4 Important Factors In KPI Development
Key Performance Indicators (KPIs) are metrics talked about a lot in retail. ChainDrive Operations Management software offers built-in performance metrics and all the tools you need to establish and track your own KPIs.
After all, the way you measure success is by figuring out how all the various aspects of your business are meeting the goals you have set for their performance. The trick comes in choosing the right KPIs, because if you are measuring your business by a generic standard, you don’t allow for the acknowledgement of unique factors and assets that are the very characteristics that bring your customers to you rather than a competitor.
- Retail KPIs should be very specific. They need to be able to be measured; otherwise, how will you know it has been met? This measurement could be quantity or quality, but it needs to be defined.
- Retail KPIs should be realistic. Increasing sales by 300% in the next quarter is not realistic, unless there is a very unique circumstance. Increasing sales by 10% by the end of the month might be.
- Retail KPIs should be relevant to the mission statement of the enterprise. If you don’t have a mission statement, use the closest thing you have to a goal that your business is striving to achieve.
- Retail KPIs should time-sensitive, with a deadline for measurement. It could be weekly, monthly, quarterly, or whatever. This gives you a defined term of measurement for your assessment.
Establishing your own specific, realistic, relevant, and time-sensitive KPIs will enable your Operations Management team to assess and act upon the facts that make up your business: the performances of stores and employees, sales targets, loss prevention, store budgets, and more.