Sales Composition

Sales are composed as shown in the following diagram.

Sales are composed by multiplying each KPI, and by analyzing each KPI, it is possible to maximize sales or identify factors of poor performance.

Set Target KPI Numbers Based on Sales Budget

When setting target KPI numbers based on the store budget, the following figures can be considered as reference.

・Actual figures from the previous year, comparison rate with the previous year's figures against the budget (%)

・Actual figures from the previous month, KPI increase/decrease rate from the previous month (%)

・Trend values

We will guide you through some target setting scenarios based on the above reference values.

◯ Set Target Purchase Numbers Based on Store Budget

For each store, the target purchase numbers are calculated using the average customer unit price for the same period of the previous year from the set monthly and quarterly budgets.

(Example) ¥1,000,000 ÷ ¥6,000 = 167 (cases)

◯ Setting KPI Targets Based on Budget and Comparison with Previous Year's Sales

Calculate the reference value for the target KPI against the budget by multiplying the comparison ratio with the previous year's sales performance and the previous year's KPI figures.

(Example) ¥1,000,000 ÷ ¥800,000 = 125%

200 (purchase cases) ✕ 1.25 = 250

* The KPI item to multiply the comparison ratio with should be either the number of purchase cases or the average customer unit price, and apply the comparison ratio similarly to the KPI related to each KPI to calculate the reference value.

◯ Reflect the trend values of each KPI from the previous month

By reflecting the trend values of recent past data in the figures for the same period of the previous year, it is possible to calculate reference figures that match the current performance trends for target values.

(Example) Purchase count comparison rate from the previous month to the previous year: 110%

Customer unit price comparison rate from the previous month to the previous year: 95%

200 (purchase count for the same period last year) ✕ 1.10 = 220 (items)

¥6,000 (average customer unit price for the same period last year) ✕ 0.95 = ¥5,700

※ From the calculated figures, further multiply by the comparison rate of the budget and the previous year's sales to calculate the target reference figures for the specified KPI.

〇Check Hypothetical Goals with KPI Tree

In the default home sales target chart, the sales progress KPI tree for 【Today】 【This Week】 【This Month】 is displayed.

Based on the target sales progress, each KPI target value required to achieve the goal is automatically calculated.

The calculation method for the target KPI is specified below.

Calculation Method for Each KPI Target Value

That's all. If you have any questions or concerns, please contact us via the chat on the support page or atsupport@flow-solutions.com.