5 ways to track your Fashion Business Performace

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5 ways to track your Fashion Business Performace

FASHION BUSINESS TIPS

1. Sales per square meter

This metric pertains to the number of sales you generate per square footage of space in your store.

You can calculate your sales per square meter using the following formula:

net sales/total square meters of the store. 

For example, if your store has a total space of 500 sq meters, and you generate total sales of N500,000 in a day, this means you are generating N1,000 per square meter per day

Here are key reasons to measure sqr meter etc

  • It is a good indicator of store productivity, and it can also tell you if you’re making good use of space and products in your shop. 
  • It helps you increase the layout of your store, have a winning product assortment, optimize your prices and make your customers spend a long time in your store.

 

2. Sales per employee

Sales per employee is a measure that comes in handy when you’re planning your staff’s schedules and initiatives. You can easily measure it using this equation:

net sales/number of employees 

For instance, if you have 10 sales agents and you are generating N5,000,000 per week in sales. Your sales per employee are N500,000 per week.

Why measure retail sales per employee?

It helps you make smarter employment decisions; particularly when it comes to hiring, rostering, and compensation.

How do you improve your sales per employee?

The best way to improve on this metric is to get your associates to generate more sales. Depending on your store, this may include actions like:

  • Setting smart sales goals per employee
  • Investing in sales training
  • Motivating your staff to perform better
  • Running friendly competitions to gamify that sales process

 

3. Conversion Rate

The conversion rate is the proportion of store visits to the number of shoppers who made a purchase. To calculate it, use the formula:

number of shoppers who made a purchase / total number of visitors

For example, if you had 40 visitors this week and 20 of those visitors successfully made a purchase, your conversion rate is (20/40)= 0.5. This means that 50% of those who visited your store made a purchase

Why measure your retail conversion rate?

Your conversion rate tells you how good you are at turning lookers into buyers. Driving store visits is great, but traffic alone won’t add much to your bottom line if your visitors don’t convert.

How do you improve your conversion rate?

Increasing your conversion rate starts with your employees. Be sure to train and empower your associates to:

  • Build rapport with customers.
  • Become “likable experts” who can provide product information and insights.
  • Be convincing without being pushy.
  • You are pushing the value of your products to your customers.

 

4. Average transaction value

This metric tells you how much shoppers spend on your store on average. To find it, use the formula:

total revenue/number of transactions

For instance, if you had revenue of N5,000,000 and with a total of 50 transactions. Your average transaction value is N100,000. This means that an average customer spends N100,000 on an order

Why measure your average transaction value?

This metric gives you a general idea of how much people are spending. A high amount means that shoppers are purchasing your more expensive products or they’re buying larger quantities.

You could derive some insights and action steps from this KPI. For instance, having a low average transaction value could indicate that you need to rethink your pricing. Or, it could mean you have to implement new sales tactics such as upsells, bundles, or other offers to get shoppers to spend more.

 

5. Customer retention

Your customer retention rate tells you the number of customers that return to your store. This metric is an excellent gauge for customer service, product performance, and loyalty.

You’ve worked hard to get new customers, so it’s only right that you figure out whether or not you’re keeping them. 

How to improve customer retention

Getting people to come back boils down to how well you manage your customer relationships. Doing that can mean various things including:

  • Tracking customer purchases and offering personalized recommendations
  • Developing meaningful relationships through fantastic customer service as well as community-building efforts like classes, events, or online groups
  • Implementing a killer loyalty program to encourage shoppers to keep coming back

1 Comment

  1. Tobi
    July 15, 2022 at 10:09 am

    Awesome tips!.

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