Why should you measure compliance with the brand’s service, merchandising and health & safety standards?
1. Measurement breeds compliance. You can publish standards and train your staff but only when you measure compliance do you achieve it. Just like students tend to pay more attention to the lecture when the teacher says “this will be on the test”, compliance is best achieved when all know it will be verified and measured.
2. Training is necessary but not sufficient. Measurement in the field allows training ROI to be objectively assessed. Store staff may be trained, answer the quiz and pass the test, but are they applying their learned skills where it matters, enhancing the customer experience?
3. Measurement engages owners/franchisees by continually reinforcing organizational standards and best practices. Measuring compliance is not a passive activity. It actively engages the store owner or franchisee to continually improve the store according to best practices.
4. Measurement in electronic form enables data analytics at head office: Spot trends, problems areas, improvements and degradations. Measurement allows store, field and head-office personnel to make better business decisions. Programs and standards can be shaped in response to the available data. Perhaps additional training is needed in specific areas or you need to implement new standards or guidelines. Measurement helps shape your operations.
5. Operational compliance is not a “feel good” thing nor is it a make-work initiative. Operational compliance means leaner, cleaner and more efficient stores. Customers have a way of thanking stores that are clean and efficient: they come back!
6. Market research suggests non-compliance with in-store programs is costing the retail industry 1% of gross sales. Just like measurement breeds compliance, compliance breeds sales. Read more on the cost of non-compliance.