Kpi's in Retail
Transform Operations, Enhance Productivity, and Drive Growth with Data-Driven Insights.
Business Question: How much sales amount has been generated from all sales?
Definition: The sum of all sales amount within a specific period.
Formula: Total Sales = Sum of Sales Amount
Calculation Example: If you sold $5,000 worth of products on Day 1 and $7,000 on Day 2, your Total Sales for the two days would be $5,000 + $7,000 = $12,000.
Business Question: How many units of products have been sold?
Definition: The total number of product units sold in a given period.
Formula: Total Quantity = Sum of Units Sold
Calculation Example: If 50 units were sold on Day 1 and 70 units were sold on Day 2, your Total Quantity for the two days would be 50 + 70 = 120 units.
Business Question: How much profit was made from all sales?
Definition: The total sales minus the total cost of goods sold (COGS).
Formula: Total Profit = Total Sales - Total Cost
Calculation Example: If your total sales were $12,000 and your total cost was $8,000, then your Total Profit = $12,000 - $8,000 = $4,000.
Business Question: How much did it cost to produce and sell the products?
Definition: The total cost of goods sold, including production and operational costs.
Formula: Total Cost = Sum of (Cost per Unit × Units Sold)
Calculation Example: If 120 units were sold and the cost per unit was $50, your Total Cost = 120 units × $50 = $6,000.
Business Question: What is the average cost per unit of product sold?
Definition: The average amount it costs to produce one unit of product.
Formula: Avg Unit Cost = Total Cost ÷ Total Quantity
Calculation Example: If your Total Cost is $6,000 and your Total Quantity is 120 units, your Avg Unit Cost = $6,000 ÷ 120 = $50 per unit.
Business Question: What is the average price per unit sold?
Definition: The average price at which one unit of product was sold.
Formula: Avg Unit Price = Total Sales ÷ Total Quantity
Calculation Example: If your Total Sales is $12,000 and your Total Quantity is 120 units, your Avg Unit Price = $12,000 ÷ 120 = $100 per unit.
Business Question: How much, on average, is returned in monetary value?
Definition: The average monetary value of returned products.
Formula: Avg Return Amount = Total Value of Returns ÷ Number of Returns
Calculation Example: If $2,000 worth of products were returned across 5 transactions, your Avg Return Amount = $2,000 ÷ 5 = $400 per return.
Business Question: How does the actual sales amount compare to the target sales amount?
Definition: A comparison between the actual sales amount and a predefined target sales amount.
Formula: Sales Target Achievement (%) = (Actual Sales ÷ Target Sales) × 100
Calculation Example: If your Target Sales is $15,000 and Actual Sales is $12,000, the Sales Target Achievement = $12,000 ÷ $15,000 × 100 = 80%. This means you achieved 80% of the target.
Business Question: How has the sales amount changed over time?
Definition: The pattern of sales performance over a specific time period, showing upward or downward movement.
Formula: Sales Trend = Comparison of Sales Amounts over Time
Calculation Example: If you sold $10,000 in Week 1, $12,000 in Week 2, and $15,000 in Week 3, the sales trend indicates a positive trajectory with increasing sales over time.
Business Question: How many stores are part of the operation?
Definition: The total number of stores across all locations.
Formula: Total Stores = Count of All Stores
Calculation Example: If there are 150 stores across the country, the Total Stores would be 150.
Business Question: How many stores are currently open and operational?
Definition: The total number of stores that are open and running.
Formula: Open Stores = Count of All Open Stores
Calculation Example: If out of 150 total stores, 130 are currently open, the Open Stores would be 130.
Business Question: How many stores are currently closed or not operational?
Definition: The total number of stores that are closed or not in operation.
Formula: Closed Stores = Count of All Closed Stores
Calculation Example: If out of 150 total stores, 20 are closed, the Closed Stores would be 20.
Business Question: What is the average number of stores in each city?
Definition: The average number of stores distributed across operating cities.
Formula: Avg Stores Per City = Total Stores ÷ Number of Cities
Calculation Example: If there are 150 stores operating across 30 cities, Avg Stores Per City = 150 ÷ 30 = 5 stores per city.
Business Question: In how many cities are the stores currently operating?
Definition: The total number of cities where stores are currently operational.
