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Store Front KPIs

Store front Key Performance Indicators (KPIs) are metrics that evaluate the performance of an organization’s customer-facing employees. These store front KPIs measure the efficiency and effectiveness of the “front of house” employees who are responsible for creating positive customer experiences. Store front employees play a crucial role in the success of retail stores as they are responsible for the customer’s first impression. Their ability to provide excellent customer service can directly impact sales and customer loyalty. Therefore, it is essential to measure their performance using store front KPIs to ensure that they are meeting the organization’s standards and contributing to the store’s overall success.

Store Front KPIs Reporting Dashboard
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Store Front Job Objectives

In the retail industry, store front employees play a critical role in the success of the organization. The objectives for the store front are specifically designed to measure the efficiencies of the “front of house” employees who are responsible for client interactions, maintaining shop cleanliness, and creating engaging shop front displays. These metrics are essential for evaluating the performance of the employees who directly impact customer experiences and contribute to the organization’s overall success. By measuring these KPIs, retail organizations can identify areas of improvement and ensure that their store front employees are meeting the organization’s standards.

  • Appropriately display products in the shop – Retail displays and visual merchandising are fundamental to the land-based store’s marketing strategy. If the retailer’s shopfront is attractive and pleasing to the eye, it will draw the consumers’ attention, inviting them into the store, ensuring that they will purchase the store’s products, and converting into returning customers.
  • Capture all sales in the POS system – The POS system processes all sales for the retail store. It also captures a record of all items sold in the store to improve stock control management. Employees must capture all sales transactions on the POS system. Otherwise, discrepancies in stock levels, banking transactions, and sales figures will occur.

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  • Complete daily sales, expenses, delivery and banking reports – Daily reports like sales, expenses, delivery, and banking reports are essential for proper business decisions. Management needs these reports every day to monitor sales trends, stock control levels, control costs, and improve operational efficiencies. This KPI must be measured to ensure that these daily reports are sent to management.
  • Follow suit with operations manual – The operations manual is the documentation that employees use to perform their job functions correctly. It documents the standard operating procedures (SOP) for employees to perform their roles safely. Compliance with this operations manual is mandatory. This metric is useful to ensure that employees are adhering to the company-wide SOP.
  • Follow-up with customers to close on pending sales – Most customers know what they want to buy when they walk into the store. Some consumers are undecided and need guidance with their purchase. It is essential to utilize a specific sales technique with these uncertain customers to close the sale.
  • Fulfilling and shipping online orders – It is vital to measure the number of online orders that are fulfilled and shipped within a stated timeframe. This KPI measures fulfillment and shipping employees’ productivity levels. The greater the number of product orders that are fulfilled and shipped per hour, the higher the company’s turnover and profitability metrics.
  • Generate system receipts for all sales – A system receipt for every sales transaction processed in the store must be generated. These receipts should be kept for three to six years for tax audit purposes.
  • Handle in-shop and online sales – This KPI is designed to measure the extent to which retail employees are in control of both the brick-and-mortar and online sales. If they have a good handle on the sales transactions, then the sales figures will increase as the company’s brand reputation grows.

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Store Front Customer Support Job Objectives

Customer support or service is a critical aspect of any business that deals with customers regularly. Ineffective customer support can negatively impact sales metrics. Therefore, store front customer support job KPIs are designed to track and measure the efficiency and effectiveness of customer-facing employees in performing their daily tasks. These KPIs are essential for evaluating the performance of employees who have direct interactions with customers and contribute to the organization’s overall success. By monitoring these metrics, businesses can identify areas of improvement and ensure that their customer support employees are meeting the organization’s standards, ultimately leading to increased sales and customer satisfaction.

  • Handle new inventory requests when products hit the re-order level – It is vital to manage the ratio between stock on hand and product sales. Therefore, when the stock levels of an item hit the reorder mark, the optimum number of items must be ordered to return stock levels to their maximum predefined levels.
  • Keep shop tidy and presentable at all times – Not only is an untidy and unclean workplace unhygienic for staff to work in, but an untidy retail store chases walk-in customers away. Therefore, it is essential to make sure that the store is kept neat, tidy, presentable, and attractive to clients at all times.

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  • Provide excellent customer service – Customer service aims to leave customers feeling valued and respected. This translates into brand loyalty, repeat customers, and the sale of multiple products. It is important to continually strive to improve customer service levels.
  • Record expenses and send daily updates to management – It is necessary to keep a close eye on a company’s expenses by keeping a record and sending daily updates to management; otherwise, expenses can get out of control and overtake income.
  • Tag all products in the shop – Each product must be tagged with the correct price, size, and manufacturing details. Hunting for product details, especially the price and size, frustrates customers and reduces the chance that they will purchase anything in the store.
  • Timely depositing money into the bank – Healthy cash flow is one of the successful retail organization’s must-haves. It is necessary to deposit all proceeds from the day’s trading into the company bank account as soon as possible. Depositing monies received into the bank account is a reliable way of preventing fraud or cash from disappearing.

