Every retail business is different, but the one thing retailers share in common is having the right Key Performance Indicators (KPIs). KPIs are vital to the success of every retailer. Effective KPIs are essential metrics to ensure retailers can meet their objectives and move their business in the right direction.

KPIs allow companies to gain a better understanding of their overall performance. When retailers have a deeper insight into the true health of their organization, they are better able to make critical adjustments to their strategy.

Setting business objectives goes beyond just looking at revenues and profits on a balance sheet. Relying just on a company’s accounting is not a good measure in the long run. Retail owners should continue to seek other ways to measure progress and identify new opportunities.

Below are the three crucial KPIs every retailer should know.


1. Average Transaction Value

Transaction value measures what customers are buying and how much they are spending in the store each time they come in. A higher value indicates that shoppers might be buying more products (quantity) or paying more for expensive goods (value).

average transaction value

This KPI is useful for determining pricing and product strategy- whether the company needs to rethink pricing or implement a promotional program. Almost all seasoned retailers know that if they can encourage their customers to increase their average purchase, it will most likely boost their profit and enable the company to grow.


2. Average Basket Size

The bigger the basket size of an individual customer, the better it is for the business. Basket size measures the number of units sold per transaction, therefore a large basket size indicates that the store is fulfilling shoppers’ needs. This KPI is relevant in tracking specific promotional programs like upselling, cross-selling, or bundles — and is especially suitable for retailers who have a large portfolio with many product categories.

average basket size

With data, retailers can understand their shoppers’ purchasing patterns and determine purchase history, reveal product groupings, and predict what products are likely to be purchased together to generate higher basket sizes.


3. Foot Or Digital Traffic

There can be no sales conversion if retail stores do not get the shoppers they need. Whether it is offline or online, or multiple brick-and-mortar shops, the higher the foot traffic, the higher the sales and revenue numbers.

This data allows retailers to see if their digital or physical storefronts are performing well. Accordingly, they can create strategies that will encourage more visits. This might include devising a more effective marketing campaign or sprucing up the window display to entice traffic into the store.

Retailers are always looking to improve their success. They want to be able to see the numbers that matter, so they can make decisions based on fact, not just intuition.

“Good organizations will use data as sensors to inform and guide their actions. And this isn’t just a game for big businesses,” said Vernon Chua, founder of Innergia Labs, a Malaysian-based software company on a mission to help traditional retailers gain a competitive advantage in a highly digitized business landscape.

“This is also applicable for smaller businesses, because if they aspire to grow, then having good data will help them to map out their expansion strategy from the get-go. Knowing what the market wants, knowing how the customers are interacting with their products and their shops. All this data will guide their thinking on how to improve and expand,” added Vernon.


With the help of SYCARDA software (business intelligence analytics), retailers will be able to enjoy more accurate forecasting and identify new areas of focus instead of making decisions and strategies based on guesswork.

SYCARDA has helped retailers in Malaysia to scale up through real-time data reporting, helping them analyze patterns over time to plot better KPIs for their companies.

Reach out to our team today.



What role do Key Performance Indicators (KPIs) play in the success of retail businesses?

KPIs provide essential metrics that enable retailers to measure their performance, track progress towards goals, and make informed decisions. They offer insights beyond financial data, guiding strategies for growth and optimization.

What specific advantages does SYCARDA software offer to retail businesses?

SYCARDA software empowers retailers with accurate forecasting and data-driven strategies. It enables businesses to move away from guesswork and make decisions based on real-time data insights. By providing comprehensive reports and analysis, SYCARDA helps retailers optimize their strategies for enhanced growth and success.

Is SYCARDA software designed to benefit businesses regardless of their size?

Yes, SYCARDA is suitable for businesses of all sizes, including small and medium enterprises. Its real-time data reporting and analysis capabilities aid growth by helping businesses, regardless of size, make effective decisions based on insights and patterns.