Archive for March, 2014

Key Performance Indicators: Measure What Matters

KPI’s (Key Performance Indicators) are the benchmarks, when compared with each other or to historical data, that help you quickly determine how well you are doing.

I recommend to my clients that they choose no more than five KPI’s, preferably 3. They come in all shapes and sizes. And I often ask my clients what they think they should measure to determine success, and see when things are going off the tracks.

A self-employed client of mine recently shared with me that her success is measured by:

This is how she measures her performance, and the subsequent success, each and every day.

Business can be fun when it’s played like a game. Track the stats to determine if you are winning and by how much.

Customer Incentive Misses the Mark

I was at a major drug store yesterday purchasing an electric toothbrush. On the locked cabinet door was a little sign that read “$20 gift to you if we don’t ask you about the warranty”. I made the purchase and when the transaction was completed I brought it to the attention of the check out clerk that he had not asked me about the warranty, and how do I get my $20. He looked deflated and said, “Go to the Customer Service counter and collect it.” I asked if he would be penalized if I did, and he said, “No.”

I walked over to the Customer Service counter and mentioned to the clerk that I was not asked about the warranty. He stammered and said that he had to call the manager over. He dialed the phone and paged the manager. Within a minute the manager came over. He never looked me in the eye. The customer service clerk volunteered the name of the checkout person who didn’t ask me for the warranty. He said his name twice, but it was the wrong check out clerk. The actual check out clerk was within ear shot, so he stated that it was him. The manager still didn’t look at me and muttered, “Sure, give her the gift card,” kept his head down and walked away.

I stood there a little stunned. I was uncomfortable with asking for the $20 in the first place. I was uncomfortable with the focus on “who” didn’t ask me for the warranty. I was uncomfortable that the manager had not interacted with me. Perhaps, all of that would have disappeared, if the manager had looked at me and said, “Our apologies. While we take care of your gift card, let me explain the benefits of the warranty.”

None of that happened. Will they be giving out more $20 gift cards? Probably. Is this what head office wants? I don’t think so. However, I point the finger at head office for not training the manager on how to ask for the warranty sale and demonstrate the level of customer service that they would expect from a store manager. Review your customer incentive programs with fresh eyes. Not impressed? Give me a call.