How do you measure the success of your merchandising efforts?

Sales metrics are indeed vital indicators of merchandising success. However, it's important to remember that these numbers are not just figures, they tell a story. They can provide insights into customer behavior, market trends, and the effectiveness of your strategies. For example, a consistent sales uplift of promoted items could indicate a successful marketing campaign or a product that resonates well with your customers. Always dig deeper into these metrics, they're your compass in the vast sea of business intelligence. ??????

One thing I've found helpful is to analyse merchandise by product line, category and sub category at regional level. Delve into which items contribute the most to dollar value gross profit, and not be deceived by high gross margin on items that require more effort to merchandise, and contribute the least to dollar value gross profit.

Measuring the success of merchandising efforts 1. Sales Revenue: Measure the increase in sales. 2. Conversion Rate: Track the percentage of visitors who make a purchase. 3. Average Order Value (AOV): Monitor the average amount spent per order. 4. Sell-Through Rate: Measure how much inventory is sold. 5. Gross Margin Return on Investment (GMROI):Measure profit against investment. 6. Customer Lifetime Value (CLV): Track total revenue from a customer. 7. Customer Satisfaction: Use feedback to measure satisfaction. 8. Return Rate: Monitor product return rates. 9. Foot Traffic: Measure physical store visits. 10. Social Media Engagement: Monitor engagement levels. 11. Brand Perception: Track changes in brand perception and loyalty.

Definitely sales metrics can be considered as merchandising success indicator. But other factors should also be measured like profitability, total income , transaction count, brand share, promotion contribution to sales, traffic lift and basket size conversion . Sales alone at the expense of margin erosion may not be enough to benchmark of full success. Clear goals with specific objectives covering at least 4 -5 KPIs can solidify a good scorecard. Merchandising is a dynamic role and answerable to more than one line in the P&L.

Look beyond just sales. Consider how many shoppers buy after browsing (conversion rate) and how interested they are (dwell time, click-through rates). If some products consistently sell better, figure out why. Better placement, higher demand, or just catching their eye can all be reasons. Tracking these metrics over time will show trends and help you understand how well your merchandising strategies are working in the long run.

Já participei de alguns projetos envolvendo estoque e é realmente muito importante a analise a rota??o de estoque para entender como eficientemente os produtos est?o sendo vendidos em rela??o ao estoque disponível. Lembro que um alto índice de rota??o indica uma boa eficiência na gest?o de estoque e uma resposta positiva às suas iniciativas de merchandising.

Ideally, a business wants a high inventory turnover rate, but it should be within the context of their industry. A grocery store will naturally have a higher turnover rate than a furniture store. By comparing your inventory turnover ratio to industry benchmarks, you can identify areas for improvement. Monitoring inventory turnover over time also helps you identify trends and potential issues before they become significant problems.

Inventory turnover is a crucial metric for measuring the success of merchandising efforts. It indicates how quickly a company sells its inventory over a specific period, usually a year. A higher inventory turnover ratio suggests efficient inventory management and successful merchandising, as it signifies that goods are selling rapidly and not sitting idle in storage. Conversely, a low inventory turnover may indicate overstocking or slow-moving products, highlighting areas for improvement in merchandising strategies.

The story doesn't end there. Understanding the nuances behind these numbers can provide deeper insights. For instance, seasonal fluctuations might affect turnover rates—holiday items may have low turnover most of the year but spike during peak seasons. By keeping a close eye on inventory turnover, you can make informed decisions about product assortment and inventory levels. It's about maintaining a dynamic balance between supply and demand, ensuring that your shelves are stocked with the right products at the right times. This not only optimizes sales but also enhances customer satisfaction by consistently meeting their needs with fresh and relevant offerings.

Eu concordo parcialmente, a ineficiência do giro n?o é definida apenas pela má sele??o do item. Outros fatores impactam, tais como: Compra sem esta clara a estratégia da venda (combate, reposi??o, aposta, inova??o, etc.) Uma aquisi??o tomada por impulso sem observar o cenário do mercado (posicionamento pre?o, concorrência, share) Acompanhamento da venda . Pois muitas vezes o gestor se depara com mercadoria parada no estoque ué n?o está no ponto de venda Virada de mercado que leva a uma tomada de decis?o rápida e a morosidade de resposta pode ser muito negativa neste giro.

