Why you should madly love Key Performance Indicators!

Dear fellow practioners do you love your KPIs? – I bet not. I bet only a minority of Boutique Managers know them by heart and even fewer no how to influence them not to speak on what they stand for.

In fact there are two sides of the medal to see KPIs.

1.) It is HQ speech and it must be like that. A KPI is a photography of a situation of an operation at a specific moment in time, translated into a language you can use througout a global operating company.

2.) KPIs are the only way to compete against yourself, to manage yourself. Even more important to me is that in looking at a KPI I see the activity behind and the endless possibilities to influence this very KPI, ultimately being the key to your operation’s success.

It sadened me often to see Boutique Managers and Sales staff not having a clue on them, because in my eyes it means you do not care about your business.

If you think you are supersmart and fake your KPIs (especially traffic) you should consider the interconnection of it…

If your traffic is low and you sell your conversion rate is excellent, but what is the effect on your FTE? – My argument would be – slow traffic, yet high turnover? – super we do not need more staff – profitability per capita rises. Accountant is happy.

But let’s start in the beginning:

A KPI in a Boutique must be influencable by the exploitation of the Boutique. – In other words: as sexy as TO/SQM sounds it is a financial / retail KPI, not a Boutique KPI, unless you can change the space of your Boutique on your own.

Thus the few real KPIs in a Boutique are:

  • Traffic
  • Transformation rate
  • Average Price
  • Number of Products sold per transaction
  • Discount


  • Share of repeaters
  • share of locals

That’s it folks, nothing more. 5 operational KPIs and 2 customer KPIs. All the other KPIs are non-operational or non retail. There is a greyzone on CRM KPIs there, but in principle no, as successful CRM is already reflected within the above mentionned.

So what do they mean?


On how to influence them? – There comes another time to talk about, do your little list already – enlightment will follow suit.

Enjoy. and happy sales!




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