How do you track merchandising goals?

1 Define your key performance indicators

The first step to track your merchandising goals is to define your key performance indicators (KPIs). These are the metrics that reflect how well you are achieving your desired outcomes. For example, some common merchandising KPIs are sales, margin, sell-through, inventory turnover, conversion rate, average order value, and customer satisfaction. You should choose the KPIs that are relevant to your specific goals, such as increasing revenue, reducing costs, optimizing inventory, or enhancing customer loyalty.

2 Set your targets and benchmarks

The next step is to set your targets and benchmarks for each KPI. A target is the desired level of performance that you want to reach within a given time frame, such as a month, a quarter, or a year. A benchmark is the standard of comparison that you use to evaluate your performance, such as the industry average, the previous period, or a competitor. You should set your targets and benchmarks based on your historical data, market research, and strategic analysis.

3 Collect and analyze your data

The third step is to collect and analyze your data on a regular basis. You need to have a reliable and accurate system for gathering and storing your data from different sources, such as your point-of-sale system, your inventory management system, your e-commerce platform, your customer feedback system, and your marketing analytics tools. You also need to have a method for analyzing your data and identifying the patterns, trends, and insights that can help you understand your performance and optimize your merchandising decisions.

4 Report and communicate your results

The fourth step is to report and communicate your results to your stakeholders, such as your managers, your team members, your suppliers, and your customers. You need to have a clear and concise way of presenting your data and highlighting your achievements, challenges, and opportunities. You can use various formats and channels for reporting and communicating your results, such as dashboards, scorecards, reports, newsletters, emails, or meetings.

5 Review and adjust your actions

The final step is to review and adjust your actions based on your results and feedback. You need to have a process for evaluating your performance and identifying the strengths, weaknesses, opportunities, and threats that affect your merchandising goals. You also need to have a plan for implementing the changes and improvements that can help you achieve your goals more effectively and efficiently. You should monitor the impact of your actions and track your progress over time.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?