Arizona Secretary of State Ken Bennett is generating plenty of national political buzz today for telling KFYI-AM 550 this morning he could keep President Barack Obama off the November ballot unless he receives some more information from the state of Hawaii confirming the president?s birthplace.
Bennett?s comments come after a report from Breitbart.com that old Obama literary biographies said he was born in Kenya. A literary agent is now saying that Kenyan birth entry was a mistake.
Still, Obama?s...<div class="feedflare">
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Wave of NFL concussion lawsuits could flow down to teams, doctors, other sports
<img src='http://assets.bizjournals.com/phoenix/news/Leach,-Travis*100.jpg?v=1'>The wave of concussion-related lawsuits against the National Football League could reverberate down to individual teams, their executives, coaches and team doctors. Attorneys also warn there also could be similar suits filed against college and even high school football programs as well as other sports like hockey and lacrosse.
Most of the current cases have been brought by former players against the NFL, a $9 billion a year business and potential cash cow for plaintiffs and their attorneys. Travis...<div class="feedflare">
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BBB announces Arizona Ethics Award winners
The Better Business Bureau of Central, Northern and Western Arizona has named five Arizona winners of its 11th annual Business Ethics Awards.
The winners were announced May 17. They were:
Convertabath Inc. of TempeIntegrity Tree Service Inc. of ScottsdaleArizona Fire and Water Restoration Inc. of PhoenixSchumacher European Ltd. of ScottsdaleBlackstone Security Services Inc. of Phoenix
?The companies selected not only practice ethical behavior within their organization, they also serve as advocates...<div class="feedflare">
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Fuego CityScape set for downtown Phoenix debut
<img src='http://assets.bizjournals.com/phoenix/blog/prime_cuts/Moloznik_Jeff*100.png?v=1'>The Fuego Restaurant Group will open its fourth Phoenix-area location this summer with Fuego CityScape in downtown Phoenix.
The restaurant, which will serve modern Mexican cuisine, is set to open the first week of June at the downtown mixed-use development.
?The atmosphere will be intimate, romantic and elegant,? said owner Jeff Ward.
Other local Fuego brands include Fuego Bistro, Fuego Tacos and Fuego Cantina.
Ward opened Fuego Bistro, his original restaurant, in 2006, right as the recession...<div class="feedflare">
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Peoria offering $1.2M in seed funding for biotech startups
<img src='http://assets.bizjournals.com/phoenix/blog/business/Guerra_MaryAnn*100.JPG?v=1'>MaryAnn Guerra, the CEO of BioAccel, announced Thursday at the Arizona BioIndustry Association?s Expo that applications are now being accepted for $1.2 million in seed funding for biotech startups.
Companies and entrepreneurs selected will be eligible for free or reduced lab and office space at Bioinspire, an incubator at 13660 N. 94th Drive in Peoria. The incubator is a partnership between BioAccel, The Plaza Cos. and the city of Peoria. The money is coming from the city?s budget.
Each company...<div class="feedflare">
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Networking calendar for week of May 18
To submit networking meeting or event information, or to update these listings, email phoenixcalendars@bizjournals.com.
MONDAYS
Arizona International Growth Group, first Monday of the month, 7:30 a.m., SkySong, 1475 N. Scottsdale Road, Ste. 200, Scottsdale. $20. www.azigg.com.
EcoMonday, first Monday of the month, 7:30 a.m., Hilton Garden Inn, 1940 W. Pinnacle Peak Road, Phoenix. $10. Registration required: www.ecomonday.com or Gail, 602-524-3836.
Entrepreneurial Mothers Association, first Monday...<div class="feedflare">
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