Black Friday You Can't Manage What You Don't Measure

POS SOFTWARE

 

 

We are now coming to the official start of the Christmas holiday period. I hope you are ready.

Among other things, you will need to measure your shop to see how it went for you.

Here are two KPIs that I recommend you use in your shop as an absolute minimum for shop management.

Foot traffic

If you are in a shopping centre, you may get this figure from the centre management, often in my experience, the accuracy of these figures are very dubious, some supply figures for parking spots taken up but these are better then nothing. If you have nothing like that, ask other retailers near you or look outside and see what they think.

If you want more personalised figures, I suggest a simple people counter that you can get from many electrical shops. Most of these require that you manually record the number for the people that entered your shop on that day. You can get dearer ones that automatically do this and some that talk to our point of sale software. What I have noticed is if you want something better then simple, the price and complexity go up dramatically. As such I would suggest going with a cheap one first and afterwards if you discover you need more, look for a better one at least you will, then know what you need.

What you need to use them is a base count of what count you and your staff do every day. This you will need to deduct from the recorded number.


Profit per day

There are two KPIs that I recommend that you use - Number of sales and the Profit. 

Now there are many profit reports in your POS system, check a few until you find one you like. I like the top sales report as it gives all the information, but you may prefer something else.
 

You now have four figures that I am sure will do fascinating reading.

Professional marketers commonly do this sort of analysis.

Foot traffic rate = Foot traffic / Centre traffic  (this one is often very rough and is considered  an interest measure)

Conversion rates = Number of sales/Foot traffic

Average transaction profit = Profit / Number of sales 

 

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