/ Aswen News/Guangzhou, February 25, 2022 -- There is a classic formula for the operation of e-commerce: Turnover = flow rate × conversion rate × customer unit price is still regarded as the principle in the development of e-commerce. Based on the understanding of customer behavior, the brand constantly digs the value of these three core indicators to refine and extend the establishment of online operation index system. A large number of e-commerce brand online channels continue to succeed.
When it comes to the offline store operation, the turnover of most brands is equal to the performance KPI of the store shopping guide. Shopping guides rack their brains to constantly improve their service awareness, service ability to improve personal transformation ability. In order to improve the performance of stores, the group will set up an operation department to optimize the location of stores and refine the management of shopping guides. Set up commodity department to optimize commodity category structure, participate in commodity pricing and plan commodity activities; Set up design department to optimize store display; It seems that setting up the Marketing Department, planning marketing activities and detailed member operation, helping the store drainage and transformation, and increasing the turnover have become a very complicated work of cross-department cooperation. Each department has been doing its own job to maximize the professionalism, think that the ultimate turnover of the increase is indispensable, but who in the end contributed to how much?
The single KPI of shopping guide corresponding to the turnover index is too extensive, and the KPI of the design department, Marketing Department, new media and other departments corresponding to the turnover is not accurate enough. Establishing a set of offline index system with GMV as the common goal will greatly improve the management efficiency and operation efficiency of enterprises. This paper mainly introduces a set of index system thought frame suitable for chain retail stores and introduces some common operation strategies to provide you with thinking and reference.
The refined store operation index system is constructed through "OMS model +ESC journey +MOT management". OMS model combined with ESC journey to refine and split enterprise objectives, and then combined with MOT management to refine key application scenarios under each subdivision index. Help enterprises quickly find the golden formula of the indicator system, quantize the decomposition to each functional department, and promote the rapid implementation of the indicator system.
01 OMS Model
The OMS model is an offline scenario upgrade of the OSM model, which includes Objective, Strategy and Measurement.
OSM model is an important method to build index system based on business framework. It is suitable for situations where the goal is clear (O), the strategy (S) and the action are clear. In e-commerce, small programs, community operation and other channels are popular, but to the offline scene becomes complicated, changes rapidly, there are too many options for action direction. Fortunately, the offline field is relatively fixed, so we can first establish a measurement index (M), then daydream about the strategy (S), and constantly innovate and extend according to the business scenario.
02 ESC Journey
Full life cycle management growth (such as AARRR model) is difficult to achieve for general offline store operations. ESC journey is a simpler and more practical process for customers to visit the store offline. ESC journey: Enter the store, shop Shopping, checkout Check out.
The in-store phase is mainly measured by the in-store customer flow, the in-store phase is mainly measured by the transaction rate, and the checkout phase is mainly measured by the unit price. The golden formula of store sales can be constructed: GMV= in-store customer flow × transaction rate × unit price.
Through the method of index classification, the index content is vertically disassembled. The three-level index system can gradually disassemble the company's strategic objectives to the indicators at the level of business execution. The first-level indicator is the core indicator to measure the performance, which directly influences the strategic objectives of the enterprise and also directly guides the direction of the dismantling of business objectives. The second-level indicators need to be combined with operational experience to disassemble the key of the first-level indicators, through the second-level indicators can quickly find the problems affecting the target; The third-level indicators need to be defined in the understandable, applicable and influential granularity of front-line personnel in combination with front-line practical experience, which can directly guide front-line personnel to make decisions and work.
Combining the OMS model and ESC journey, we can construct a set of basic index system for offline GMV:
For different segmentation industries, segmentation indicators will be different, forming a unique transformation funnel plot. For example, in the footwear industry, fitting rate and fitting time will be used as indicators of the transformation ability of the store; In the supermarket industry, the rate of picking up goods and the length of time will be used as an indicator of the transformation ability of the store. In the department store industry, attention to customer flow will be used as an indicator of customer flow into the store. The figure shows the transformation funnel of a shoe clothing brand in the transaction rate link. The comparison between funnel performance and Target value can guide operators to select and manage MOT.
03 MOT Management
The establishment Of a refined index system can quickly help enterprises find the crux, and how to assign the right department to reasonably implement adjustment and optimization requires a more professional perspective to analyze and formulate strategies. Strategic management (S) based on the Moment Of Truth not only guarantees the accurate implementation of the index system, It can also give full play to the flexibility and innovation ability of various departments. Shou Zheng surprisingly, in the fierce market competition at present to find their own breakthrough growth code.
For the "A Little Bit" brand, MOT is the unique tone of "welcome" when welcoming guests, is the silky smooth hand when adding syrup; For most clothing brands, MOT is VP point trendy product combination and design, is a standardized stance and etiquette; For 3C digital brands, MOT is displayed on the mobile phone side of the performance configuration of the brand, a variety of color display, star endorsement posters; In terms of supermarket, MOT is buy one get one free pile, combination of associated display, and mark-up purchase at the cashier. The list goes on and on. Different industries and brands should continue to discover and create MOTs to form their own brand value.
Based on common offline business perspectives, the paper presents a list of 18 key scenarios under different indicator systems, based on which brands can think about their MOTs and formulate strategies, or they can leave the following scenarios to explore their own unique scenarios. Through the change of the index to try and verify constantly, perfect a set of index system and strategy model.
By assigning this complete offline operation indicator system to corresponding functional departments according to their weights, the departments can intuitively understand their roles and positions in achieving strategic goals, effectively implement and implement them, and better connect other departments to promote performance growth from a strategic perspective, avoiding going it alone and deviating from the goals.
This article is the beginning of offline operation practice. More practical application cases and detailed interpretation of OMS model +ESC journey +MOT management will be published in the future. Please stay tuned!
About Whale strategizing
As a professional omni-digital marketing operation platform in China, Whale, through key technological innovations in artificial intelligence (AI), large-scale Internet of Things (IoT) and Data model (Data), provides future-oriented retail brands with data-driven, collaboration-first, simple and easy to deploy omni-brand marketing solutions. It aims to enable sustainable fine operation and lean growth of retail brands and open up the "last mile" of MarTech. At present, Whale strategy service system has widely covered food and beverage, beauty makeup and skin care, fashion shoes and clothing, light luxury jewelry, digital electrical appliances, catering and tea drinking, business super convenience, automobile service, medicine and health and other industries. It has accumulated benchmark customers such as Unilever, Watsons, Sibei, Midea, Paopamart, Nextev, Carrefour and more than 300 Top brands in the industry. The company was founded in 2017 in Hangzhou, and has offices in Shanghai, Shenzhen and Beijing.
