What are the key performance indicators (KPIs) that you use to evaluate the effectiveness of your planograms?

2 Sales per linear foot

Another important KPI for planograms is the sales per linear foot, which measures how much revenue you generate from each foot of shelf space. This KPI helps you assess the profitability and productivity of your planograms, and identify the best-selling and worst-selling products. You can calculate the sales per linear foot by dividing the total sales of a product category by the total linear feet of shelf space allocated to that category. You can also compare the sales per linear foot of different products, stores, or regions to optimize your merchandising strategy and allocation.

3 Out-of-stock rate

A third key KPI for planograms is the out-of-stock rate, which measures how often your products are unavailable or missing from the shelves. A high out-of-stock rate means that you are losing sales opportunities, disappointing customers, and wasting shelf space. A low out-of-stock rate means that you are maintaining adequate inventory levels, satisfying customer demand, and maximizing shelf utilization. You can calculate the out-of-stock rate by dividing the number of out-of-stock products by the total number of products on the planogram, and multiplying by 100. You can also use inventory management systems or audits to monitor the out-of-stock rate of each product, store, or region, and adjust your replenishment and ordering processes accordingly.

4 Customer satisfaction

A fourth key KPI for planograms is the customer satisfaction, which measures how happy and loyal your customers are with your products and store layout. Customer satisfaction is influenced by many factors, such as product quality, variety, availability, price, and presentation. A high customer satisfaction means that you are meeting or exceeding customer expectations, increasing repeat purchases, and generating positive word-of-mouth. A low customer satisfaction means that you are falling short of customer needs, losing customers to competitors, and damaging your brand reputation. You can measure customer satisfaction by using surveys, feedback forms, reviews, ratings, or loyalty programs.

5 Conversion rate

A fifth key KPI for planograms is the conversion rate, which measures how effectively you are turning store visitors into buyers. Conversion rate is affected by many factors, such as product appeal, placement, signage, promotion, and impulse buying. A high conversion rate means that you are attracting and engaging customers, encouraging them to buy more and spend more. A low conversion rate means that you are missing sales opportunities, wasting store traffic, and reducing your average basket size. You can calculate the conversion rate by dividing the number of transactions by the number of store visitors, and multiplying by 100. You can also use analytics tools or audits to track the conversion rate of each product, store, or region, and test different planogram scenarios to improve it.