Formula: Operating Cities = Count of Cities with Open Stores
Calculation Example: If your stores operate in 30 different cities, Operating Cities would be 30.
Business Question: How many different brands are represented in the store's inventory?
Definition: The total number of brands whose products are being sold across stores.
Formula: Total Brand Collaboration = Count of Unique Brands Sold
Calculation Example: If your stores sell products from 50 different brands, the Total Brand Collaboration would be 50.
Business Question: Which brand products generate the most sales revenue?
Definition: The top 10 brands ranked by the highest sales revenue.
Formula: Top Selling Brands = Rank Brands by Sales Amount (Top 10)
Calculation Example: Brands X, Y, and Z might be the top 3 out of the top 10 brands based on their sales performance in terms of revenue.
Business Question: Which stores generate the most sales revenue?
Definition: The top 10 stores ranked by the highest sales revenue.
Formula: Top Selling Stores = Rank Stores by Sales Amount (Top 10)
Calculation Example: Stores A, B, and C might be the top 3 out of the top 10 stores based on their sales performance in terms of revenue.
Business Question: How do the cities compare in terms of sales and store performance?
Definition: Visualization of key performance indicators (like total sales, profit, or quantity sold) mapped to different cities.
Formula: City Performance = Mapping of KPIs (e.g., Sales, Profit) to Cities on a Map
Calculation Example: Cities A, B, and C might show different performance levels, with City A having the highest total sales while City C might have the highest profit margin.
Business Question: How much stock is currently available in the inventory?
Definition: The total quantity of items currently available and stored in the inventory.
Formula: On Hand Quantity = Sum of All Items Available in Inventory
Calculation Example: If you have 5,000 units of various products available in inventory, your On Hand Quantity would be 5,000 units.
Business Question: How many items have been ordered but are yet to be received?
Definition: The total quantity of items that have been ordered from suppliers but haven't arrived yet.
Formula: On Order Quantity = Sum of All Items Ordered but Not Received
Calculation Example: If you have placed orders for 3,000 units of different products from suppliers, your On Order Quantity would be 3,000 units.
Business Question: How much stock is being kept as a safety buffer?
Definition: The minimum quantity of stock maintained to avoid running out of inventory in case of demand spikes or supply delays.
Formula: Safety Stock Quantity = Predefined Buffer Stock Level
Calculation Example: If your company maintains 1,000 units of safety stock to prevent stockouts, the Safety Stock Quantity would be 1,000 units.
Business Question: On average, how many days do items remain in inventory before being sold or used?
Definition: The average number of days an item stays in stock from the time it is received to when it is sold or used.
Formula: Avg. Days in Stock = Total Days Items Are in Stock ÷ Total Quantity of Items
Calculation Example: If 10,000 units were in stock for a total of 50,000 days, Avg. Days in Stock would be 50,000 ÷ 10,000 = 5 days per item.
Business Question: What is the maximum amount of time an item has stayed in inventory?
Definition: The longest duration that any single item has remained in inventory before being sold or used.
Formula: Max Days in Stock = Maximum Number of Days an Item Stays in Stock
Calculation Example: If the longest any item has stayed in stock is 45 days, then the Max Days in Stock is 45 days.
Business Question: What is the shortest amount of time an item has stayed in inventory?
Definition: The shortest duration that any single item has remained in inventory before being sold or used.
Formula: Min Days in Stock = Minimum Number of Days an Item Stays in Stock
Calculation Example: If the shortest duration any item has stayed in stock is 2 days, then the Min Days in Stock is 2 days.
Business Question: How have the different inventory quantities changed over time?
Definition: A trend line chart showing how On Hand Quantity, On Order Quantity, and Safety Stock Quantity have evolved over time.
Formula: Quantity Trends over Time = Plot of On Hand, On Order, and Safety Stock Quantities Over Time on a Line Chart
Calculation Example: You might notice a trend where On Order Quantity spikes at the beginning of each year while Safety Stock remains relatively stable throughout the period.
Business Question: How are inventory quantities distributed across different product categories?
Definition: The total inventory quantities categorized by different product categories.
Formula: Quantities by Product Category = Sum of Quantities Grouped by Product Category
Calculation Example: If Category A has 2,000 units, Category B has 3,500 units, and Category C has 1,500 units, you can compare the stock levels across different categories.
