Key Ideas For Execution of a Perfect Store Programme

MEASURING YOUR PERFECT STORE EXECUTION

Why measure your Perfect Store Programme?

Creating a perfect store for retail execution is indeed a good practice and would yield results. This is the expectation.
But measuring this execution is of paramount importance. More than 80% of Perfect Store Programmes who don’t measure their set Key Performance Indicators (KPIs) regularly, find that their execution of the programme on ground level is lacking. This is a big gap that should be addressed.

How to measure your Perfect Store Programme?

It involves three key steps:

1. Build a scoring criteria:

The principle used here is prioritising by adding weightage to the parameters that are important. The parameters are Unilever’s 5Ps to measure retail visibility of your products. Below is a sample scoring criteria for the same.

2. Create a mechanism for measuring perfect store execution:

Building this mechanism can be carried out by CPGs own field representatives. During their store visits they measure KPIs for different SKUs. The results help in determining whether or not the perfect store guidelines are being followed. Third party auditors may also be hired by the CPGs.

3. Using tools for measurement:

Manual estimation of KPIs by collecting raw data is subject to errors and human bias. To avoid that, CPGs are now leveraging Industry 4.0 tools. They use Artificial Intelligence (AI) enabled Image Recognition software.

VIRTUOUS FEEDBACK LOOP FOR A SUCCESSFUL PERFECT STORE PROGRAMME

The results of the measurement are incorporated to create a feedback mechanism for constant improvement. There are three such loops that operate simultaneously in this scenario:

The instant feedback loop for the field rep from the app:

The feedback loop for the retail store from the dashboard:

The feedback loop for the CPG HQ from the dashboard:

The complete big picture feed-back loop:

INCENTIVES FOR RETAIL PARTNERS AND SALES REPS

The feedback loop becomes more effective if retail partners and field reps’ incentives are linked to the scores they achieve from executing the Perfect Store Programme.

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