Retail Dogma

Sales

The Sales Equation

The sales equation for retail & ecommerce businesses is: Sales = Traffic x Conversion x Average Transaction Value (ATV) Sales Equation Example For a business that has received a traffic of 1354 customers and had a conversion rate of 30% and an average transaction value (ATV) or average order value (AOV) of 112$, the formula …

The Sales Equation Read More »

Seasonality

Seasonality in retail refers to a predictable surge in sales during a specific time of the year, due to certain recurring event or “season”. Examples of Seasonality in Retail It should be noted that seasonality differs from one retail segment to the other and from one region to the other. That’s because it is tied …

Seasonality Read More »

Quarter to Date (QTD)

Quarter to Date (QTD) is a term used in reporting, to express the period between the beginning of the quarter, up to the date of reporting. Example If the business follows a normal calendar year that starts on the 1st of January and wants to report financial results for the current quarter up to the …

Quarter to Date (QTD) Read More »

Year to Date (YTD)

Year to date (YTD) is a term used in reporting, to express the period between the beginning of the year, up to the date of reporting. Example If the business follows a normal calendar year that starts on the 1st of January and wants to report financial results up to the end of April, the …

Year to Date (YTD) Read More »

Clienteling

Clienteling has become an important technique in customer relationship management over the last few years, particularly at luxury retailers and high-end brands. It is used to improve the customer experience through personalization, enhance customer loyalty and drive repeated purchases and longevity of the customer’s lifetime with the brand. Read Also: Customer Lifetime Value What is …

Clienteling Read More »

Upselling: Definition & Examples

Upselling is a sales technique used to increase the average transaction value by inviting customers to buy an upgraded version of the same product. Upselling and cross selling are sometimes used interchangeably, but in fact they are two different techniques and it is important to make the distinction. Cross Selling vs. Upselling The main difference …

Upselling: Definition & Examples Read More »

Cross Selling: Definition & Examples

Cross selling is a sales technique, where a related product is suggested to the customer to add to their original purchase. Businesses use cross selling to increase the transaction value for customers who are already converting and are in the final stages of completing the transaction. Cross Selling vs. Upselling The main difference between upselling …

Cross Selling: Definition & Examples Read More »

Unplanned Purchases

Unplanned purchases are purchases made at a retail or ecommerce store that the customer didn’t plan for before entering the store. In order to understand why unplanned purchases happen, we first need to understand why & how people shop in the first place. The Customer Shopping Journey The typical customer shopping journey is planned in …

Unplanned Purchases Read More »

Units Per Transaction (UPT)

Units per Transaction (UPT), aka Items per Customer (IPC), is a retail KPI used to measure how many items customers add to the shopping basket on average. It is used together with Average Transaction Value (ATV) & conversion to assess the effectiveness of the sales process and the sales team at the store. Units Per …

Units Per Transaction (UPT) Read More »

Average Transaction Value (ATV)

Average Transaction Value (ATV), aka Average Order Value (AOV) in ecommerce, is a sales KPI used to measure the effectiveness of the sales process and the sales team in the store. The more skilled the sales team on the floor, the higher ATV they can deliver for the business. It is usually combined with other …

Average Transaction Value (ATV) Read More »

Why Do Retail Stores Have Sales?

Retail & ecommerce managers sit every year during budgeting season and plan out their next year’s events calendar. In this calendar they plan their sales events, as well as other seasonal launchings or any promotional events for the year. So why do retail stores have sales in the first place? Retail & Ecommerce Stores Have …

Why Do Retail Stores Have Sales? Read More »

Cannibalization

When you start growing your retail business and open more locations, cannibalization starts to become something you watch out for. Here we will explain why cannibalization could be considered a side effect, rather than a problem, and how you can minimize it, or even use it to your advantage. What is Store Cannibalization? Store cannibalization …

Cannibalization Read More »

Types of Sales Reports

To grow & improve your sales, you need to be able to measure the different factors affecting it. For this you will need to generate and read different types of sales reports on a regular basis (weekly, monthly, quarterly,..etc.) If you can’t measure it, you can’t improve it Here we are going to look at …

Types of Sales Reports Read More »