Performance Management: Solidifying Decision Making in Retail
The importance of timely decision making in the retail industry is, perhaps, more conspicuous than ever. Why? Simply because, the brick-and-mortar retail stores are not content anymore by simply offering customers with uni-channel purchasing experience. Instead, they are keen on implementing the multi-channel marketing experience, so that customers could enjoy the likewise online purchasing experience as well as richness of information in a physical store. Performance management plays the defining factor in the overall decision-making context, expanding throughout the lifecycle of retail business processes.
Seamless Multi-channel Marketing Not Possible without Timely Decisions
Multi-channel marketing is surely the X-factor when it comes to empowering brick-and-mortar businesses against the increasing popularity of ecommerce sites. However, introducing the element of ‘seamlessness,’ is more complicated in practical life, than most of the storeowners imagined, theoretically. Seamless multi-channel marketing requires prompt performance management decision making. Considering the plurality of challenges that modern retailers experience in the forms of fraud, out-of-stock situations, misguiding ad content, employee scheduling and dissatisfactory customer services, the goal of performance management has become increasingly complicated to attain.
While performance management aims at channelizing analytics to retail strategizing, on the other hand, simplifying the extensively complicated process remains as one of the prime objectives to be attaining for achieving this goal. So, the modern retail analytics platforms integrate an array of intelligent applications, like:
- Strategy Mapping
- Benchmark, and
- Pre-built analytic application
Unification of all these features with one platform not only makes the decision making process simpler for responsible individuals but also data availability and management becomes simpler than earlier models.
Let’s take a more detailed look at the attributes that the above mentioned applications have to offer:
- Dashboard: The analytics dashboards offer immediate, in-depth details about performance of an individual or a department or an overall enterprise, involved in the retail business. These dashboards are unified platforms that help with tracking strategic, tactical and operational areas of retail business in a one-stop fashion.
- Strategy Mapping: Strategy mapping helps retail businesses in developing a top down, multi-level performance parameters that associate strategic objectives with performance indicators. Strategy mapping is also of huge importance when it comes to prioritizing the achievement of business goals.
- Scorecard: Scorecard is important in viewing tangible results in the quest to achieve business objectives. This application initiates the process for creating models, providing clear success parameters in terms of scoring, ranking and decision prioritization.
- Benchmarking: Brick-and-mortar retail stores usually follow one comprehensive decision-making framework, despite it encompasses several improvement programs. Benchmarking is aimed at setting several performance improvement parameters through setting up targets and root cause analysis. The ultimate goal of benchmarking is establishing the entire performance management process as well guided and neatly weaved one.
- Pre-built analytics application: Pre-built analytics applications are aimed at introducing a concerned person quickly to performance management. The pre-built analytics applications may contain features like balanced scorecard analysis, SWOT analysis, performance tracking of promotional campaigns, developing sales plan and monitoring, financial planning dashboard maintenance etc.
The Key Applications in Performance Management:
The entire operational framework of performance management usually takes into account three different applications, namely:
- Initiative tracking