How to Measure Retail Store Performance In An Omnichannel World

Struggling to measure retail store performance? Learn to accurately track omnichannel sales, attribute value & evaluate associate KPIs.

Measuring Retail Store Performance

Written by

Kara Zawacki, Marketing Director @ Endear

SHARE THIS ARTICLE

Picture this: Your top sales associate just helped a customer find the perfect product in-store, but the customer decided to buy it online later that evening. Traditional metrics would give your associate zero credit for that sale, even though they were instrumental in closing the deal. Sound familiar?

You're not alone in this struggle. The retail landscape has evolved into a complex web of touchpoints where 79% of consumers use mobile devices to compare prices in-store, and a staggering 80% of shoppers check online prices while browsing your physical location. This creates an incredibly challenging environment for accurately measuring retail store performance and fairly evaluating your sales team's contributions.

Here's what makes this even more complex: nearly 80% of customers engage in both showrooming (browsing in-store but buying online) and webrooming (browsing online but buying in-store). Your current measurement framework likely can't capture this cross-channel behavior, creating blind spots that undervalue your store's true contribution.

The good news? There are proven frameworks that can help you navigate this complexity and create a more accurate picture of both your store's performance and your team's effectiveness. Let's dive into the strategies that forward-thinking retailers are using to solve this puzzle.

The Modern Challenge of Measuring Retail Store Performance

Gone are the days when measuring retail success was as simple as counting cash register receipts. Two-thirds of shoppers now purchase online items they previously only bought in-store, fundamentally changing how we need to think about retail store performance.

The complexity of modern retail creates significant measurement challenges. Shoppers now engage with an average of six brand touchpoints before making a purchase, making traditional retail store performance metrics inadequate. You can't accurately assess your team's effectiveness if you're only looking at direct in-store transactions.

This omnichannel behavior creates a significant blind spot in traditional performance measurement. Your in-store metrics might show declining conversion rates, but that doesn't necessarily mean your physical location is underperforming. In fact, opening a physical store increases online sales in the local trade area by 6.9% on average, with an even stronger 13.9% uplift for emerging direct-to-consumer brands.

Consider these common scenarios that complicate performance measurement:

  • The Research-to-Store Journey: 83% of customers research online before visiting stores, reading reviews and comparing prices, then visit your physical location to make the final purchase. Your e-commerce team drives the initial interest, but your in-store team closes the sale.
  • The Digital-Assisted Shopping Experience: 72% of shoppers use smartphones in-store to compare prices or check reviews while your sales associates provide expert guidance. Multiple touchpoints contribute to the final decision.
  • The Showroom Effect: Customers visit your store to experience products firsthand, receive expert advice from sales associates, then purchase online for convenience or better pricing. Your store team provides crucial value, but the online channel captures the transaction.

The challenge becomes even more complex when you consider that different products and customer segments exhibit varying cross-channel behaviors. A customer buying a high-end appliance might visit your store three times, call your customer service twice, and browse your website multiple times before making a purchase. How do you fairly attribute that success across all the touchpoints that contributed to the sale?

These scenarios highlight why you need a comprehensive framework that accurately reflects each channel's contribution to your overall retail store performance. Omnichannel shoppers have a 30% higher lifetime value and spend 30% more per journey, making accurate attribution essential for business success.

Consider this eye-opening statistic: over 37% of shoppers make additional in-store purchases when picking up online orders, jumping to 86% during peak seasons. Traditional metrics would completely miss this cross-channel influence.

Building a Comprehensive Retail Store Performance Framework

1. Understanding the Full Customer Journey

The foundation of effective retail store performance measurement starts with mapping your customer's complete journey. This becomes crucial when you realize that physical stores still drive 76% of retail sales, yet much of their influence happens behind the scenes when it comes to digital channels.

Implementing a customer journey tracking system requires connecting individual customers across channels using Customer Data Platforms (CDPs), which unify data from online, mobile, and in-store interactions for comprehensive performance metrics. This might involve using customer loyalty program data, email addresses, phone numbers, or even device fingerprinting to connect the dots between online and offline interactions.

Your framework should account for several key journey stages:

  • Discovery Phase: Where do customers first encounter your brand or products? This could be through social media, search engines, word-of-mouth, or simply walking past your store.
  • Research Phase: Customers often gather information across multiple channels. They might visit your website, read reviews, compare prices, and visit your physical store to see products in person.
  • Consideration Phase: This is where your sales associates often shine, providing personalized recommendations and addressing specific concerns that online resources can't fully address. 
  • Purchase Phase: The actual transaction might happen in-store, online, or through other channels like phone orders or mobile apps.
  • Post-Purchase Phase: Customer service, returns, and repeat purchases all contribute to long-term retail store performance.

