Using analytics in retail Facilities Management is a no-brainer, but such actions lack value when not tracking the right KPIs.
Retail is under tremendous pressure and one of the most competitive industries in existence. According to the National Retail Federation, retail supports 25 percent of American jobs, and there are more than 3.79 million retail establishments in the US. Furthermore, retail contributes more than $2.6 trillion to the total gross domestic product of the US. This segment represents an insurmountable number of individual locations, which reflects an equally large number of retail Facilities Managers. To improve business practices and facility conditions, Facilities Managers need to understand a few things about the industry and the application of analytics in retail Facilities Management.
The Challenges of Retail Facilities Management
Retail Facilities Management is filled with challenges, especially the impact that facility condition may have on guest experiences. The right floor layout can increase profitability by encouraging customers to shop longer and spend more money. Meanwhile, the wrong layout will breed frustration and hostility.
Poor Facilities Management in retail establishments also adversely affects employee productivity, as well as mood. Angry, upset, and uncomfortable team members are more likely to take their frustrations out on guests, which can have lasting consequences and damage brand. A single bad review on social media could cost a retailer hundreds of potential customers, but that is not the full scope of the problem. Additional challenges in retail Facilities Management include:
- An aging number of buildings used for retail establishments.
- Inability to collect and leverage energy-consumption and facility data.
- Greater risk of team member and customer accidents due to hazardous conditions.
- Changing climate models that require more frequent maintenance of facility assets.
- Increasing costs on the part of utility companies.
- Multi-site portfolio management and limited Facilities Management budgets.
How Analytics in Retail Facilities Management Build Brand Value
Analytics provide a means to an end in achieving lower retail facilities spend and improvement of aging building assets. However, the best plans for asset maintenance will still incur the costs associated with repair or replacement. The key to using analytics is capturing data through the Internet of Things and smart devices, reports FacilitiesNet, extending the life expectancy of such assets to their maximum potential. This can reduce replacement costs, enable energy-efficient asset runtime, reduce risk to building occupants, accommodate changes in climate, reduce energy consumption, and enable centralized Facilities Management. This builds brand value.
The Top Key Performance Indicators (KPIs) You Should Be Using Analytics to Effectively Track
Knowing how analytics in retail Facilities Management benefit an organization is only half the battle. Retail Facilities Managers should start tracking these essential KPIs to reduce maintenance spend, lower energy costs and improve efficiency.
- Vacancy energy use.
- The average age of assets by system type.
- Cleanliness of the facility.
- Performance of critical assets.
- Heat flows from food-prep areas.
- The number of customers per day.
- Customer feedback.
- Average energy cost per customer.
- HVAC system energy use and air supply data.
- Total maintenance spend versus savings.
Start Tracking These KPIs Through Analytics in Retail Facilities Management Now
The importance of retail success cannot be overstated. Retail is an integral part of the U.S. economy, and, therefore, it plays a vital role in the world economy. Facilities Managers need to start using smart technologies, like the Internet of Things and Big Data analytics, says FacilitiesNet, to gain insight into their facilities and make informed decisions. For help in determining which additional KPIs can put your business on the path to success, contact ENTOUCH online or by calling 1-800-820-3511 today.