How do you score on your return on engagement score (ROE)?

While ROI tells you something about how you invest your finances, ROE gives you a more holistic perspective on how strong your staff engagement really is.

In retail, performance is typically measured based on a set of KPIs. Some retailers meticulously select the most relevant ones, whereas some try to avoid getting caught up in the process and stick to the latest P&L. Some even argue KPIs represent an outdated measurement approach, when solely focusing on that.

Measuring KPIs to determine the performance level of your business is a complex affair. The list of indicators to look into can easily feel almost limitless. Same goes for the number of ways in which these indicators can be combined. But do KPIs truly show you what created results? Not on their own.

In addition to KPIs, many retailers focus on their concept - their internal processes and procedures. Not only on the constant development of it, but also on how it's being executed in the stores. Aligning across your organisation on how to continuously measure to what extent your concept is being executed correctly in the stores takes time - but it's worth it! By combining this aspect with your KPIs, you can better identify how to optimize store operations. And what does this mean for you? Of course, more time for consumers, more time to lead and more time to sell.

And lastly, some retailers are one step closer to consumers. They actively try to zero in on how consumers perceive the shopping experience in their stores via shopper surveys or exit interviews, for example. Some even directly create a dialogue with the consumers and ask for feedback to improve the shopping experience they deliver.

But the truth is, none of the 3 perspectives above - KPIs, concept compliance, consumer feedback - gives you the full picture of your performance on it's own. Combined however, they can give you an interesting insight into how effective your collective efforts in the stores are.

So, what is your ROE score today?

●     Look at all your key KPIs and performance data combined, give it a score from 0-100 (10% intervals is recommended for keeping it simple) and write it down

●    Write down your concept average score in your concept compliance

●    Write down the average score on your consumer experience

●    Add the 3 numbers together and divide the result by 3

This is your ROE score. It's not a mathematical revolution, nor a 100% valid score, but your ROE score should generate some internal dialogue and inspiration. In turn, this should create the basis for improving your concept, your consumer experience and ultimately your KPIs.

While ROI tells you something about how you invest your finances, ROE gives you a more holistic perspective on how strong your staff engagement really is.