Online to offline engagement ( and vice versa )
The reality of modern retailing is that it ’ s not a one channel business . There ’ s a huge amount of crossover between online and offline channels . This impacts customer relationships and sales as it makes it hard to attribute either to a single channel .
It may be that a customer follows you on social media long before they buy anything . Or they may research a product on your website before going in-store . Equally , they may go to a store to interact with a product in person but then follow-up online . As such , it ’ s vital that you track these online to offline and offline to online engagements as much as possible . It might be that you look at your ecommerce sales and see how many come from places where you have a physical store . This is a great measure to track when you open a new store or pop-up as you can see if the store drives an uptick in ecommerce .
We ’ ve also seen retailers who use digital tools to track if in-store customers are already engaged with the brand online and if online customers engage via social media after visiting .
While you could argue that it doesn ’ t matter where a sale comes from , gaining insight into where your customers come from can only help you . It means you can understand customer journeys better and if there are barriers preventing online customers coming into store and vice versa .
Dwell time
This KPI tracks how much time a customer spends in your store or on your website . The general consensus is that more time means a greater chance of a sale , so a high dwell rate is usually the end goal .
4How to improve it
In some cases , you may actually want dwell time to be as low as possible . An example of this would be Starbucks Pickup . These spaces are designed for high turnover of orders by offering a quick buying experience . The longer a customer is in the space the more likely there is to be an issue with queues , orders backing up and / or a negative customer experience .
It ’ s therefore important that you look at what you are trying to achieve with each sales channel to determine whether you want the dwell time to be high or low . It may even vary from store to store if you have different models or offerings across your portfolio .
• Walk through your store or website with fresh eyes . Is it easy to understand where to go to find things ? Are there any barriers that you can remove or improve ? Is it a nice experience ?
• Add services . This could be anything from personal shopping to an online clothing size calculator to the ability to order ahead of time .
• Identify any holes in your user experience and find ways to make it more seamless / enjoyable .
• Offer related content such as blog posts , videos , tutorials , inspirational pictures and social media Q & As .
• Offer experiences ( if appropriate ). These can be digital ( like AR / VR content ) or physical ( like photo spots , makeovers ).
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Equally , with it reportedly taking 7 brand interactions before a customer buys you really want to be connecting with them via as many channels as possible .
How to improve it
• Use tech in-store to collect customer email addresses to follow-up after a visit . This is best done via a useful customer service like emailing a wish list .
• Run localised promotional campaigns online in areas with physical stores or before opening a pop-up .
• Use customer surveys to gather insights such as whether customers follow you online or will be likely to do so after a store visit .
• Explore using online RSVPs and appointment bookings for events and services . This way you can see if those online fans carry through to offline .
Return rate
Do you know how many of the sales you make actually remain sales – i . e . the customer doesn ’ t return them ?
If this isn ’ t a KPI already it should be .
You ’ ll be well aware of the returns challenge the retail industry is experiencing . In the case of online shopping in particular , a sale does not necessarily stay a sale . Returns are rife and with that comes increased costs and resources .
By tracking how many sales you make versus how many returns you get you can start to get a sense of how many transactions stick . Measuring your return rate will also help you identify potential issues with a specific product or service .
How to improve it ?
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• Provide customers with the tools to make an informed decision as much as possible . This includes everything from photos and video to accurate product descriptions to size guides .
• Consider using personalisation to steer customers towards products that they are likely to love and want to keep .
• Offer customers support with their buying purchases . This includes trained in-store staff but also chatbots and even the ability for online shoppers to connect with store staff for live advice .
• Identify key indicators of potential returns such as multiple sizes of a single product in one order or multiple colourways . Can you create a dialogue with the customer around this ? For example , offering a chat with staff to identify the correct size .
Staff happiness
Your staff can have a huge influence on sales . Everything from the way they greet a customer to their ability to answer questions can help to turn a browser into a buyer . As such , staff KPIs tend to focus on sales per employees .
However , savvy retailers have realised that a big part of a staff member ’ s performance is how happy they are . You should want your staff to be happy in theirday-to-day job .
A happy employee is more likely to bring their best self to work . This includes being more enthusiastic and engaged , better educated about products and services and creating a better experience for customers . You only have to look at a Lush store to see this in action .
The happier your employees are the more connected they will feel to your business . This means they care about its success and may be more loyal . It ’ s one thing to recruit good staff and another to keep them .
How to improve it
• Create ways for staff to feedback how they ’ re feeling or any issues they ’ re having . We ’ ve seen retailers have success with employee apps that allow for mood reporting .
• Invest in staff training .
• Arm staff with the tools they need to do their jobs well such as devices for assisting customers .
• Recruit the best possible staff . Some retailers use social media to recruit existing fans of their brand .
• Develop policies that help protect and empower staff .
Conclusion
There are hundreds of potential KPIs , and every retail business is different . It ’ s important therefore that you ’ re not trying to track every possible metric but are tracking the ones that make sense for your business .
If you ’ re not sure where to start though , conversion rate , return rate , dwell time and staff happiness hold value for everyone . By measuring your performance in these areas , you can see where you ’ re doing well and where you need to improve .
Source : www . insider-trends . com / consultancy