What I have seen is that the value of the “voice of customer” has a direct and impactful bearing on the merchandising efforts. This is one of the most direct ways to re-validate the success of merchandising efforts. If we look at the life cycle of any product or customer value chain, customer feedback takes utmost precedence in making a product successful. The concept of MVP (Minimal Viable Product) came into existence because of the value given to customers feedback. Align your product roadmap to customers inputs and you will see/feel rhetorical difference!

By analyzing customer feedback, retailers can understand which products resonate with their target audience and how effectively they are displayed. This feedback loop allows businesses to constantly refine their merchandising strategies to optimize product placement, signage, and overall store layout. Ultimately, prioritizing customer feedback in merchandising decisions fosters customer satisfaction, loyalty, and increased sales.

I incorporate customer feedback into my sales performance analysis to determine the effectiveness of my merchandising. Customer perceptions are revealed through surveys and reviews, which confirm effective strategies or point out areas in need of development. We improve the shopping experience, which in turn increases sales and cultivates customer loyalty, by coordinating merchandising efforts with customer preferences.

In our experience, customer feedback is essential for measuring merchandising success. Surveys, reviews, and direct interactions offer invaluable insights into customers’ perceptions and their purchasing decisions. Positive feedback validates our efforts, while negative responses provide opportunities for adjustment and improvement. Additionally, conversion rates are a critical metric, indicating the percentage of visitors who make purchases, reflecting the effectiveness of our merchandising strategies. Collectively, understanding these aspects helps us tailor shopping experiences to better meet customer needs and preferences, driving sales effectively.

In my overall journey, I'd like to say that: 1. Customer feedback is gold ??: Surveys, reviews, and direct interactions unveil invaluable insights into merchandising success. 2. Validate efforts with positives ??: Positive feedback affirms your strategies and encourages continuity. 3. Embrace negativity for growth ??: Negative comments are pathways to improvement and refinement. 4. Tailor experiences for customers ???: Understand needs and preferences to drive sales and foster loyalty.

A análise de visita e compra ou utiliza??o de um servi?o ou produto traz um benefício grande para entender a penetra??o no mercado assim como entender a concorrência, obtendo respostas como: será que meu produto é bom?é inovador ou somente atende o que mercado já tem e n?o faz diferen?a. Essa é uma oportunidade boa para inovar, passar confian?a na busca do crescimento.

Measuring merchandising success hinges on a critical metric: conversion rate (sales/visitors). A high rate indicates compelling displays that convert browsers into buyers. Track conversion rates for your entire store and individual sections. Analyze high-performing areas to identify successful strategies, like product placement and display techniques. Replicate these tactics throughout the store to foster a consistent customer experience. Additionally, optimize the customer journey by understanding traffic flow and strategically placing products to guide purchase decisions. Through conversion rate analysis and ongoing optimization, you can ensure your merchandising efforts continuously drive sales and brand engagement.

Conversion rates are key indicators of prospect (upsell) and customer’s behavior. Useful for validation purposes and surely to challenge all perceptions! As soon as you get a grip on the CTA’s you’re on!

Taxas de convers?o s?o métricas que devem ser analisadas além do fator vendas, mas sim, em toda a estrutura comercial & marketing, desde campanhas de lan?amentos educacionais para crescimento da base, ebooks, videos e outros. A empresa funciona como um organismo vivo, n?o adianta ter bra?os fortes se o cora??o falhar...

New Customer Acquisition is a big leader when it comes to get the pulse check of the success metric, If your merchandise is really good, please check the new customers and get deeper in the insight! dig deep check the graphs if its progressive or regressive! Check if they are coming back to us, there average ticket size can also determine if we are doing good with target audience!

From our experience, monitoring market share is a comprehensive way to assess the impact of merchandising efforts. It provides insight into our total sales percentage within the category and our brand’s position against competitors. An increase in market share signifies that our merchandising strategies are not only effective but also resonate well with customers, often outperforming rival brands. Additionally, leveraging Business Intelligence (BI) insights can further enhance our understanding of market dynamics and consumer behavior, helping us fine-tune our approaches and sustain competitive advantage.

O monitoramento da participa??o é imprenscidivel, pois somente medindo que se sabe os resultados para uma tomada de decis?o de ajuste sempre que necessário. Perda de share ou estagna??o deve ser sempre analisada para que a estratégia de ajuste seja feita sempre de forma que se mantenha sempre em crescente diante de tantos entrantes no mercado.

