These stores operate at a very small scale, not a lot of tools are used to measure their performance. Using some marketing metrics that measure their performance and financial aspects would be great. A performance metric is a measurable quantity that indicates some the performance in some terms. It is also called as performance index or even benchmarking.
Performance metrics should be valuable and practical, be measurable, have a classification, indicate progress towards a goal, and a metric that answers some specific questions about the performance.
Some of the other marketing metrics that can be used for these mom pop stores are: * Return on investment * Customer satisfaction/retention * Cost of Good Sold
Return on Investment (ROI)
It is a percentage to measure the amount that has been spent. If we are making profit more than the amount we have invested, we are getting a good return on our investment and if it’s the opposite we are not doing well.
ROI = (Profit – Amount invested) / Total Investment
These stores are small and don’t really offer a lot of variety to sell so measuring the
References: Kotler, P., & Keller, K. (2009). Marketing Management (4th ed.). Upper Saddle River, NJ. Marketing Accountability Study. (2005). (White Paper), American Marketing Association