The most valuable and profitable time, is the time the point of sales manager spends with the client. The retail industry is one of the most competitive in the current market. The need to increase sales and foster the loyalty of a great number of clients are two essential objectives of any company.
Why are KPIs essential?
The measurement and interpretation of sales KPIs allow sales teams to carry out processes more efficiently and, thus, increase sales, reduce client loss and lower costs.
How do you determine KPIs and which must your company consider?
Although each company can have their own KPIs, there are some that are common to most of them.
Sales managers should automatically set, measure and monitor them according to the company’s strategy. However, this task requires detailed previous analysis. There are so many things that can be measured that it is essential to determine which are relevant. Those that align and will make the company’s objectives easier to achieve.
Quantitative vs qualitative KPIs
Even though in this article we are going to focus on some KPIs that improve point of sale productivity quantitatively, we must ensure that we keep in mind both quantitative and qualitative indicators.
The fact that the latter are more difficult to assess does not mean that it isn’t necessary to do so: attitudes towards the client, towards co-workers, towards the company itself, towards sales, etc. In other words, it’s not just about assessing the results, the sales figures. We must focus on how the POS manager sells, to whom they speak, what their sales abilities are, what opinion their clients and co-workers have of them, etc.
What indicators must we measure at the point of sale?
The assessment of a sales representative usually focuses on their results, much more so than on their sales efforts. However, it is a mistake to only focus on what they achieve and ignore what they do, because we must gather this information that will be vital for the prediction of results.
So, for greater clarity we can divide KPIs that increase productivity at the point of sale into 2 types:
- Levels of turnover.
- Agreements reached.
- New clients gained.
- Orders, sales or sale agreements made.
- Claims and complaints.
Activities that have generated the previous results.
- Visits carried out.
- Average visit time.
- Visits where one was able to negotiate with the decision maker.
- Quotes given.
- Travel time.
- Subsistence and transport costs.
Absolute and relative KPIs
With regard to extracting the maximum benefit from the analysis of KPIs, it is necessary to compare them and narrow them down. For example, a figure such as “orders received” will offer us more valuable information if we put it in relation to:
- The orders received in the previous period.
- The orders received by the whole team.
- The average number of orders received by the team.
- The orders received in relation to the total number of clients visited.
Peter Drucker, father of Management, said “you can’t manage what you can’t measure”. That’s why it is necessary to give context or an element of comparison to the data that we are gathering to know if we are on the right path, if we are progressing, if we are moving closer to the objectives we have set as a company.
This way, we will be able to reinforce everything that is giving good results and introduce the necessary changes to correct that which isn’t.
What can we do to guarantee the use and monitoring of the KPIs?
To ensure the optimal use and monitoring of the KPIs, there is a series of factors that will help us to improve the POS manager’s productivity at the point of sale.
Firstly, real-time monitoring of the activity of the sales team, which includes all metrics associated with sales. This way, supervisors can make immediate strategic decisions according to what they observe: correct errors, anticipate problems, design tailor-made special promotions, etc.
Secondly, the sales team must be able to access all the information updates in real time: price changes, last-minute promotions, stock, etc.
Furthermore, communication with POS manager and their supervisor must be guaranteed and their access to relevant stored data must be immediate and free-flowing.
Both the supervisor and the POS manager must be able to immediately create reports and share them instantly, check the client’s history, the current or next promotions, etc.
At Vincle, we want to help you manage all this and much more with just one piece of software that is compatible with any device and operating system. It allows all users to save time on low value administrative tasks so they can focus on the most important things: increasing sales and fostering customer loyalty.