Retail Implementation Review: Maximizing Customer Satisfaction
Retail Implementation Review
The review of implementation should never be made arbitrarily, or for entertainment purposes at the point of sale, but should prioritize providing customer satisfaction and greater profitability. We must not forget that if you want to convey to customers a picture of continuous renewal, changes, and surprises, you should use the header of a gondola, the islands, and other promotional techniques and animation facilities.
Obtaining Information Needs
To effectively review implementation, you need information on:
- Information on the profitability of products.
- Index of interest in the establishment by the product.
- Index of attraction of the products.
- Information on the profitability of different areas of the retail outlet.
- Home Sales by area.
- Indices of traffic control zones.
- Information on the buying behavior of customers.
Study of Customer Behavior
A. Index of Interest in the Establishment by Products Classified
Classify products based on their interest to the establishment by assigning an index to each product, which can vary on a scale from 0 to 100, where 100 is the highest and 0 the lowest.
A simple method to objectively evaluate the interest of each product for the establishment is in a graph REPRESENTED sales and profits of the products considered as the origin of coordinates taking the average value of sales and profits of such products.
Product Categories:
- Star-Products: Product already established that apply to sell campaigns, stage of growth.
- Cow-Products: Product in maturity, is sold by itself.
- Question-Products: New product introduction stage.
- Dog-Product: Stage in decline.
The result of the classification is to define a target: the most interesting products for the establishment should be placed in the more vendors if these products are not profitable in themselves and in less time if they are selling. The aspects to be taken into account in the calculation of this index are:
- Rate product families and no references.
- Work with the average performance of sales, margins, and profitability of the family.
- Consider the same period of time to compare the results of all the families of the set.
B. Attraction Index
Identifies which products are the most attractive products to an establishment. These are products for which the client comes to a point of sale with purchase intent.
Differences in the degree of attraction:
- We performed a survey to a certain number of randomly selected customers at the entrance to the store and asked what products they intend to buy, checking her out if they have purchased or not.
- We performed a survey at the entrance and then tracks the client to exit.
- It takes an ABC sales.
Calculation of Attraction:
Index A
Customers who buy
——————————- X100
Total customers
Index B
Those who have bought
—————————– X100
Customers asked
Calculation of Sales of the Establishment ABC
Sales ABC analysis to identify the products are the best-selling and will be to attract customers to the point of sale.
ABC to classify the products into 3 categories:
- a) Products are well known and can be found at many locations.
- b) Product B are less known and are subject to normal competition between institutions.
- c) Product C are little known and used by the facility for competitive differentiation.
Index Movement
Number of customers who pass by an area
IC = ——————————————–
Number of customers entering the store
Attraction Index
Number of customers who stop in front of an area
IA = —————————————
Number of people who pass through the area
Shopping Index
Number of customers buying in an area
Ico = ——————————————–
Number of customers who stop in the area
The New Implementation of the Establishment
- The reintroduction in the regular customer confusion and tension in not easy to find the product you are looking for.
- The cost of the linear rise faster than the gain from the increased sales generated by the new implementation.