STORE METRICS & KPI’STelling Your Story

Through the Numbers

MSA ConferenceBreakout Session 19

April 30, 2018

TRACY CUDE Chief Financial OfficerCrystal Bridges Museum of American Art

ANDREW ANDONIADISMuseum Store ConsultantAndoniadis Retail Services

Kirkland Museum of Fine & Decorative Art

CRYSTAL BRIDGES MUSEUM STORE

WHY METRICS MATTER

WE ARE MORE THAN RETAIL

We connect artists and visitors

We sell new memberships & host

member events

WE ARE MORE THAN RETAIL

We educate our visitors.

We help ensure repeat visitation.

WHERE TO BEGIN

COMMON DATA SET

Adjusted Visitationvs.

Total Attendance

Crystal Bridges:

449,846 633,821

= 71%

CBMAA VISITOR TREND

AVERAGE SALEHow much the customer spends per purchase.

Formula:Net Sales

Number of Transactions

Crystal Bridges:$2,419,406

59,068 = $40.96

SALES PER VISITORAverage of spending across all visitors

Formula:Net Sales

Adjusted Visitation

Crystal Bridges:$2,419,406

449,986 = $5.38

UNITS PER TRANSACTIONNumber of items sold per transaction.

Formula:Total Units Sold

Number of Transactions2.67

2.59

2.69

2.9

2.4

2.45

2.5

2.55

2.6

2.65

2.7

2.75

2.8

2.85

2.9

2.95

2014 2015 2016 2017

Crystal Bridges:173,07959,634

= 2.9

CAPTURE RATEThe ratio of visitors making a purchase.

Formula: Number of Transactions

Adjusted Visitation

Crystal Bridges:

59,073

449,843= 13.1%

CAPTURE RATE TREND

2016 average = 12.5%

2017 average = 13.1%

INVENTORY TURNOVERAn efficient measure of inventory investment.

Formula:Cost of Goods SoldAverage Inventory

Crystal Bridges:

$1,104,358$286,044

Crystal Bridges:

Goal = 3.0

= 3.86

CONTEXT AND PRESENTATION

Strategic and Operational Plans ▪ Tie your metrics

back to your plan

STRATEGIC APPROACH

Strategic Initiative

Objective

Output

Outcome / Metric

STRATEGIC PLAN EXERPT

▪ Initiative - Design and implement a capture rate improvement strategy to increase store traffic, sales, and to enrich the visitor experience.

◦ Output – Conduct a visitor services study with a focus on the retail experience that will deliver insights and ideas for improvement.

◦ Outcome – Implement new signage, lighting & space allocations to achieve a capture rate goal of 14% and a sales improvement rate of 20%.

Results: ▪ Capture rate improvement = 12.5% to 13.1% (vs 14% goal)▪ Sales improvement = 41% (vs 20% goal)

Objective:

Ensure fiscal responsibility and long term sustainability by growing and enhancing revenue streams.

CONTEXT AND PRESENTATION

Presentation Matters▪ Framing◦ Industry Benchmarks

◦ Comparative Data

▪ Audience ◦ Management vs Board

◦ Balance Between Numbers and Images

◦ Learning Lessons

Questions?

THANK YOU