12 Retail KPIs for Online Clothing Stores in the Philippines
Everybody wants to start a business, but not everyone knows how challenging it is to run one and keep track of its performance.
As a retail clothing business owner, you know this difficulty all too well. While being an entrepreneur in the Philippines offers the unique joy of dressing up satisfied customers and reaching your goals, it also means navigating uncertainties and tirelessly striving for growth.
Here’s where retail store KPIs come into play. Each KPI for business provides measurable values indicating how effectively your clothing business is reaching its key objectives.
Let’s learn the significance of retail industry KPIs and explore some fundamental retail KPI examples to help you use them to your advantage and steer your business toward success.
The Importance of Retail KPIs in Online Businesses
Retail KPIs are numbers that help online business owners like you track and assess the effectiveness of your strategies. They provide insights into various aspects of the business, from sales performance and customer satisfaction to web traffic and efficiency.
These figures are especially crucial in retail establishments, including clothing stores, as they allow you to quantify your business’s performance in certain areas. In turn, you can identify your strengths and weaknesses more accurately. Furthermore, by providing concrete data, KPIs enable you to make better-informed decisions about where to direct resources, which strategies to pursue, and more.
E-commerce businesses enjoy even more advantages. Online platforms generate sizeable amounts of data you may analyze for insights into Filipino customer behavior, sales trends, and marketing performance. KPIs will help you make sense of this data. Digital tools like customer relationship management (CRM) platforms and logistics management software also track KPIs in real time.
12 KPIs for Online Clothing Stores in the Philippines
As a business owner, staying on top of your company’s KPIs is part of your job. It’s often challenging—there are countless figures to track. So, we’ve enumerated some of the most essential ones below to help you get started.
Financial KPIs
1. Sales
Sales metrics refer to the total revenue generated from selling products or services. They directly indicate your business’s success—if your sales are high, you’re doing something right.
2. Net profit
High sales aren’t enough; you must control your costs to maintain a healthy profit margin. So, track your net or the amount left with your company after deducting all expenses, like taxes, salaries, and overhead, from your total revenue.
3. Average order value (AOV)
This figure refers to the average amount customers spend on each order, meaning a high AOV equals more revenue per transaction. Increasing your AOV through upselling, bundling, and other tactics can significantly boost your sales without increasing order numbers.
4. Customer retention rate
This KPI refers to the percentage of customers who make repeat purchases over a certain period. Remember, acquiring new leads is five times more expensive than retaining existing ones, so retention should be your priority to ensure sustainable growth for the long term.
5. Cart abandonment rate
Cart abandonment rates indicate the percentage of shoppers who add items to their cards but don’t complete their purchases. This happens for many reasons, such as convoluted checkout processes or unsupported payment methods.
6. Customer satisfaction score
Feedback is one of the most direct ways to identify what you’re doing right and wrong—at least from customers’ perspectives. A high score often leads to repeat business and word-of-mouth referrals.
Operations KPIs
7. Inventory
Inventory pertains to the total stock of products on sale. Regularly tracking your inventory levels and turnover rates ensures you have adequate stock to meet customer demands and prevent under- or overstocking.
8. Year-over-year (YoY) growth
Your YoY is a general comparison of business performance metrics from one year to the next. It helps you understand long-term trends surrounding your business to see its progress over time. Is its growth trending downward? It might be time to pick up the pace and boost your operations.
9. Return rate
As a retail business owner, you’re no stranger to product returns. A high return rate typically indicates issues with product quality, description accuracy, and any other problems hindering customer satisfaction.
Employee KPIs
10. Sales per employee
This KPI is the total sales revenue divided by the number of employees. Generally, it measures your staff’s productivity and efficiency. A high sale-per-employee figure implies effective sales strategies and well-trained staff.
11. Staff turnover rate
Staff turnover pertains to the percentage of employees who resign from your company over a specific period. High turnover rates may disrupt operations and increase recruitment training costs. In other words, you want workers to stay for longer than otherwise.
12. Employee retention rate
Conversely, this figure refers to the percentage of employees who stay with your company. A high figure indicates a positive work environment and job satisfaction. Like customers, retaining workers is more cost-effective than replacing them since you save on hiring, recruitment, and training costs.
Make Data-Driven Decisions with Inquiro
Doing online clothing retail in the Philippines is undeniably competitive, given the industry’s significant number of top players. Drive your online clothing business toward long-term success in the country—and maybe even further—by tracking and analyzing KPIs that can help you make more informed decisions.
Don’t know what to do with your KPIs? Inquiro can help. As a business analytics company, we can help you make sense of these numbers with our suite of customer data services and user acquisition solutions. Launch your business to greater heights with data-driven insights today!
Request a demo to start providing consistent customer experiences with Inquiro.
