A retail dashboard is a performance tool to visualise and report all important retail KPIs in one central interface and turn this collected data into actionable insights. Among other things, it empowers retailers to identify consumer patterns, enhance stock management, lower rate of returns and ultimately increase sales as well as profitability.
More and more industries are not only seduced by data collection, but can also take an incredible advantage out of it - and the retail industry is one of them. It is an extremely data-driven sector that needs the maximum information it can get at any minute. From there, naturally comes the need of business retail dashboards, aggregating the various KPIs you are tracking to give you the pulse of your company.
You can use the retail dashboard templates above to identify customer’s patterns and adapt your strategies appropriately. First of all is to evaluate the Total Customers your business is dealing with, which you can parallelise with the Total Visitors in the case you have an online shop. From there, you can analyse the number of units they purchase on average for each transaction and how much an average transaction costs them. Be careful to analyse this last KPI in its context, as the Average Transaction Price can be biased if one customer made a very expensive purchase, inflating the average figure; same goes with the Average Units per Customer. This is why measuring these metrics at different periods of time and visualising them together in one single graph is interesting, in order to have a bigger picture of their evolution.
Once you have a global overview of your business and your customers purchasing habits, you can focus on your items and stock. To always have the right items at hand and avoid stock-outs, setting up a list of the top-5, top-10 or more best-seller articles is a good move. That way, you can anticipate your inventory and avoid back orders, that let customers unsatisfied and harm your image as much as stock-outs. Monitoring your Out of Stock (OOS) items is a priority to maintain your business on top of its performance. If you are facing high stock outs or long stock outs periods, you should be concerned on the efficiency of your inventory and supply chain management. In parallel, setting up a list of the Top-articles by Revenue can also be interesting for you to see what are the most profitable and if they also are the most easily sold.
Finally, the retail store dashboard example above provides you with data on your customers. This is a great insight to get as that will help you adjust and adapt your marketing campaigns and the different communication channels you have. In our example breaking down your Sales Volume by Division will tell you that women are your first point of revenue. You may then create specific campaigns designed to your different targets, according to their demographics and purchases habits, analysed as previously. This is important for a high customer retention, as usually generating revenue from existing customer is cheaper than acquiring new ones. Another way to analyse your sales can be by location. Whether you have an online or physical store, gauge your performance across cities, countries or regions over time. Not only will you know the dynamic of your stores during certain periods, but you can also compare them for improvement purposes. Indeed, if two of them have similar sales behaviour and similar customers’ demographics, you can try to implement A/B testing campaigns, in offering discounts, promotions, sales or other marketing initiatives in one of the store, and see how it performs in parallel of its similar counterpart. Thanks to these insights, you may launch various campaigns across your stores and increase sales and revenue.
On a more order-centred perspective, you will find on this retail dashboard example KPIs related to customers, their orders, and how there are managed. It is an interesting parallel to make since the management of your orders and, by extension, your supply chain, directly affects your customer satisfaction even if you have a strong relationship and good customer service to back up. Your retail business wants to sell more items while retaining more customers or stay competitive, and a dashboard like this one is here to help.
As previously mentioned in the Retail Store dashboard, the Customer Retention is an important metric to track. It indeed tells you a lot on how good you are at keeping clients in the long run, enabling you to develop a certain brand loyalty. Generating revenue from existing customers will be less expensive for your business than acquiring new ones. To maintain this figure as high as possible, you can implement special offers for returning customers, discounts, unique sales, etc. This metric is to be taken in its context though, as the nature of your retail business will affect it greatly.
Turning now to the orders placed by your customers, a first interesting retail KPI to measure is the Back Order Rate. It evaluates the amount of orders that cannot be fulfilled when a customer places an order. This figure is to be maintained as low as possible in order to avoid customer frustration. Again, considering this metric in its context is key: a high back order rate can translate inefficient inventory management or production process, but it can also say that you are witnessing an unexpected rise in sales! This good news should of course be followed but an adjustment to avoid a sudden drop, if the orders cannot be fulfilled on time: such drop would then affect the ratio that would decrease. However, a decreasing ratio can also show an improvement in your inventory management. As always when manipulating metrics, it is important to read them in their context!
This retail dashboard focuses then on the Rate of Return of your orders, that is to say the number of orders that any client sends or brings back. This is once again, a ratio that is better to keep low: returns are costly due to an additional processing using labour, or due to defect or damage that makes the item unusable, or to be sold at a price that will not make it profitable. The rate of return can also be due to unpicked packages at the post office or at home: a good strategy to implement to avoid these inconvenience is to narrow down the Average Delivery Time to let your customer know as precisely as possible when he has to be home for the pick-up. Once you have performed a benchmark on your returns rate over time, you may set a target ratio to achieve. Likewise, you can assess your returns breaking them down by category, so as to have an idea on the type of items that come back and try to understand why.
Our final retail dashboard template will be more focused on online retailing. With a business like online retail, data collection is easier and abundant. In today’s connected economy, consumers are more knowledgeable of competitors than ever. Besides, they are surrounded by many different ways to shop, which gives them all the more opportunity to change and makes it harder to build loyalty. Hence the need to be even more rigorous and creative to favour customer satisfaction and retention, and this is where data analysis steps in.
With retail dashboards like this, you have all the KPIs you need to track at your fingertip, gathered on one efficient overview. Starting with an estimation of the Total amount of Orders, you have a rough size of what your business deals with over the year. You can calculate an Average Orders per Customer to have an idea of their behaviour, but this metric is better tracked over short and long time periods, and compared respectively, so as to have the a more reliable average.
Once you know you’re the Total Orders your business deals with, it is interesting to evaluate the Perfect Order Rate out of it. It measures the efficiency of your whole deal-to-delivery process, and the performance of your supply chain, in achieving the orders of your customers without any problem. A perfect order starts when the customer places one which is not back order, and finishes when he or she picks it up in perfect state: no incident occurred on the way. Inaccuracies, damages, defects, loss or return will harm your image and increase unsatisfied customer, as well as generate avoidable expenses. So, after evaluating your perfect order rate over a certain time, set a target to reach, and keep in mind that the higher is this rate, the better.
In case of returns, the important thing to do is to find out why. Search and benchmark the Return Reasons over your customers so that you have all the keys in hand to act accordingly. Be it a damaged item, a late delivery or an unfitting article, you need all the insights you can get to take action and reduce your Rate of Return. Like many other metrics, the Return Reasons is to be parallelised with similar, complementary ones; here with the Perfect Order Rate and the Return Rate for instance. As soon as you have assessed and understood these reason, an idea could be to implement specific return policies.
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