Starting a jewelry business can be intriguing, challenging and baffling, all at once. One of the best ways to ascertain the success of a startup jewelry business is to measure the metrics that will indicate where you are succeeding and where your business needs a jumpstart. If you don’t yet have a completed business plan, this jewelry business plan is a solid and comprehensive foundation from which to measure progress. Let’s examine the metrics and start measuring!
1. Inventory Turnover
A few calculations in this metric will indicate how quickly inventory items have been sold and need replacement. This offers a clear picture of the jewelry pieces that sell successfully and those that need to be removed from stock. Acting quickly on this metric will ensure a high rate of inventory turnover that equals more profitability for your jewelry business.
2. Sales Per Employee
If you have high-performing employees, you’ll note the rate of jewelry sales skyrockets when they are serving customers. Measure the sales of each employee and ask the high-performing employees to assist in training the employees with lower sales rates. It takes teamwork!
3. Customer Retention
Customers will indicate their satisfaction with your business by returning…or not. Measure the retention rate, noting the percentage of customers who return. Determine and apply remedies, as needed, to encourage loyal customers who will return regularly.
4. Online Traffic
A few moments spent in measuring the online traffic of your jewelry business will tell you whether or not customers are using your website or responding to your social media marketing strategies. Make corrections, if needed, to increase customer interest, loyalty and sales.
5. Gross Margin Return on Investment
Critically important to investors or lenders, this measurement will indicate if the return on investment is high enough to begin, or continue, returning funds to stakeholders. Calculations will indicate success as inventory is sold and profitability is attained.
There are several key metrics that can be utilized to jumpstart profits and position your jewelry business for long-term growth. Use these metrics to make informed decisions about your company by evaluating inventory turnover, generating return customers, training high-performing personnel, and observing online traffic indicators. As you jumpstart these metrics toward better performance, you’ll gain perspective in running a successful jewelry business.