Business Question: How are inventory quantities distributed across different brands?
Definition: The total inventory quantities grouped by brand.
Formula: Quantities by Brands = Sum of Quantities Grouped by Brand
Calculation Example: If Brand X has 1,000 units, Brand Y has 2,000 units, and Brand Z has 3,000 units, you can compare the inventory levels across brands.
Business Question: How are inventory quantities distributed across different types of stores?
Definition: The total inventory quantities categorized by different store types (e.g., retail, online, reseller).
Formula: Quantities by Store Type = Sum of Quantities Grouped by Store Type
Calculation Example: If retail stores have 5,000 units, online stores have 2,000 units, and wholesale stores have 3,000 units, you can assess how inventory is allocated across store
types.
Business Question: How much sales amount has been generated from all sales?
Definition: The sum of all sales amount within a specific period.
Formula: Total Sales = Sum of Sales Amount
Calculation Example: If you sold $5,000 worth of products on Day 1 and $7,000 on Day 2, your Total Sales for the two days would be $5,000 + $7,000 = $12,000.
Business Question: What is the target sales amount for the given period?
Definition: The predefined sales revenue goal for a specific period.
Formula: Sales Target = Predefined Sales Revenue Target for the Period
Calculation Example: If your sales target for the quarter is $120,000, then the Sales Target is $120,000.
Business Question: How many units have been sold?
Definition: The total quantity of products sold within the defined period.
Formula: Sales Quantity = Sum of Units Sold
Calculation Example: If 5,000 units were sold during the quarter, the Sales Quantity would be 5,000 units.
Business Question: What is the target number of units to be sold for the given period?
Definition: The predefined target number of units to be sold within a specific period.
Formula: Sales Quantity Target = Predefined Target for Units Sold
Calculation Example: If the target is to sell 6,000 units in a quarter, the Sales Quantity Target would be 6,000 units.
Business Question: What is the total profit generated from sales?
Definition: The total profit after subtracting the cost of goods sold (COGS) from total sales revenue for the defined period.
Formula: Total Profit = Total Sales - Total Cost
Calculation Example: If your total sales revenue is $100,000 and your total costs are $70,000, the Total Profit would be $100,000 - $70,000 = $30,000.
Business Question: What is the target profit for the defined period?
Definition: The predefined profit goal set for a specific period.
Formula: Profit Target = Predefined Profit Target for the Period
Calculation Example: If the profit target for the quarter is $35,000, the Profit Target would be $35,000.
Business Question: How does the actual sales amount compare to the target sales amount?
Definition: A visual comparison of actual sales vs. target sales using a gauge chart to display performance against the target.
Formula: Sales Achievement = (Actual Sales ÷ Sales Target) × 100
Calculation Example: If the actual sales amount is $100,000 and the target sales is $120,000, Sales Achievement = ($100,000 ÷ $120,000) × 100 = 83.3%, which would be displayed on the gauge chart.
Business Question: How do sales and profit targets compare across different types of stores?
Definition: A breakdown of sales and profit targets by store type (e.g., retail, online, reseller).
Formula: Targets by Store Type = Comparison of Sales Target and Profit Target by Store Type
Calculation Example: Retail stores might have a sales target of $60,000 and a profit target of $20,000, while online stores may have a sales target of $40,000 and a profit target of $15,000.
Business Question: What are the sales and profit targets by product category?
Definition: A breakdown of sales and profit targets categorized by different product categories.
Formula: Targets by Product Category = Comparison of Sales Target and Profit Target by Product Category
Calculation Example: If Category A has a sales target of $50,000 and a profit target of $18,000, and Category B has a sales target of $70,000 and a profit target of $25,000, you can assess the performance across categories.
Business Question: How do the sales and profit amounts and their targets trend over time?
Definition: A line chart displaying the trend of actual sales, total profit, sales target, and profit target over time.
Formula: Sales & Target Trend = Plot of Actual Sales, Total Profit, Sales Target, and Profit Target Over Time
Calculation Example: Over time, you might see that actual sales are tracking close to the sales target in Q1, but in Q2, sales may fall short while profit might exceed the profit target.
Business Question: What is the average monetary value a customer brings over their entire relationship with the company?
Definition: The average amount of revenue generated by a customer throughout their relationship with the business.
