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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.

Our articles continue...
Online University Design
An online university is a web site that provides a complete "one-stop shop" for all your employees' training needs. By logging into an online university, your employees obtain information about newly released training programs, guidance on the programs that are appropriate for them, registration services for both online and classroom courses, and immediate access to their training records. Online universities are not the exclusive province of large corporations. Small and midsize firms that do not have their own private networks can provide online university services to their employees using an ASP (Application Solution Provider) model. Many of the key features of online universities are now offered by a national and international suppliers on an outsourced basis.
How to Teach Adult Learners
Many aspects of teaching adults are fundamentally different than those employed in teaching children. Andragogy is a word popularized at the end of the twentieth century to describe the difference. This article by D. Verne Morland, managing partner of ROI Learning Services, highlights the important principles in teaching adults and suggests how they can be applied to business training.
How to Write Instructional Articles
Instructional articles are very different from articles in reference manuals, product brochures, or even professional literature. This article by Herbert L. Bivens, chief learning officer of ROI Learning Services, defines instructional articles and describes how to write them.
Put Earn in Your Learning
Many companies view training as a component of their employee benefits package - an expense to be controlled, not an investment to be maximized. This attitude is dangerously outdated. Survival in today's global economy requires continuous, cost-effective, world-class training. This article by D. Verne Morland, managing partner of ROI Learning Services, explains how to identify the "earn" in learning and measure the results as you would with any other business investment.
Online and Blended Course Development
Online courses are self-contained, independent-study programs delivered via the worldwide web. They may be relatively simple and short, delivering a little knowledge when and where it is needed. Or they may be sophisticated, multimedia learning experiences that engage students for many hours over several sittings. Online courses are primarily useful for conveying new information; they are less effective in conveying and rehearsing new skills and in motivating students to apply their new knowledge. Blended courses use a combination or blend of instructional methods and delivery technologies to convey information, skills, and motivation to students. Blended courses offer almost all of the same instructional methods and benefits as classroom courses, but with the distinct benefit of being delivered virtually. ROI Learning Services has the expertise to identify which type of course is best for your company's learning needs and we can deliver high quality programs that will have a measurable impact on your business results.
Designing Online Courses for Adult Learners
At most schools of education aspiring teachers are taught the elements of pedagogy – the art and science of teaching children. Many aspects of teaching adults are fundamentally different than those employed in teaching children and for this reason a new word gained currency in the late 20th century – andragogy. This article highlights the important principles in teaching adults and suggests teaching strategies to support these principles in online courses for higher education and corporate learning programs.
ROI Learning Scorecard [tm]
The ROI Learning Scorecard [tm] is based on the Balanced Scorecard concept created in 1992 by Dr. Robert S. Kaplan and Dr. David P. Norton. Having a balanced scorecard requires you to plan, manage, and measure your organization from four perspectives: 1) The Learning and Growth Perspective, 2) The Business Process Perspective, 3) The Customer Perspective, and 4) The Financial Perspective. This philosophy is consistent with ROI Learning's holistic approach to training and organization development. By using our ROI Learning Scorecard your company will focus on and invest in the right programs to build and nurture a continuous learning organization.
Education Consulting
Survival in today's global economy requires world-class performance. World-class performance requires continuous, cost-effective, world-class learning. The consulting and course development services provided by ROI Learning enable businesses in all industries to achieve world-class learning results while maximize the return on their learning investments.
How to Save Money on Training
Significant cost savings can be achieved by using technology to deliver training outside the traditional classroom. This article illustrates the component costs of a hypothetical two-day classroom course delivered to 20 students ten times a year and explains the significant reduction in training costs that can be achieved by using a "blended" delivery approach.
How to Use Training to Improve Your Business Results
Training your employees is an investment in your business and like any smart investment it should have a good rate of return. Although training is not the solution to every problem, where it fits it can improve your sales and sales productivity; it can lower your costs and improve your gross margin; and it can bring expenses into line and increase your profitability. This article explains that by investing in the right programs managers will clearly see the business results and will, at the same time, be creating a highly competitive, continuous learning organization.
List of Services
ROI Learning is a full-service consulting and development firm for technology-enhanced training. We have the experience to help you accomplish all of your training objectives. We can help you: analyze your training needs, start a training program, reduce your training costs, increase your training effectiveness, reach new audiences cost-effectively, develop and deliver online training programs, and measure the impact of training on your business. We can also take a more holistic approach and help you with your education strategy, tactics, programs, and success measures.


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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Andrew Owens set up a low-emission diesel company for almost nothing
Epicentres of new austerity
Conspicuous consumption is giving way to discretion and soul-searching
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