Rock Lobster
Executive Team Leader
- Joined
- Jun 11, 2011
- Messages
- 1,428
Hey Guys!
So I have noticed tons of rollouts in the past few years that receive negative feedback after we learn about them! I thought it would be cool to devote a thread to what we would like to see changed, improved upon, or implemented in the future at the store level and what we could see working well! I am sure tons of team members have great ideas, but often times voice "what went wrong" instead of "this is what they should have done or what they should do"...
My ideas are around the thought of going "Back to Basics" and offer changes I think could work well...
1) REDcard Metrics: The idea of driving the REDcard today is about signing up guests WHILE explaining the benefits so that they want to use it on every trip (driving loyalty). However, the stand alone metric of conversion does not reflect this goal (instead focuses on just signing up as many people as possible). My suggestion would be to revamp the way we score how a store is performing by making one single "REDcard Performance" metric...
REDcard Performance = ( Conversion X Penetration Rate ) X 100 with Conversion being scored with each REDcard counting as a full point out of 100 prompts and therefore changing the goal to 6.0% instead of 3.0% (same amount of REDcards, this is just for simplicity sake)... In this metric, green would be above a 1.0% and Red is below a .70%
Now while this may sound complicated, it is actually quite simple! An average store this year has 17.5% of guests already using the REDcard. If you achieve the goal of a 6.0% conversion and combine it, that is 1.05% as your total REDcard score! As your penetration decreases (the amount of guests who use the REDcard are less), the store will need do better on conversion to make up for that! On the same side as you improve penetration, the conversion goal itself is less! Your store is therefore rewarded for driving loyalty in a great way! The Top 50 stores in the company are in the 30's for penetration rate (with some of the most loyal guests around) and therefore it is difficult to consistently convert high numbers! To be green at 30% they only need to convert about 3.5%! However if they are top 50 for penetration AND convert high their score could sky rocket into the 2%... The reverse happens for the bottom 50 for these metrics!
This could be broken down into one of those marketing charts (a table with four squares... Low Penetration AND Low Conversion is Poor Performing, Low Penetration BUT High Conversion is Improving, High Penetration BUT Low Conversion is Maintaining, and High Penetration AND High Conversion is Top Performing store).
To go along with this as well, the prompting strategy needs to change as well! I would suggest only prompting for cash if the order is over $200 (or so) because a majority of cash users do not use cards at all and are no longer interested. However, I suggest we increase the prompting for normal bank debit cards since that is where the market would be for our product now. We would end up with the same amount of prompts this way and as you convert more and more debit users to Target debit the prompts would decrease for the store!
2) Instocks Update (Pick one and stick with it): Instocks needs to get back to basics in how the process is handled! It has gone through tons of changes and is inconsistent throughout the company! We need to bring back the focus around ad product instocks and tie it into this major process!
I suggest the Instocks Task List drop everyday with RSCH tasks for every store and include ONLY four foot sections that have "promotional" product in them! This means we are doing completely accurate ad walks again every single day and ensuring ad product is full on the shelf or at least has accurate OHs! That is where our sales are and needs to become the focus again! We should still have a single rescan day during the week to ensure all product is hit as well. Payroll for Instocks should be based upon the size of the ad then and generate accordingly (high ad weeks should be high sales weeks, therefore taking more payroll to maintain instocks in ad areas)...
3) Continue simplifying logistics: I believe all stores will be going all push very soon (I had suggested this before)... theoretically if all product is being pushed off the truck and then being sent to backstock, that removes the ONLY reason to not have STO have a built in Subt9999 function running on everything you backstock! Every single item you backstock will automatically do 9999 itself without any extra buttons, and therefore fixes one of the largest wastes of payroll for the company in a simple way!
So I have noticed tons of rollouts in the past few years that receive negative feedback after we learn about them! I thought it would be cool to devote a thread to what we would like to see changed, improved upon, or implemented in the future at the store level and what we could see working well! I am sure tons of team members have great ideas, but often times voice "what went wrong" instead of "this is what they should have done or what they should do"...
My ideas are around the thought of going "Back to Basics" and offer changes I think could work well...
1) REDcard Metrics: The idea of driving the REDcard today is about signing up guests WHILE explaining the benefits so that they want to use it on every trip (driving loyalty). However, the stand alone metric of conversion does not reflect this goal (instead focuses on just signing up as many people as possible). My suggestion would be to revamp the way we score how a store is performing by making one single "REDcard Performance" metric...
REDcard Performance = ( Conversion X Penetration Rate ) X 100 with Conversion being scored with each REDcard counting as a full point out of 100 prompts and therefore changing the goal to 6.0% instead of 3.0% (same amount of REDcards, this is just for simplicity sake)... In this metric, green would be above a 1.0% and Red is below a .70%
Now while this may sound complicated, it is actually quite simple! An average store this year has 17.5% of guests already using the REDcard. If you achieve the goal of a 6.0% conversion and combine it, that is 1.05% as your total REDcard score! As your penetration decreases (the amount of guests who use the REDcard are less), the store will need do better on conversion to make up for that! On the same side as you improve penetration, the conversion goal itself is less! Your store is therefore rewarded for driving loyalty in a great way! The Top 50 stores in the company are in the 30's for penetration rate (with some of the most loyal guests around) and therefore it is difficult to consistently convert high numbers! To be green at 30% they only need to convert about 3.5%! However if they are top 50 for penetration AND convert high their score could sky rocket into the 2%... The reverse happens for the bottom 50 for these metrics!
This could be broken down into one of those marketing charts (a table with four squares... Low Penetration AND Low Conversion is Poor Performing, Low Penetration BUT High Conversion is Improving, High Penetration BUT Low Conversion is Maintaining, and High Penetration AND High Conversion is Top Performing store).
To go along with this as well, the prompting strategy needs to change as well! I would suggest only prompting for cash if the order is over $200 (or so) because a majority of cash users do not use cards at all and are no longer interested. However, I suggest we increase the prompting for normal bank debit cards since that is where the market would be for our product now. We would end up with the same amount of prompts this way and as you convert more and more debit users to Target debit the prompts would decrease for the store!
2) Instocks Update (Pick one and stick with it): Instocks needs to get back to basics in how the process is handled! It has gone through tons of changes and is inconsistent throughout the company! We need to bring back the focus around ad product instocks and tie it into this major process!
I suggest the Instocks Task List drop everyday with RSCH tasks for every store and include ONLY four foot sections that have "promotional" product in them! This means we are doing completely accurate ad walks again every single day and ensuring ad product is full on the shelf or at least has accurate OHs! That is where our sales are and needs to become the focus again! We should still have a single rescan day during the week to ensure all product is hit as well. Payroll for Instocks should be based upon the size of the ad then and generate accordingly (high ad weeks should be high sales weeks, therefore taking more payroll to maintain instocks in ad areas)...
3) Continue simplifying logistics: I believe all stores will be going all push very soon (I had suggested this before)... theoretically if all product is being pushed off the truck and then being sent to backstock, that removes the ONLY reason to not have STO have a built in Subt9999 function running on everything you backstock! Every single item you backstock will automatically do 9999 itself without any extra buttons, and therefore fixes one of the largest wastes of payroll for the company in a simple way!
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