Not that long ago, the performance of a store was measured by foot traffic, sales, units per transaction, conversion, profit and growth. Online stores were similar, tracking visits, repeat customers, sales, AOV (average order value), average basket size, time on site, cost per conversion and more.
While these are still valid and important KPIs, the new wave of retail requires a more sophisticated and holistic view to measuring performance. A “store” is no longer a single shopfront, or a single online store. Most retailers sell both online and in a physical retail store, and many sell via multiple sales channels – in fact, 41% of online spending globally is via Marketplaces.
Shoppers are now more digitally savvy. A “sale” is not as simple as a customer walking into a store and making a purchase, and so KPIs shouldn’t be structured in such a narrow way. Today, shoppers use multiple channels to complete a single transaction, bouncing around online and offline. They may start their journey with a search or on social media, switch between ecommerce stores, marketplaces, apps, review sites, and may even browse a physical store. 85% of customers start a purchase on one device and finish it on another, and this needs to be considered when looking at store performance.