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22.02.2017 | Елена Смирнова

A new reality: how to change your approach to management?

part 1     part 2

 

The second point to focus on is the commercial performance of the business. At the simplest approximation, this is an increase in revenue and a reduction in expenditure. What else haven't you tried to improve your performance indicators - average check or conversion rate? What tools encourage an employee to increase KPI? Which expenditure items need to be taken under special control? How to regulate the loss of a retail outlet or restaurant?


Many of my clients, when I ask about the most important indicators of retail efficiency, call the turnover. It must be remembered that this indicator is primarily defined as quantitative. The increase in the level of revenue is more influenced by qualitative indicators. More advanced managers pay attention to the average receipt and the number of buyers. Even more obvious qualitative performance indicators are the conversion rate and the average number of positions in the receipt. Every line employee of your sales department should know the pyramid of performance indicators and understand how quality indicators affect the final revenue.


In retail chains of stores that have used our company's consulting services, sales consultants record their individual indicators every day, while entering data into a table on the wall of office premises. The employee himself can track the dynamics of his figures, compare them with the "average temperature" in the store and get a guideline from the manager what to strive for. Returning to the topic of holidays and contests, I can say that the most effective games are KPI indicators. Now it is especially important to maintain a healthy competitive excitement in the team.


Not in the last place is the desire of the manager to make each client's visit as memorable as possible. Stability in maintaining the level of service or something amazing every time? Special marketing events or offer exceptional conditions for regular customers? The decision is yours.


Even if your regular customer is served at the same level every time, will it make him come back to you again and again? My answer is yes. The level of standards, which is unchanged on Monday morning and Friday evening, makes the client trust you. "So, everything is in order, everything is as usual, and nothing extraordinary will happen," so a loyal buyer may think. And this is quite enough to develop the habit of visiting your retail outlet.

 


On the other hand, you can pleasantly surprise your visitors. Minor gifts or the opportunity to get a free service, for example, sewing a product, consulting an image maker for club card holders or freshly brewed coffee for a customer's companion, who, judging by the tired look, is waiting for her far from the first store, – all these pleasant little things will make customers tell their friends and family about your brand.


By the way, about loyalty programs. Unfortunately, discount cards with the possibility of getting a discount of 3–5% do not work today. That is, they do not serve the main purpose – they do not force you to return to your store. Loyalty programs in Western companies today are built on gamification, opportunities to realize additional bonuses, services that simply cannot be bought, as well as the possibility of receiving an exclusive invitation to the sale before its official start. These are just a few examples from my practice. Create the added value of your product, which will differ from the offers of your competitors. With constant dumping, everyone loses. I think customer loyalty programs deserve a separate article.

 

Author: Alexey Plyasheshnikov

Aoto: shutterstock.com

 

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