Clientbook Blog
April 26, 2023

Top five retail KPIs every retailer should track

In the retail industry, there are dozens of metrics that track everything from your profit margins to the effectiveness of your sales process. But with so many metrics to choose from, it can be daunting for retailers to know where to start. 

In this article, we break down the most popular retail KPIs that every retailer should know so you can keep a closer eye on your buyers, your revenue, and even your sales team. 

What is a retail KPI? 

KPI stands for "key performance indicator." A retail KPI refers to any metric that measures the performance of a retail store. This can include anything from tracking sales revenue to gauging the success of your customer service efforts. 

Retailers will use retail metrics and KPIs for many reasons, including setting business goals, monitoring their sales team, and gaining insight on customer satisfaction. 

Why is tracking KPIs important for retailers? 

If you're not tracking retail metrics at your store, you're missing out on valuable insights that can help you better run your store.

For example, collecting and storing data on your customers—such as what products they bought and when—can help you understand which types of products are selling well and the period of time they sell best.

A jewelry brand may learn that engagement rings sell best in the summer months, inspiring them to switch up their window display during that time period to feature them more prominently. 

In short, the more retail metrics you're tracking at your store, the more insights you'll gain to help optimize your business strategies.

Top five retail KPIs every retailers should track 

When it comes to key metrics to track at your retail store, there are plenty to choose from. We've broken them down into five categories to help you decide which ones you want to prioritize for your retail business. 

1. Metrics that track new customers 

First off is key performance metrics that help you gain insights on your new customers. These will be things that help you measure your traffic of new customers visiting your physical store or online business, how much it costs to acquire a new customer, or how much your business has grown over a given time period.

Examples of KPIs in this category include: 

Metrics focusing on your new customers are essential to understanding your business growth and if the effort you're putting in to attract new people to your business is paying off. If you find that customer foot traffic is low or you're not getting a lot of unique site visitors, you’ll want to rethink your acquisition strategy. 

2. Metrics that track current customers 

Another category of critical metrics for retailers to track are ones that look at your current customer or client base. These are metrics that focus on how well you're retaining your current buyers, earning repeat business, and gaining consumers' trust.

Examples of KPIs in this category include:

Metrics like these are important ones to track because they give you insight on your customer loyalty and overall brand reputation. The more you know about what is keeping your current buyers happy, the better you can spread that feeling to other shoppers.

3. Metrics that track your products

Next, there are inventory metrics that track product performance. These KPIs help you identify your most profitable products, if certain product categories sell better during certain seasons, and how products are displayed in your store impacts sales. 

Examples of KPIs in this category include:

  • Product return rate
  • Customer demand on popular products
  • Inventory turnover rates
  • Average inventory cost
  • Sales per square foot 

Merchandise performance metrics offer profound insights when it comes to building your product strategy, deciding which products you want to keep in stock, and keeping you from over-ordering products that won't sell. 

4. Metrics that track your sales team  

Metrics that measure employee performance is another important area for business owners and sales managers to pay close attention to. These are KPIs that track both individual employees as well as how well your sales team is as a whole at converting casual shoppers into loyal customers. 

Examples of KPIs in this category include:

  • Conversion rates 
  • Sales per employee 
  • Employee turnover 

Sales metrics like these help you determine the root of the problem if you're noticing a slowdown in sales. For example, if you're getting a lot of traffic to your physical location, but aren't earning a lot of new customers, a metric like sales per employee could help you pinpoint the problem to a specific team member that isn't doing a good enough job converting sales opportunities into actual sales. 

5. Metrics that track your marketing strategy   

Finally, there are metrics that help you determine the success of your marketing campaigns and advertising efforts. These are especially important for omnichannel retailers that are retailing on multiple channels, such as on a website or social media shop. 

Examples of KPIs in this category include:

  • Email open and bounce rates
  • Lead traffic source 
  • Social media followers, likes, and shares 
  • Cost per click (CPC) 
  • Cost per lead (CPL)

These are essential metrics for ensuring your marketing dollars are working for you. Nobody wants to put money toward campaigns that aren't working, aren't reaching your target audience, and aren't getting you the results you need. By keeping a close eye on metrics like these, you can measure your marketing effectiveness and know when you need to switch things up if you're not getting results.  

How you can improve your retail KPI tracking 

If you're new to tracking retail performance metrics, know that there are retail software solutions out there to make collecting, tracking, and storing this kind of data simple for retailers. 

Clientbook is a retail solution built to help retailers collect customer data, better retain their buyers, and even track their sales team. Better yet, we automate the most time-consuming tasks so you can focus on running your business. 

Check out our customer stories to see why thousands of retailers love using Clientbook


Whether you're looking to measure the effectiveness of your sales tactics, make more informed decisions about your products, or better understand customer habits, there's a retail KPI out there to help you get the knowledge you're looking for. 

With a retail software solution like Clientbook, you can track this kind of data in the palm of your hand. If you're ready to see how Clientbook can help you make data-driven business decisions, book a demo today

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