What Key Performance Indicators Measure Customer Experience?

In case you’re interested...

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What are the key performance indicators you can look at when evaluating your customer experience performance?

There are three fundamental KPI's that are going to give you an understanding of how well you are performing inside your customer experience?

Top-line sales...

There is a bunch of different things here that you could get caught up in with why your top line sales are decreasing. In my experience over the years, I always start with the customer experience, because what the results have shown me, is your staff, unfortunately, can be what is impacting your customer experience and therefore impacting your sales.

If your sales have dropped for some reason, let's use this as a trigger to look at what's going on underneath it. We are not going to get caught up in product or all the other possibilities that there are, we're going to look internally, and we're going to have a look at what's going on inside of our business with our team, because this will deliver quickest result.

Now, you can slice and dice this in all kinds of different ways. If you're lucky enough that you've got a fairly consistent team in your business over the last 12 months, you can look at a 12-month period. Or you can break it down and look at a quarter or six months. If you've got the data and you've got the consistency, then I'd be having a broader look at 12 months as a minimum.

Average spend per transaction...

Now, this will tell you a lot. If it's decreasing, I would drill down a little bit more and look at, if it's in a case of brick and mortar, have a look at the roster through the time period that you're choosing to measure, and start looking at each staff member in the business, and who's average transaction has decreased.

That will allow you to see individual performance, which you can correct quickly to get a result.

This is what my clients inside my Retail Rebel Program are looking for. They want to be able to get facts that are going to empower them to be able to go and make decisions and impact their results quickly.

Items per transaction...

You may have an average item per transaction of two, and when you drill down and start looking at individuals, you can see individual performance at 1.1 items per transaction. You can see very specifically individuals within your team that you need to train or performance manage.

If you are offering an amazing, consistent customer experience that has customers coming into your store, where they are being rewarded with an experiential experience in store, yet you are still underperforming, these are the three KPIs for you to have a look first.

One. Top-line sales.

Two. Average transaction or your basket size.

Three. Items per transaction.

Have a look at these over the coming weeks, share your results below. Tell us what you find. Let's start unfolding it and really getting in and digging in and getting our hands dirty and having a look at what the evidence is there, so that we can unfold further areas that are going to really benefit you in increasing your sales, your average transaction, and your items per transaction. All things that are easy for you to go and start doing straight.

If you'd like a Retail Strategy Review Session click here and book a time and we can map-out the right Retail Strategy for your business.