4224 performance metrics
TRANSCRIPT
Jaime Hadley
Contemporary Metrics and Organizational Performance
Motherhood Maternity – Store Performance Metrics
Most companies these days experience a constant influx of customer data. Companies
track customer experience, purchase patterns, and sales dollars in an effort to utilize data to make
strategic decisions to increase performance. In order to be effective, the metrics used by
companies must be directly related to their strategic goals. The metrics must reflect accurate data
that can be analyzed and translated into actionable intelligence. Motherhood Maternity, a part of
the Destination Maternity Corporation, uses different systems to track and analyze different
aspects of their performance. This paper summarizes those systems and discusses how they are
used to measure performance and create strategic goals.
Motherhood Maternity uses customer surveys to gather data about customer experiences.
This survey can be taken by anyone, as it can be located and accessed through a quick internet
search. The survey is mentioned on the bottom of every Motherhood Maternity receipt, and the
staff is supposed to mention the survey to the customer at the end of every transaction. The
survey begins by asking the customer to identify the store they shopped in and then proceeds to
ask questions related to overall experience, store conditions, and employee performance. Though
mostly multiple choices, on a rating scale, the end of the survey gives the customer the
opportunity to write a comment. Customers are enticed to take the survey by being entered into a
drawing upon completion, currently for a Kindle Fire.
Motherhood uses the survey data in a variety of ways. The questions asked reflect the
strategic goals of the corporation for customer experience. Motherhood Maternity sets high goals
for store cleanliness and accessibility, as well as sales staff and management performance. The
questions ask the customer to rate the store on a scale of 1 to 5, with 5 being the best possible
score. The manager of the Rogers, AR Motherhood Maternity store indicated in a phone
interview that each individual store is given an overall score based on the surveys. She stated that
a store of 4.5 or higher is required of each store. Should the score slip below 4.5, higher level
management coaches the store manager and staff to help identify where the store is failing and
set goals for improvement. Brittney, the store manager for Rogers AR, also stated that the store
manager is alerted if any question is answered with a 1 – the lowest possible score. The manager
is then asked to follow up with the customer personally to resolve the issue and try to salvage the
customer relationship. The store staff receives the comments as well; the positive comments
provide encouragement and identify staff members going above and beyond, and the negative
comments are followed up on.
Motherhood Maternity also uses metrics to track sales performance by store and
individual staff members. The computer used for sales transactions tracks how many units are
sold per transaction, how many dollars made in each sale, and the current sales versus the daily
goal for the store. Employees are expected to maintain a units per transaction number of 3.5 or
higher and a minimum of $45.00 per sale (numbers based on previous experience – may not
reflect current goals.) These numbers are based on organizational goals and reflect the sales
success of each individual and individual store. Staff at Motherhood is evaluated based on these
metrics, and coached to achieve the highest scores possible. The computer also tracks the sales
dollars for each day and compares them by percentage to the store’s daily sales goals. The sales
goals are based on corporate goals, as well as the store’s performance on the same day, previous
year. Sales goals are tracked and used to determine the success of the store and management.
Lastly, Motherhood Maternity tracks the capture rate of customer information, number of
credit card signups, and the number of partner program signups (depending on current
partnerships.) When checking out in the store, the customer is asked for an email address, first
and last name, mailing address, and due date. The store must maintain a certain capture rate to
avoid additional coaching and be considered successful. The store must also maintain a
minimum number of credit card signups, for the Destination Maternity credit card, and customer
participation in partnership programs, such as a subscription to Parenting Magazine.
Motherhood Maternity, like so many corporations, uses data gathered in stores to track
and measure organizational performance as well as create strategic goals. Motherhood Maternity
specifically uses client surveys, sales metrics (dollars per sale, items per sale), and additional in-
store rates to track their store and management performances. By doing so, Motherhood
Maternity is making the smart decision to use the data at their availability to contribute to their
organizational success and long-term sustainability.