Key Performance Indicators are performance measurements that help you know if your business is reaching its goals and operating optimally. Use a KPI checklist to help you measure, detect and respond to dips in sales and margins and other strategic facets of your business.
Below, some sample Key Performance Indicators to include on your KPI checklist.
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Monthly Sales
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- What are the month-to-date sales?
- Compare month-to-date sales this year vs last year. Are they improving? By what percentage?
- What are the current sales vs. target for the month?
- Are all stores tracking their sales vs. goal daily?
- Is staff tracking their individual KPI performance?
- Have goals been set to encourage staff KPI participation?
- What is the percentage of payroll to sales for the month?
- Has the location exceeded the payroll budget for the month? If so, by how much?
Year-to-Date Sales and Margins
- What is the year-over-year sales to date? (= Previous YTD – current YTD)
- What is the current gross profit margin? (= Sales revenue – cost of goods sold)
- What is the current net profit margin? (= all revenue – all expenses)
- What is the sales per square foot for this location? (= net sales/amount of sales space)
Sales Transactions
- What is the average transaction count per month?
- What is the average customer spend per purchase? (= total sales/number of transactions)
- What is the average units per transaction? (= number of units sold/number of transactions)
- What is the locations conversion rate? (= number of sales/number of visitors)
- Is customer information being collected at point of sale?
- What is the stores’ percent of customer data capture? (= sales/customer data captures)
Inventory Management
- What is the inventory turnover rate? (= cost of goods sold/average inventory)
- What was the shrink for this location after the last inventory audit? (= number of items on-hand prior to inventory – number of items counted during inventory)
- What is the sell-through percentage for core products?
- What is the sell-through percentage of the most recently received product collection?
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