KPIs Every Furniture Retailer Should Track
Your success depends on improving how you measure the performance of your business. The top four key performance indicators (KPIs) that a furniture retailer should focus on are sales, inventory, growth, and customer satisfaction. These critical metrics will tell you if you are meeting your goals and objectives and help determine how you make strategic decisions for your business.
Hear from several retailers on the KPI’s they measure and how they adjust their businesses based on those metrics. Our panel of retailers includes Alex Macias of Del Sol Furniture, Mitchell Stiles of W.S. Badcock Corp., and Nick Gates from Gates Home Furnishings. Learn from them how they optimized the KPIs they track to meet their goals and objectives for success.
KEY TAKEAWAYS FROM THIS WEBINAR
- Daily, or at the very least monthly, you should be looking at your KPI’s, but make sure they are accurate because you need to make decisions on numbers that are real.
- Continuing to measure KPIs year after year can give you a baseline and are critical tools for improvement. Build a foundation for your KPIs with 3-mos, 6-mos, 12-mos plans to measure over time.
- Use your KPIs to develop a plan for improvement, then hold your staff accountable.
- Top KPIs to track: Sales KPIs (revenue per guest), Marketing (in-store/online traffic, advertising, social media), Corporate level (margin/cash), Back end (delivered sales, how many stops on a truck, completion rate of deliveries, customer complaints/reviews, returns, inventory turns, etc.)
- You and your sales manager can use sales KPIs to measures efficiencies of the sales team and look at sales metrics daily and weekly to help set goals for the sales team.
- If you are growing, you need to know the KPIs for your one store before you add more stores.
- It takes some time to understand your KPIs over time. Here are the top 13 essential key performance indicators for retailers that can help.
OUR PANEL OF RETAILERS
Alex Macias – Vice President, Del Sol Furniture
Alex Macias is Vice President and the 2nd generation of Del Sol Furniture, a four-store chain in Arizona. He has been awarded Home Furnishings Business’ 40 under 40 and graduated Summa Cum Laude in Accounting from Arizona State University, W.P. Carey School of Business. He prides himself in knowing the numbers to make strategic decisions.
Mitchell Stiles – Vice President of Retail Operations, W.S. Badcock Corp.
Mitchell began his career over 20 years ago, working in a retail operation where he managed various stores. He worked as a District Manager, then moved to Director of Retail Operations, where he provided leadership to over 50 corporate stores. Now, he resides at the Corporate Headquarters, where he oversees the Company’s Credit underwriting, Credit Services, and ongoing AR Management serving as the Senior Vice President of Retail Operations and Chief Credit Officer.
Nick Gates – Owner, Gates Home Furnishings
Nick Gates is the owner and 3rd Generation of Gates Home Furnishings, a successful operation in Southern Oregon. Nick grew up in the business and was a founding member of HFA’s effort to engage and prepare the next generation of furniture retailers. He enjoys networking with other retailers and participates in a performance group to better understand his metrics and business health.