???? Ao utilizar ferramentas que medem a participa??o do mercado em rela??o à concorrência, podemos obter insights valiosos como: ?Identifica??o dos Players: Permite detectar a entrada de novos concorrentes no cenário. Se um novo “player” está ganhando terreno, isso pode representar um risco para a posi??o da sua empresa. ?Observa??o das Estratégias da Concorrência: Nos ajuda a entender as estratégias dos concorrentes. é possível identificar se est?o lan?ando novos produtos, ajustando pre?os ou trabalhando no posicionamento de suas marcas. Com base nas análises de market share, é possível tomar decis?es ágeis. Se a concorrência está ganhando espa?o, sua empresa pode ajustar suas estratégias para manter ou ampliar sua fatia de mercado.

In my business domain, of cyber security, there is still a lot money spent ‘insurance’. So market share adds to feeling of trustworthiness, offering accountable procurement, their selection must have been a sensible one. Downside is lots of customers like specific delivery and attention, these targets might select a provider with less marketshare.

In my HR banking view (100k employees), insights help us to translate a feeling about the workforce into a true observation. They help us to identify typical dysfunctions, for example, in the absenteeism rate. A significant change (in either direction) in it could be a sign of good (to emulate) or bad (to avoid) management behavior.

No ambiente competitivo atual, confiar em uma solu??o de BI oferece uma vis?o precisa das estratégias de merchandising e vou explicar o motivo, analisar grandes volumes de dados, detalhando tendências de mercado, comportamento do consumidor e desempenho de produtos. Identificam rapidamente oportunidades de melhoria e áreas onde o merchandising pode ser mais eficaz, ter Dashboards dinamicos permitem decis?es fundamentadas, reduzindo erros e aumentando a eficiência estratégica, e possível prever com precis?o vendas futuras e tendências de consumo, permitindo um planejamento assertivo, além de ter Insights atualizados possibilitam ajustes em tempo real, alinhando campanhas com objetivos de negócios.

Tive a oportunidade de trabalhar em alguns projetos de BI direcionados a métricas de vendas e estoque. Na minha experiência, identifiquei a necessidade de se controlar através dos dashboards o giro de estoque e também o mix de produtos diferentes comprados pelos clientes. Desta forma é possível identificar a eficácia do posicionamento dos produtos dentro do mercado, saber quais clientes compram ou n?o meus principais itens e identificar oportunidades de vendas. Mas para que isso seja eficiente, é importante olhar com aten??o para o estoque de cada produto, identificando possíveis falhas de atendimento por baixo estoque ou super estocagem de produtos com baixa aderência.

????Os insights obtidos por meio de ferramentas de BI s?o verdadeiramente poderosos. O dinamismo presente no BI é fundamental, nos permite analisar dados de maneira mais dinamica, identificando padr?es, tendências e correla??es. Quando olhamos para dados de forma estática, muitos detalhes podem passar despercebidos. O BI nos ajuda a contextualizar esses dados que “gritam” para o negócio quando s?o interpretados corretamente, revelam informa??es valiosas sobre o que está acontecendo: desde mudan?as sutis até movimentos significativos no mercado. Inteligência Artificial, a Expertise Humana e o BI, quando atrelados potencializa sua capacidade de análise e é essencial para interpretar os insights gerados e tomar decis?es estratégicas.

Consolidar dados em ferramentas de BI é necessário para o sucesso, entender o comportamento de seu negócio e tendências. O importante é que tratar todos os dados relevantes diariamente possibilitando montar Dashboard por área, produto, cliente e espacializa??o e definir as estratégias de merchandising.

In addition to what's been discussed, it's important to consider how external market factors and consumer trends influence merchandising success. For instance, seasonal changes, economic shifts, and changing consumer preferences can significantly impact sales performance and market share. Understanding these elements through market research and adapting quickly to changes can enhance merchandising strategies further. This adaptability, combined with robust BI tools and customer feedback, ensures that our merchandising efforts are not only reactive but also proactive, keeping us ahead in a competitive landscape.

Growth assessment is the best KPI. Calculating sales revenue / units sold week over week, month over month, year over year metrics comparison are a great indicator.

Something important about consolidation (in HR banking view) : no matter if the insights have'nt the right definition (sometimes, it can be challenging to generate them due to the diversity of local practices), the most important think is our ability to follow them in ages. Every variation is significant.

O uso de ferramentas como o Power BI auxiliam muito na constru??o de relatórios dinamicos, conseguem transformar os dados em mais do que números em uma tela, os transformam em insights poderosos e fundamentados. Quando alinhamos as ferramentas com a expertise e conhecimento de mercado conseguimos chegar a resultados incríveis.