Understanding your customer's complete journey across all touchpoints is essential for accurate retail store performance measurement. By mapping these journeys and implementing robust tracking systems, you can identify how in-store experiences influence online purchases and vice versa. This holistic view reveals the true impact of your physical locations and sales team, even when transactions occur through different channels. Remember that 76% of retail sales still involve physical stores in some capacity, whether for initial discovery, hands-on evaluation, or final purchase.

With a comprehensive understanding of your customer journey in place, the next critical step is implementing the right attribution model to properly credit each touchpoint's contribution to sales. Traditional single-touch attribution simply doesn't capture the complexity of modern shopping behavior, making it impossible to accurately evaluate store performance or sales associate effectiveness.

2. Different Potential Attribution Models For an Omnichannel World 

Traditional last-click attribution models are woefully inadequate for today's retail environment. Omnichannel attribution models integrate customer touchpoints across offline and online channels, providing a unified view of how marketing and retail activities drive conversions and sales.

The financial impact is significant: key KPIs like Customer Acquisition Cost (CAC), Customer Lifetime Value (CLV), and Return on Investment (ROI) rely heavily on omnichannel data for accurate retail employee evaluation and performance assessment.

  • First-Touch Attribution: This gives credit to the channel that first introduced the customer to your brand. While useful for understanding acquisition, it doesn't tell the full story of conversion.
  • Multi-Touch Attribution: This approach distributes credit across all touchpoints in the customer journey, including in-store visits and associate engagements. For retail environments, this often provides the most accurate picture of how different channels contribute to sales.
  • Time-Decay Attribution: This model gives more credit to touchpoints closer to the actual purchase, which can be particularly relevant for retail where the final in-store interaction might be most influential.
  • Position-Based Attribution: This hybrid approach gives higher weight to both the first interaction and the final conversion point, while still acknowledging middle-of-funnel touchpoints.

The key is choosing an attribution model that aligns with your specific customer behavior patterns and business objectives. You might even use different models for different product categories or customer segments.

3. Implement Cross-Channel Tracking Systems

Effective retail store performance measurement requires robust tracking systems that connect customer interactions across all channels. 60% of retailers plan AI integration in omnichannel strategies to deliver real-time personalization and improved attribution. Here's what you need:

  • Unified Customer Profiles that combine data from all touchpoints. Your system should track when customers browse online, visit stores, interact with sales associates, and make purchases through any channel.
  • Store Associate Tracking that records when team members assist customers who later purchase through other channels. This might include unique associate codes, customer relationship management (CRM) integration, or assisted selling platforms.
  • Digital Footprint Monitoring that tracks how online activities influence in-store visits and purchases. This includes website analytics, social media engagement, and email marketing interactions.
  • Post-Purchase Surveys that ask customers about their complete journey. This qualitative data helps validate your attribution models and identify gaps in your tracking.

Implementing robust cross-channel tracking systems provides the technological foundation needed to accurately measure retail store performance in today's complex shopping environment. These systems connect the dots between online browsing, in-store interactions, and purchases across all channels, revealing the true impact of each touchpoint. With comprehensive tracking in place, you'll gain visibility into how your physical stores influence digital sales and vice versa, allowing for more accurate performance assessment and strategic decision-making.

However, even the most sophisticated tracking systems are only valuable if you're measuring the right things. As we shift to an omnichannel retail landscape, the traditional KPIs used to evaluate sales associates no longer tell the complete story. Let's explore how to evolve your performance metrics to properly recognize and reward your team's contributions across all customer touchpoints.

Revisiting Sales Associate KPIs for the Omnichannel Era

Broadening Performance Metrics for Sale Associates 

Traditional retail employee evaluation often focuses on simple metrics like individual sales volume or conversion rates. However, these metrics fail to capture the full value that great sales associates bring to your omnichannel operation.

The stakes are higher than you might think: companies with strong omnichannel engagement retain 90% more customers than single-channel stores. Your associates play a crucial role in this retention equation.

  • Assisted Sales Metrics: Track sales that can be attributed to a sales associate's involvement, even if the final purchase happens through another channel. This might include customers who were helped in-store but purchased online within a specific timeframe. This approach becomes critical when you consider that omnichannel customers have a 30% higher lifetime value.
  • Customer Engagement Quality: Measure the depth and quality of customer interactions. This could include time spent with customers, number of products demonstrated, follow-up communications, or customer satisfaction scores specifically tied to individual associates.
  • Cross-Channel Influence: Develop sales associate KPIs that capture how in-store interactions drive online behavior. For example, track how many customers visit your website or mobile app after interacting with a specific sales associate.
  • Customer Lifetime Value Impact: Measure how sales associates influence long-term customer relationships, not just immediate transactions. Associates who excel at building relationships might show lower immediate conversion rates but higher customer retention and lifetime value.

