What are the most effective KPIs for digital transformation in retail?

Think of NPS as the basic ingredients of a cake - essential, foundational, but not the full recipe. The real-time in-app reactions? That's the rich icing, the colorful sprinkles, and the cherry on top! It's where the taste-test happens and where you get immediate feedback. If NPS gives you the basic framework of how well you're doing, real-time in-app reactions are your taste-testers, giving you instant insights into every bite of the customer journey. Just as you wouldn't judge a cake by its ingredients alone, don't settle for just the NPS. Savor the full feedback flavor with in-app reactions! ????

The launch of a retail media network, is a great example of digital transformation in retail. Retail media is advertising inside the e-commerce equation: you monetize the window shopping. With retail media, an e-commerce site or marketplace now has 2 objectives: 1) optimize the path to purchase 2) monetize the path to pirchase And while the stakeholders involved in this digital transformation are fighting to establish the balance between them, they may be deteriorating a paramount third objective for their business, namely the CX: customer experience and satisfaction. From this perspective, customer satisfaction is an essential indicator to be monitoring at each stage of the transformation.

Consumers are irrational and emotional. The most effective KPIs in digital retail are those that decipher what John Maynard Keynes coined "animal spirits." Track Customer Acquisition Cost—your marketing's price tag. Watch Conversion Rates—they're your brand's allure index. Boost Average Order Value; it's trust translated into dollars. Guard Customer Retention—that's loyalty's real scoreboard.

In retail digital transformation, measuring success revolves around key performance indicators (KPIs). First and foremost, customer satisfaction is essential, assessed through surveys, ratings, reviews, and feedback forms to ensure alignment with customer expectations. Sales and revenue growth, particularly in online channels, offer insights into financial impacts. Customer retention and loyalty indicators showcase the long-term effects of digital strategies. Monitoring website and app analytics reveals user behavior, making optimization easier. Efficient inventory management and streamlined supply chains lead to cost savings. Conversion rates and user experience metrics reflect the effectiveness of turning visitors into customers.

Few of the key features and the most underrated steps of Digital Transformation is Operations: 1. Transforming the cash collection process - this resolves a huge amount of documentation process and saves time which can be used to add business hours: both increasing sales and saving costs. 2. Automating Supply Chain - Reporting dashboards to show cycle time, inventory management which will enable stakeholders to make quick decisions. 3. Indent: Closing of ident with cash collection and automated supply chain can help increase a lot of business hours.

Don’t forget that digital transformation shouldn’t only be measured on the digital side of the equation. When digital experiences are tuned up, they have an impact on offline behaviour. In some cases it can be negative if for example the user experience has been so bad that you discredit the entire brand. In other cases, digital can influence offline behaviour as in the ROPO effect: research online purchase offline which is often quite high for click-and-mortar businesses. So remember to measure the offline effect of your digital changes too!

When it comes to high-ticket sales, a war between marketing and sales is bound to happen. Customers don't usually buy what they initially came for, which is why the link is broken in the data.