The initiative to expand retail distribution points focuses on increasing the network of sales locations by establishing new retail outlets. Key metrics such as the "Number of New Distribution Points" and "Conversion Rate" are crucial in assessing the effectiveness of outbound selling by customer service representatives. For instance, hitting a benchmark of 10 new distribution points per quarter ensures a healthy expansion pace.
Another significant aspect is the "Sales Cycle Length," measuring the time from first contact to a new distribution point's establishment. This metric supports optimizing processes for faster setup. Similarly, the "Revenue from New Distribution Points" tracks initial revenue growth, aiming for a 15% increase within three months, highlighting the significance of incentives and support.
Top 5 metrics for Growing retail distribution
1. Number of New Distribution Points
The total number of new retail distribution points established in a specific period due to outbound selling by customer service representatives
What good looks like for this metric: 10 new distribution points per quarter
How to improve this metric:- Develop a targeted list of potential stores
- Train customer service reps on sales techniques
- Offer incentives for successful partnerships
- Leverage existing customer relationships
- Utilise data to identify high-potential areas
2. Conversion Rate
The percentage of contacted stores that become active retailers
What good looks like for this metric: 20% conversion rate for outbound efforts
How to improve this metric:- Refine sales pitch and presentation
- Identify and address common rejection reasons
- Use testimonials or case studies
- Follow up consistently with potential clients
- Provide flexible terms or agreements
3. Customer Service Rep Productivity
Average number of new distribution points secured per customer service representative per month
What good looks like for this metric: 2 new points per rep per month
How to improve this metric:- Streamline contact and follow-up processes
- Set clear targets and expectations
- Use technology to enhance outreach efforts
- Provide regular training and feedback
- Encourage collaboration among team members
4. Sales Cycle Length
The average time it takes from the initial contact to the establishment of a new distribution point
What good looks like for this metric: 3-4 weeks from contact to establishment
How to improve this metric:- Identify and remove bottlenecks in the process
- Automate parts of the follow-up process
- Improve product or brand education materials
- Monitor and adjust outreach timing strategies
- Tailor communication to the potential client's needs
5. Revenue from New Distribution Points
The total revenue generated from the newly established distribution points
What good looks like for this metric: Increase initial revenue by 15% within 3 months
How to improve this metric:- Offer introductory deals to incentivise sales
- Monitor stock levels at new locations
- Provide ongoing support and promotions
- Gather feedback and adjust offerings
- Encourage repeat orders with loyalty programmes
How to track Growing retail distribution metrics
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your metrics.
