8 top Key Performance Indicators for forecourt performance
8 top Key Performance Indicators for forecourt performance. Forecourts are busy places with an ongoing customer footfall and a fast flow of transactions.
Often, the forecourt business owner will have several other facilities to maintain alongside fuel services, such as a convenience store, deli, coffee shop, or car wash. Opening hours are long, your service station may even operate 24 hours a day, 365 days a year.
There is very little downtime in such an intense industry, and there is a constant demand on every manager’s time just to handle all the daily tasks that come with the territory.
Why use Key Performance Indicators?
With the unpredictability that comes with any customer-facing business, it’s easy to get caught up ‘firefighting’ and losing focus of the overall picture – your strategic plan.
You have already created your business strategy and know what you hope to achieve, but how can you be sure you are meeting your targets in this dynamic sector?
Consistent monitoring of your business’s performance is key to identifying your successes and failures.
By implementing a system of efficient regular checks, the generated data can be utilised to assess and adjust your strategy.
Regular KPI checks give you reference points and comparisons, enabling the business to constantly adapt and grow.
8 key performance indicators that give useful insights within forecourt retail
1. Number of transactions
Monitor and record the number of transactions processed per day, week, month, quarter, and year.
Categorise and separate the sales (e.g. fuel/services/grocery/deli). This creates rich data for comparison and is the basis for many useful reports. It also assists with staff scheduling.
2. Average sales
Use the transaction numbers to calculate the average sale per customer in any given time frame.
Strategies can be created or improved to increase consumption, for example, offers that require a certain spend, or happy hours.
Margin is the most important metric for every business.
Profitability should grow in proportion with increased sales. If it doesn’t, there may be a planning or performance issue that needs addressing.
Productivity relates to the volume of demand that the forecourt can meet.
This means monitoring the turnover of stock (fuel and store goods) in comparison with the historical average. It also involves measuring staff performance and reward, e.g. hours and salary vs transactions, to allow for better planning and incentive.
5. Return on Investment
Return on investment is an approximate measurement of an investment’s profitability, i.e. the gain on an investment relative to its cost, for example, equipment and technology purchases.
It is calculated by subtracting the initial value of the investment from the final value of the investment (the net return), then dividing this by the cost of the investment, and finally, multiplying it by 100 to get a percentage.
6. Customer satisfaction
This relates to customer feedback and retention. By measuring customer loyalty, you can identify customer experience weaknesses and areas for improvement.
This information is most often gained via satisfaction surveys, which can be used to compile data for metrics you are interested in.
7. Staff turnover
Monitor the costs involved in staff turnover. Recruitment costs, admin, training, uniforms, and learner errors etc. all add up.
Additionally, a high staff turnover can be detrimental to the business’s reputation in the eyes of its customers and the local community.
The KPI is calculated by dividing the number of employees who have left the business by the average number of employees within a particular time period. This number is then multiplied by 100 to get a percentage.
8. Product mix
Monitor the mix of products purchased between the forecourt and the convenience store, to plan effective placement and stock levels, and ensure customers are not missing out on high turnover products.
How can I manage KPI data?
The introduction of technology to implement automation and reporting can greatly assist with managing your KPI data.
Suitable technology reduces the time spent gathering, storing, and analysing information. This allows the business manager more time to focus on planning, strategy, and daily tasks.
Management systems can compile your data and use it to generate many useful reports. This allows consistent monitoring of your business’s performance, while eliminating the need for spreadsheets and manual calculations.
A dedicated electronic point of sale system automatically collects all the details of every transaction within your store. This will include things like supplier information, dates, quantities, and costs.
EPOS manages your purchases and stock control, along with sales, volume, and transaction data, allowing for the generation of reports containing all the necessary performance data.
Once you have automated metrics such as costs and profitability to hand, administration time can be significantly reduced allowing for a greater focus on management concerns – business planning and strategy for customer retention and growth.
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About the author
Susan McGuire looks after Maintenance and Marketing at Retail Solutions. You can follow her on LinkedIn!