By correctly understanding the KPIs that makeup sales, you will be able to understand better the performance of your store.
On this page, how each KPI affects sales will be introduced one by one.
The basic composition of sales is determined by "how many customers there are and how much they pay".
In other words, it can be rephrased that the two KPIs, [Number of customers purchased], which indicates how many purchasers there are, and [Item Price per Customer], which indicates the amount paid in one transaction, make up sales.
By knowing how these two KPIs have changed compared to the comparison period (actual results of the previous week and the previous year), it is possible to understand how much results were achieved and if a store hit the sales target.
The number of customers who purchase is determined by the "percentage of the customers who came to the store and made an actual purchase".
In other words, it can be rephrased that the two KPIs: [Number of customers visiting the store], which indicates how many customers that have visited the store, and [Purchase rate], which indicates what percentage of customers have made purchases make up the KPI number of customer purchased.
By knowing how the status of these two KPIs has changed compared to the comparison period (actual results of the previous week and the previous year), it is possible to understand the reason for the increase or decrease in the number of purchasers.
* Please see this article for a detailed explanation of the increase/decrease pattern of the number of purchasers.
The number of Purchases is determined by "how many products you purchased and how many".
In other words, it can be rephrased that these two KPIs: [Item Price], which indicates how many products have been sold, and [Items per Transactions], which indicates how many products have been purchased.
By knowing how the status of these two KPIs has changed compared to the comparison period (actual results of the previous week and the previous year), it is possible to understand the reason for the increase or decrease in the average purchase.
* Please see this article for a detailed explanation of the increase/decrease pattern of the average purchase.
In this way, sales are largely composed of six KPIs.
By grasping the status of each KPI, it becomes possible to firmly recognize why sales have increased or decreased and to create and execute an action plan.
On the FLOW platform, we have prepared a [Radar Chart] function that allows you to understand how each KPI affects sales.
It is a very easy-to-use tool for observing at fixed points in a well-separated period such as one week or one month.
