Work with Metrics and Retail Store KPIs

Dorothea has made great progress. She’s set up all the objects that are part of the business for Alpine Group. Her next task is to set up the metrics to measure various aspects of store performance. To do this, she needs to know the parameters that matter the most for the business.

Alpine Group uses various key performance indicators (KPIs), or metrics. These metrics are stored in the Assessment Indicator Definition object. The key defining attribute of this object is the data type of the metric. The data type can be anything—number, decimal, text, date-time, or Boolean. Alpine Group uses a wide array of assessment indicator definitions for product performance, planogram compliance, promotion effectiveness, and other cool stuff.

Dorothea looks at some key performance metrics that Alpine Group tracks frequently and considers how she can define those in the data model.

Each of these records in the Assessment Indicator Definition object creates a primary list of performance metrics. Each metric in the Assessment Indicator Definition object is reusable for products, product categories, promotions, and so on. The target values are defined through the Retail Store KPI object (more on that in the next section).

Alpine Group has complex distribution models, many routes to market, and multiple channel partner types. Every year it invests millions of dollars in product launches, promotions, and store execution. Sales managers like Gustavo work on strategic plans for promotions to drive growth and sales at retail chains.

Once promotions are in effect, how does Gustavo actually monitor progress against set objectives and make in-flight adjustments as required? Alpine Group wants to ensure that end consumers get visibility into promotions and find the right products at the right time on the right shelf. The Retail Store KPI object is an answer to better execution for Gustavo and his team.

With the Retail Store KPI object, Dorothea can define key metrics for products and product categories, ongoing promotions, installed assets, and shelf displays or planograms in retail stores. To define targets, she can take advantage of commonalities across stores, metrics, promotions, and products. She can also refer to the Retail Store Group object and the Category field in the In-Store Location object to define metrics that are applicable across all stores in a group.

The key objects in Dorothea’s KPI data model are:

Her retail store KPI data model looks like this. 

Here’s how Dorothea reviews the Retail Store KPI object for two different store groups and in-store location categories. She collects the data requirements from Gustavo.

1. Retail Store KPI to track the share of shelf compliance for the Alpine energy bars product category for planogram check.

   Field in the Retail Store KPI Object	Value Assigned for the Field
   Retail Store Group	NTO Miscellaneous Stores
   In-Store Location Category	Primary Shelves
   Product	Alpine YetiBar Energy Bar
   Assessment Indicator Definition	Share of Shelf
   Planogram	Alpine Planogram - Energy Bars
   Unit of Measure	Percentage
   KPI Type	Share of Shelf
   Target Value	Percentage (30)

2. Retail Store KPI to track the promotion compliance for a new product, Alpine YetiBar. It checks whether the promotion is executed correctly in the stores and the product is placed near the checkout counter.

   Field in the Retail Store KPI Object	Value Assigned for the Field
   Retail Store Group	NTO Specialty Stores
   In-Store Location Category	Checkout Counter
   Product	Alpine YetiBar
   Assessment Indicator Definition	Display Units
   Promotion	Launch of YetiBar
   Target Value	Number (10)

Dorothea dissects the information by asking questions about the data that’s stored in the Retail Store KPI object.

Now with Retail Store KPI records that cover metric definitions for the key products and categories, Alpine Group has real-time visibility into NTO store performance. Sales managers can compare the actual values with the target values for metrics related to products, promotions, planograms, and so on. If a promotion or planogram fails to comply, they can take corrective measures as required.