How to Connect Data Analysis and Visual Merchandising in Daily Business

Tracking sales and key performance indicators (KPIs) in your retail stores is crucial for creating a successful business. While following assumptions and trusting your instincts can occasionally work, basing your strategies on proven data ensures a higher probability of success. It also provides solid evidence to present to the management team.

How to set your retail teams up for success:

1. Focus on the Most Relevant KPIs

Tracking sales can encompass a wide range of data, which can be overwhelming and time-consuming for store staff. Simplify this by concentrating on the most relevant data and challenge your team to work on specific KPIs. For example, if your traffic and conversion rates are high but sales targets remain unmet, focus on increasing your average order value (AOV) or units per transaction (UPT). Change your focus depending on the circumstances and your objectives. A tool specifically developed and adapted to your precise needs will help in gathering and analyzing only what matters.

2. Create a Regular Process

Establish a routine process for your retail teams. Define the frequency and periods for tracking data, assign responsibilities, and determine when to share results. Consistency in the process and comparing the same time periods is key to obtaining reliable information.

3. Train Your Team

Data tracking can be intimidating without proper knowledge. Provide training on how to calculate, analyze, and present sales numbers. Ensure that everyone understands the metrics, their impact and how they can be pushed. A small amount of training will go a long way to ensure that your team gains the needed knowledge and sufficent assurance to work with sales data.

4. Connect Sales Data and Visual Merchandising

Once the data has highlighted areas of improvement, you need to adjust product presentations to positively impact sales. Challenge your store teams with tasks such as creating inspiring mannequin outfits that include items with high stock levels, to move high inventory and improve your sell though rate. Or select best-selling products and cross merchandise them with complementary items to increase average order value or basket size. Examples like these and many more can be highlighted through a VM guideline that illustrates how to influence sales indicators with practical « how to » examples.

5. Offer Incentives

Keep your teams engaged and motivated by giving them opportunities to showcase their work to the management. Offer incentives for exceptional efforts and outstanding results.

Conclusion

The combination of data analysis and strategic VM allows for a more dynamic and responsive retail environment. Implementing a robust strategy for tracking sales data and key performance indicators is fundamental to achieving success in the retail business. By focusing on the most critical KPIs, establishing a regular process, and providing comprehensive training, you empower your retail teams to make informed decisions. But the key to success is using this data to develop strategies that help your teams find gaps to fill. 

This is where connecting sales data with visual merchandising ensures that product presentations effectively drive sales. A clear guideline on enhancing KPIs through various merchandising techniques is an invaluable tool.