Why and How to Measure Store Compliance

Compliance with standard operating procedures, merchandising programs, health and safety directives, and loss prevention protocols is essential to the success of a retail business.

Stores that stay on top of programs and brand standards run more efficiently and provide a better customer experience. But with so much going on, publishing standards does not guarantee they will be executed.

Here are 5 reasons why you should measure store compliance as well as how to do so.

Let’s dive in.

Measuring Store Compliance Engages Front-line Employees

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Measurement engages store employees as well as franchisees. Less than 7% of employees say they fully understand their company’s business strategies or what their company expects of them to help achieve company goals.

Measurement reinforces organizational standards and best practices to help front-line workers understand what is expected to achieve company goals.

How to Measure Compliance

Get into your stores! Conducting on-site compliance/retail audits offers the opportunity for members of head office to talk with store leadership and employees. Also, audits help you see what is really going on in your stores.

But remember, district/regional manager visits are not just about checking up on stores, it is also about checking in with stores. Ask questions, actively listen, and see where you can offer resources to help stores achieve their KPIs.

Measurement Sets Priorities

Different stores and franchisees have different priorities based on their experiences. In some cases this can lead to stores ignoring core operating standards. Measurement makes certain stores implement brand standards in full, on time, and in all locations.

HOW TO MEASURE COMPLIANCE

Ask stores to self-audit. Using a retail audit platform like Bindy allows you to request store inspections. Create customized checklists for operations or merchandising programs with clear directives and best practice photos.

Next, use points and mark certain question critical to draw the store’s attention to key operational practices. Request the inspection with mandatory photos to verify execution.

Training is not enough

Training is essential. Moreover offering continuing learning opportunities to employees is a great way to keep them engaged and your operating procedures up-to-date. But, training isn’t enough. It is important to measure application and follow through on training principles.

Auditing training in-store helps you know when training programs are successful and where you may need to adjust your coaching strategy.

HOW TO MEASURE COMPLIANCE

After you deploy a training program, use a checklist to audit stores and track results. Whether training relates to new health and safety protocols, loss prevention or merchandising programs, create a customized checklist to verify execution in all stores.

Once you know what is working and where you need to focus on improvement, you can assign tasks to redo training or complete new programs.

Measurement Levels-Up the Customer Experience

When stores are running well, they are attractive to customers. Using clear communication and task management programs makes certain stores are clean and efficient. A solid customer experience is paramount for customer retention. Forty-two percent of customers will stop shopping with a brand after two bad experiences.

Communicating clear and concise standards means a customer does not have to alter their expectations. Make sure all employees (part-time, seasonal, full-time and franchisees) understand and deliver on service standards.

HOW TO MEASURE COMPLIANCE

Try a content manager to share customer service news, training videos, files, and KPIs. Choose one that let’s you know when stores have engaged with materials. For example, Bindy’s content manager generates read-receipt when stores engage with an entire post. Unlike email, you never have to guess whether or not stores have been through all the content.

Audit your stores, and if something is not up to standard, assign trackable tasks or action plans with recommendations to make certain customer service issues are resolved.

Measurement Helps Shape Operations

When you do away with paper checklists and Excel for store audits, you can track trends more easily. This helps you see where stores are improving, declining, and problem areas. With accurate data you can reshape programs and standards to respond before there is damage to the business and your brand’s reputation.

Choose a solution with built-in reports so you can track trends instantly and easily from any device, anywhere.