Maximizing Sales: A Multidimensional Approach
In business, attention is often focused on sales as a key performance indicator (KPI). However, is sales itself the true indicator or rather a result of other factors?
To thoroughly understand the performance of an action or process, it is important to measure it according to its relevant variables and not limit oneself to the final result. For example, when analyzing the results of a marketing campaign to determine its success, it is essential to ensure that it was implemented correctly. Aspects such as product placement on the sales floor, correct pricing, and availability of POP material are crucial. Execution issues often impact campaign results, leading to management’s incorrect conclusions and poor decision-making.
In this context, commercial implementation would be a critical variable that directly impacts sales. Other factors could be customer service, waiting time at checkout, or in-store customer experience.
Understanding that sales result from multiple factors allows management to focus on optimizing each aspect to drive results. For instance, monitoring and adjusting variables affecting the NPS or shrinkage levels can provide valuable insights into these KPIs, their overall performance, and areas that need attention. Correcting these aspects will lead to an increase in sales.
It is worth noting that while variables are universal across retail, their relative importance in results varies by segment. Luxury sectors emphasize sensory experiences upon entering the store and factors related to the friendliness and expertise of the salesperson. In convenience stores, clients prioritize product availability and waiting time at the checkout.
Frogmi is an in-store management platform that goes beyond providing quantitative data on critical sales-impacting variables; it allows you to explore the root causes. For example, if you observe high shrinkage rates in your locations, you could first identify if it’s a widespread issue or specific to certain stores. Going deeper into the analysis enables you to determine the actions being taken-or not-in each store. Thus, you can identify a Store Manager who carries out commercial activations of products about to expire, encouraging their rotation, and obtaining outstanding results compared to other stores. Being aware of these and other initiatives will help you take immediate action to increase the rotation of soon-to-expire products, reduce shrinkage, and increase sales.
By identifying key execution variables and involving all relevant areas, Frogmi ensures that critical actions are carried out correctly and on time. This creates an environment where every action matters, and every responsibility is clear, leading to sustained improvement in KPIs and, as a result, in sales.