Formula: Avg Lifetime Value = (Avg Purchase Value × Avg Purchase Frequency) × Avg Customer Lifespan
Calculation Example: If the average purchase value is $100, average purchase frequency is 5 times per year, and the average customer lifespan is 3 years, then Avg Lifetime Value =
($100 × 5) × 3 = $1,500 per customer.
Business Question: How often does an average customer make a purchase?
Definition: The average number of purchases made by a customer over a certain period of time.
Formula: Avg Purchase Frequency = Total Number of Purchases ÷ Total Number of Customers
Calculation Example: If 1,000 purchases were made by 200 customers in a year, then Avg Purchase Frequency = 1,000 ÷ 200 = 5 purchases per customer.
Business Question: How loyal are the customers on average?
Definition: A measure of customer loyalty, often calculated based on repeat purchases and engagement with the brand.
Formula: Avg Loyalty Index = (Repeat Purchase Rate × Avg Retention Rate) ÷ 2
Calculation Example: If repeat purchase rate is 80% and retention rate is 70%, Avg Loyalty Index = (80% × 70%) ÷ 2 = 75%.
Business Question: How satisfied are the customers on average?
Definition: The average satisfaction score given by customers, often collected via surveys or feedback forms.
Formula: Avg Satisfaction Rate = Sum of All Satisfaction Scores ÷ Number of Responses
Calculation Example: If 200 customers rated their satisfaction with an average score of 4.2 out of 5, the Avg Satisfaction Rate = 4.2/5 = 84%.
Business Question: How likely are customers to recommend the company or product to others?
Definition: A metric that gauges customer loyalty and satisfaction by asking customers how likely they are to recommend the company on a scale of 0-10.
Formula: NPS = % of Promoters (9-10 rating) - % of Detractors (0-6 rating)
Calculation Example: If 60% of customers are promoters and 15% are detractors, NPS = 60% - 15% = 45 NPS.
Business Question: How often do customers respond to surveys or requests for feedback?
Definition: The average percentage of customers who respond to surveys or feedback requests.
Formula: Avg Response Rate = (Number of Responses ÷ Number of Sent Surveys) × 100
Calculation Example: If 500 surveys were sent and 150 responses were received, Avg Response Rate = (150 ÷ 500) × 100 = 30%.
Business Question: What is the distribution of customer types (e.g., New, High Value, Medium Value, Low Value)?
Definition: A pie chart showing the breakdown of customers by segment type based on their purchase behavior and value.
Formula: Customer Segmentation = Percentage of Customers in Each Segment
Calculation Example: If 30% of customers are high value, 40% are medium value, 20% are low value, and 10% are new customers, the pie chart would represent these proportions.
Business Question: What percentage of customers are retained over a specific period?
Definition: The percentage of customers who continue to purchase from the business over a given time frame.
Formula: Customer Retention Rate = (Number of Retained Customers ÷ Number of Total Customers at Start) × 100
Calculation Example: If you had 1,000 customers at the start of the year and 800 are still purchasing from you by year-end, Customer Retention Rate = (800 ÷ 1,000) × 100 = 80%.
Business Question: How are the customers distributed across different age groups?
Definition: The percentage distribution of customers by age group (e.g., 18-25, 25-35, 35- 45, etc.).
Formula: Customer Demographics by Age Group = Count of Customers in Each Age Group ÷ Total Customers
Calculation Example: If 25% of customers are aged 18-24, 35% are aged 25-34, and 40% are aged 35-44, the chart would represent these percentages.
Business Question: How are customers distributed across different cities, and what are the key KPIs in each city?
Definition: A map displaying customer-related KPIs, such as total customers, average satisfaction rate, average retention rate, and average purchase frequency, by city.
Formula:
● Total Customers by City: Total Customers in Each City
● Avg Satisfaction Rate by City: Avg Satisfaction Rate for Customers in Each City
● Avg Retention Rate by City: Avg Retention Rate for Customers in Each City
● Avg Purchase Frequency by City: Avg Purchase Frequency for Customers in Each City
Calculation Example: City A may have 1,000 customers, with an average satisfaction rate of 85%, an average retention rate of 75%, and an average purchase frequency of 4 times per year. These KPIs would be mapped for each city.