Expanding your performance metrics beyond traditional sales figures creates a more accurate picture of how sales associates contribute to your overall business success. By tracking assisted sales, engagement quality, cross-channel influence, and customer lifetime value impact, you'll recognize and reward the full spectrum of value that your team provides. This comprehensive approach acknowledges that a great associate might influence thousands in online revenue without ever ringing up those sales directly at their register.

With these broader performance metrics established, the next challenge becomes implementing effective evaluation systems that capture the nuanced role of retail employees in an omnichannel world. Let's examine how to evolve your employee evaluation framework to properly assess performance across multiple customer touchpoints and sales channels.

Retail Employee Evaluation in a Multi-Channel World

Modern retail employee evaluation requires a more nuanced approach that recognizes the complexity of omnichannel customer relationships. Some factors to consider include:

  • Consultative Selling Skills: In an omnichannel world, sales associates often serve more as consultants than traditional salespeople. Evaluate their ability to understand customer needs, provide valuable information, and guide customers through complex purchase decisions. 
  • Digital Integration Capabilities: Assess how well associates can seamlessly integrate digital tools into their sales process. This might include using tablets to show additional product information, helping customers navigate your mobile app, or facilitating online orders for out-of-stock items.
  • Customer Experience Consistency: Evaluate how well associates maintain brand consistency and service quality across different interaction types, whether in-person, over the phone, or through digital channels.
  • Adaptability and Learning: The retail landscape continues to evolve rapidly. Assess associates' ability to adapt to new technologies, processes, and customer expectations.

Evolving your retail employee evaluation approach to encompass consultative selling skills, digital integration capabilities, customer experience consistency, and adaptability creates a framework that truly reflects performance in today's multi-channel retail environment. This comprehensive evaluation system recognizes that sales associates now serve as brand ambassadors, product experts, and digital guides who influence purchases across all channels. By measuring these broader contributions, you'll not only assess performance more accurately but also reinforce behaviors that drive omnichannel success.

Of course, implementing these advanced evaluation methods requires the right technological infrastructure. Without proper systems to track cross-channel interactions and attribute influence accurately, even the best evaluation frameworks will fall short. Let's explore the technology solutions that make comprehensive performance tracking possible in an omnichannel retail operation.

Implementing Technology Solutions for Comprehensive Tracking

Choosing the Right Analytics Platform

Effective retail store performance measurement requires robust technology infrastructure. Ideally you should aim for a retail CRM like Endear that is designed to integrate data from multiple sources to provide the unified view that omnichannel attribution demands. 

Point-of-sale systems remain crucial, but they're no longer sufficient on their own. You need platforms that can integrate POS data with website analytics, customer relationship management systems, inventory management tools, and marketing automation platforms.

Look for solutions that offer real-time reporting capabilities. In today's fast-paced retail environment, waiting for end-of-month reports isn't practical. Your team needs access to current performance data to make timely adjustments to strategies and tactics.

Data Integration Strategies

The biggest challenge in omnichannel performance measurement is often data integration. Customer information might be scattered across multiple systems that don't naturally communicate with each other.

  • Customer Data Platforms (CDPs): These specialized tools are designed to unify customer data from multiple sources, creating comprehensive customer profiles that track behavior across all channels This integration is essential for accurate sales performance evaluation.
  • API Integration: Ensure your various systems can share data through application programming interfaces. This allows for automated data synchronization and reduces manual data entry errors.
  • Data Warehousing: Consider implementing a centralized data warehouse that serves as a single source of truth for all customer and sales information.
  • Privacy and Compliance: As you integrate more customer data, ensure your systems comply with relevant privacy regulations like GDPR or CCPA. Transparent data practices build customer trust and protect your business.

Adapting Your Approach To Measuring Store Performance for an Omnichannel World

The retail landscape continues to transform, and your measurement strategies must continue to evolve accordingly. Traditional metrics that isolate store performance from digital channels no longer reflect reality, they create dangerous blind spots that undervalue your physical locations and fail to recognize your team's true contributions.

By implementing comprehensive attribution models, expanding your performance metrics, and leveraging the right technology solutions, you'll gain an accurate picture of how your stores drive value across all channels. This isn't just about fair evaluation, it's about making informed strategic decisions that recognize the 76% of retail sales still influenced by physical locations.

Remember that your customers don't think in channels, they simply shop with your brand through whatever touchpoint best serves their needs at each moment. Your measurement framework should reflect this reality.

The retailers who thrive will be those who connect the dots between online browsing and in-store experiences, who recognize sales associates as crucial touchpoints in an omnichannel journey, and who measure success holistically rather than in silos. Will your organization be among them?

Take the first step today by mapping your customer journeys across channels and identifying the gaps in your current measurement approach. Your stores are likely delivering far more value than your metrics currently capture, it's time to give them the credit they deserve.