A 100-store national bricks-and-mortar retail chain found that its performance varied widely from one location to another and needed a better way to performance manage the stores, close gaps, and properly incentivize top performance, average performers, and under-performers.
ROIG approached the data-centric challenge with a holistic approach that included:
Establishing the metrics that mattered
Implementing benchmarks for performance
Identifying best practices to close gaps
Setting up an incentive system to extract desired behaviors
Instigating a shoulder-to-shoulder coaching approach with leaders for sustainability
ROIG used advanced analytics to categorize stores into “like” comparable stores and categorize stores into one of 5 buckets. Each bucket represented materially different behaviors that the company wanted to incentivize. Store manager base salary, preformance bonuses, and other recognition programs were designed to reinforce the behaviors required to be a "top performing" store.
Using the top performance stores and industry targets to establish best practices in sales (repeat, conversion, ASP, basket), labor (wage, commission, hours/staffing), and P&L management practices, these benchmarks were then shared across the chain using advanced gap management approaches. ROIG further taught the regional leadership team how to perform this work using a shoulder-to-shoulder model.