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Store Front Sales Analyst Objectives

Store front sales analyst objectives are crafted to measure the job efficiencies of sales analysts. Sales analysts play a crucial role in retail sales teams, responsible for collecting, analyzing, and reporting sales-related data to increase sales productivity and provide support to the sales team. These KPIs help businesses evaluate the performance of their sales analysts and identify areas for improvement. By monitoring these metrics, organizations can ensure that their sales analysts are meeting expectations, contributing to the success of the sales team, and ultimately increasing sales revenue.

  • Sales by department or category – This KPI tracks and measures the storefront sales analyst’s ability to measure the total number of sales by department or category over time. The higher this metric, the more accurate the information that management uses to make purchasing decisions.
  • Average purchase value – The average purchase value measures the average value of each customer sale or purchase made by customers. This KPI tracks and measures the storefront sales analyst’s ability to accurately calculate this value over time.

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  • Amount of sales reduced or promoted – This KPI tracks and measures the storefront sales analyst’s ability to calculate the income generated from sales with reduced prices or products on promotion. The higher this metric, the more accurate the statistical information derived from this data.
  • Inventory turnover – The inventory turnover is a ratio displaying how many times a company has sold and replaced its inventory over time. The company can then determine how many days it takes to sell the stock on hand. This ratio, when accurately calculated, allows management to forecast inventory purchasing metrics.
  • Gross Margin Return on Investment (GMROI) – The Gross Margin Return on Investment (GMROI) metric shows how much profit inventory sales produce after covering inventory costs. It is an inventory profitability ratio and is calculated by the storefront sales analyst. This KPI measures the analyst’s ability to calculate this ratio accurately and timeously.

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Store Front Business Profitability

  • Sales per square foot – Sales per square foot is calculated as the fraction of net sales to the total square footage area of the store.
  • Sales per employee – Sales per employee is calculated as the fraction of net sales to the total number of active employees serving the store customers.

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  • Conversion rate – Conversion rate is calculated as the fraction of total number of sales orders to the total number of customers visited the store in a given period.
  • Gross profit margin – Gross profit margin is calculated as the fraction of gross profit, the total revenue less fixed expenses, to the total revenue in that period.
  • Net profit margin – Net profit margin is calculated as the fraction of net profit, the total revenue less all expenses, to the total revenue in that period.
  • Average transaction value – Average transaction value is calculated as the fraction of total sales to the total number of sales orders executed in a given period.
  • Basket size – Basket size is calculated as the fraction of total items sold to the total number of sales orders executed at the store in a given period.
  • Year-over-year growth – Year-over-year growth is calculated as the percentage of difference of current and last year’s sales to the last year sales at the store.

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Store Front Inventory & Customers

  • Inventory turnover ratio – Inventory turnover ratio is calculated as the fraction of the total sales to the average inventory cost in the given period.
  • Sell-through rate – Sell-through rate is calculated as the fraction of the total units sold of a particular item to the total units procured at the beginning of the period.

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  • Shrinkage – Shrinkage is simply calculated as the difference of ending inventory value in the system less the actual inventory value.
  • Foot traffic count – Foot traffic is calculated as the total count of both existing and new customers who visited the store in a give period.
  • Promotions uplift – Promotions uplift is calculated as the fraction of the incremental sales during the promotional period to the baseline sales of the promoted product(s).
  • Dwell time – Shopper dwell time is calculated as the total hours spent by all your customers browsing various shelves at the store.
  • Customer retention – Retention percentage is calculated as the fraction of total repeated customers at the end of a period to the total number of customers the store had at the beginning of that period.

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The store front KPIs are fundamental to ensuring that the front of house staff quickly fulfills their duties. These employees engage directly with the visitors and provide the reason for purchasing the brand’s products. They are also responsible for ensuring that the shop is clean, neat, and tidy. Finally, they are accountable for the shop front displays, arranging them to attract potential customers in the door.

Measuring these KPIs is vital to ensure operational success. They focus on tracking front of house employee behaviors, including their skills, attitude, and work ethic. Hard-working, polite, attentive employees result in customer sales and returning customers.

It is essential to keep track of employee competencies to reward productive employees and solve challenges and issues before they spiral out of control.

The storefront KPI questions we recommend are modifiable based on your organization’s unique requirements. Or you can use our questions as they apply to most types of retail organizations.

Benefits of AssessTEAM cloud-based employee evaluation form for your store front team.

  • Use on all smart devices
  • Include custom KPIs
  • Keep historic trends
  • Include eSignatures
  • 360-degree feedback
  • Unlimited customization

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