10 New Truths Of Retail

Retail isn’t what it used to be. Sure, merchants are still about selling products to consumers, but how it’s done is so different that retail is fundamentally a much different industry and profession today. Forgive me if I sound like a broken record, but building a store today is very different than just a decade ago. There are fundamentals that remain the same, but here are 10 New Truths of Retail that merchants should take to heart.

Source: 10 New Truths Of Retail

The 8 most valuable customer service skills your team needs to be successful 

Being Patient is the starting point.In order to serve your customers, giving them the time and attention they deserve, sometimes providing fast service is an excuse to provide poor service. Service can yet fast and efficient but still memorable.
Be Attentiveness, learn ho to read your customers. 

The ability to really read your consumer, read body language and identify their needs even without an in depth conversation. Train yourself well enough with those soft skills that will enable you to anticipate your consumer needs to satisfy them, exceeding expectations.
Mastering Clear Communication Skills to reach a wider audience.

Talk to your customers in a pleasant and respectful way, be friendly and offer trough your communication skills, support and mostly solutions to problems, options and use open ended questions to understand as much as you can.
Having Deeper Knowledge of the Product you’re selling.

Knowing your products in depth will help you sell them better, providing better alternatives or complimentary items, explaining sometimes the reason behind the price or what message the brand is trying to convey with it. In the end all of us prefer to be assisted by knowledgeable people, no matter what we are purchasing.
A positive language will leave a positive memories.

Turning a bad day into a good one for your customer can be a really good marketing tool beside helping your store revenues. To help this you should always use a positive language and be a calming presence, to empathize and put your consumer at ease.
Be focused on your goals, and keep in mind your target.

Trough outstanding service,you are aiming to leave your customers with a positive memory of the shopping experience and at the same time you want to achieve your sales goal. Keeping your goals clearly in mind will help you provide a higher quality service creating a win win scenario for both your customers and your business.
Manage the ordinary, handle the extraordinary 

You should always be prepared to handle extraordinary situations when dealing with customers, you might have to deal with a complaint or solve an issue not directly caused by you. This could be an amazing opportunity to leave a customer with a positive feelings and creating loyalty in the long period.
Knowing more is an ongoing journey, have willingness to learn.

Every consumer interaction is a learning curve, being prepared and have the willingness to learn from your mistakes and act on feedback, from both your peers and your customers will enrich your knowledge and enhance your skills. This will help you provide a better and more tailored service day after day. 
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Simply explained retail KPI’s 

“KPI’s can truly help you to get insight of your business performance, “What gets measured, gets managed”

KPIs are also known as performance metrics, business indicators, and performance ratios. A Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs to evaluate their success at reaching targets.
The Most common retail KPI’s are, or at least the ones your team should master and know how to leverage are :


Let’s look at each one in details a provide a simple explanation.


What is conversion rate? 

It is simply the percentage of visitors that get converted into spending customers. Simply transactions / traffic x 100 = CR %

How is conversion rate affected?

With Customer Service truly at 360 degrees, store presentation standards, communications amongst the team and with customers, replenishment of the sales floor, the perfect and proved formula would be,asking during the trading day is the store is Full, Priced,Tidy and Providing a premium shopping experience.


What is the Average Basket?
It is simply the average value of each transaction that take place into your business. It is calculated dividing the total sales by the transaction made Total revenues / transactions = ATV in value. 

What does affect ATV (average transaction value) ?

Once again Customer service, staff knowledge of products sold , ability to sell complementary items, and to propose alternatives (also known as cross and up selling) Selling items with higher individual price or sell more units per transactions.


What is AGV (average good value, in fashion retail the G usually stands for garment)?
It is the average price of each unit sold in your business. It is calculated dividing total revenues by the units sold. Total revenues/ units sold = AGV in value. Sometimes this KPI is also called ASP ( average selling price)

How is AGV affected ? 

By excellent (or poor) Customer service, staff knowledge of products being sold, ability to shift consumer to highly priced alternatives and propose always full priced merchandise vs. discounted one. 


What is UPT?
It is the average units sold per each transactions in your business. It is calculated by dividing total units sold by the total transactions that were made. Total units / total transactions = UPT 

What does affect UPT? 

The ability to sell the complete package at all time is definitely the main driver of this KPI, and of course Customer service, staff knowledge about products being sold, ability of complementing each item sold with another.


What is SPH?
It is the average of how much of each hour invested is translating into sales. Total sales generated / hours worked expressed in monetary value. Workforce productivity is improved trough accurate staff planning evaluating KPI’s, business trends and workforce training,motivation and development.  

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