WE ASKED THE PETS+ Brain Squad, our monthly survey group of independent pet retailers and service providers, which key performance indicators (KPIs) they track in their businesses. More than a few said they operate organically, following their instincts rather than using data, while many indies stated they stick to basic sales metrics. A few standouts, though, shared the more detailed info that drives their growth.
With all of that in mind, we decided to bring in our favorite pet industry experts to lead a KPIs 101 class across a variety of categories. Combined, they offer insight and advice on 16 different metrics that when focused on will yield results. Even those of you who delve deep into your POS reports will find new opportunities for growth here.
Now, let’s get started.
why it matters: By focusing on this KPI, you can boost the revenue and value of each customer interaction, overall and in categories, without having to increase your number of customers or transactions. — Candace D’Agnolo, Pet Boss Nation
Revenue growth doesn’t have to involve bringing more customers through the door — it’s about maximizing the value of each one. Most people walking into a pet business plan to make a purchase. With the right strategy, you can influence what they purchase and how much they spend. This is why one of the most insightful metrics for any pet business owner to understand, track and impact is Average Sale.
This simple yet powerful KPI can tell you how much customers typically spend in a single transaction overall, as well as with individual sales associates, or a specific customer, vendor or product category.
Calculate your Average Sale by dividing your total revenue by the number of transactions during a specific period. For example, if your pet store generated $10,000 from 200 transactions, your Average Sale for that time period, for your whole business, would be $50. If your business sold 100 bags of dog food that totaled $4,000 in sales, your Average Sale in the category of dog food would be $40.
This KPI matters tremendously because it directly impacts your bottom line. A higher Average Sale means you’re capturing more value from each customer interaction, which can lead to increased revenue without necessarily requiring more customers or transactions.
Most POS systems calculate this metric automatically and even allow you to evaluate by employee. This may require new habits for processing sales within your staff, but it spotlights major opportunities for your business.
Everyone who works at your business generally gets the same type/quality of customer. So if Team Member A’s Average Sale is $35, but Team Member B’s is $65, that’s a $30 missed opportunity with everyone Team Member A assists. If they helped 300 customers that month (about 12 a day), you’re missing out on $9,000 a month in revenue potential from just one employee!
The difference between Team Members A and B is that B likely has more experience, more confidence, more knowledge of the products and services they’re selling, and better sales training. As the owner or manager of your business, it’s critical that you ensure everyone is trained up to the level of your best salesperson. It is absolutely possible!
Here are several approaches to help boost your Average Sale:
If you’re not already tracking your Average Sale, start today. This straightforward metric provides invaluable insights into your business health, your team’s selling abilities, and customer behavior. By understanding and strategically improving your Average Sale, you can significantly boost your profitability while still providing more comprehensive solutions and exceptional service to your customers.
why it matters: Knowing this number allows you to fine-tune rates and labor costs to reach your sweet spot of profitability. — Susan Briggs, The Dog Gurus
For pet-care providers, one indicator stands out as a key measure to monitor and improve: Payroll as a Percentage of Revenue.
One of the unique aspects of owning and operating a pet-services business is the need for numerous staff positions to generate revenue. Keeping payroll costs in line with the revenue generated is a lead measure to overall business profitability. In our experience working with pet businesses to improve profits and business value, this KPI reveals the most. The good news is once you start monitoring and focusing on improvement, it’s easy to make progress.
Start by calculating your Payroll as a Percentage of Revenue: Divide your total payroll cost (including wages, salaries, bonuses, benefits and employer-paid payroll taxes) during a specific period by your total revenue during that period, then times it by 100.
Aim for less than 50% as a minimum with a goal to get as close to 40% as possible while maintaining pet-care quality standards. Monitor monthly trends and take proactive steps to ensure goals are met.
NOTE: Your service mix will impact this measure, as labor-intensive revenue streams such as dog daycare tend to result in a higher KPI result. Don’t worry if your result is over 50% as this is common in pet services. Create a plan and monitor monthly to see improvement using one or all of these tips:
Susan Briggs is a Certified Professional Animal Care Operator, author, speaker, and pet care-business expert. As co-founder with Robin Bennett of The Dog Gurus, a provider of training programs and resources for pet-care businesses, Susan has more than 25 years of experience in the industry with 12 years as co-owner and co-operator of a successful dog daycare, lodging, grooming and training business. She also used her accounting education to author Counting Noses: Accounting and Financial Management Guidelines for the Pet Services Industry. Get more KPI insights and personalized education for owners and their teams at thedoggurus.com.
why they matter: ‘Hire and hope for the best’ leads to costly high turnover. Instead, track key data to improve the recruitment process and find the right candidates for your business. — Joe Latona, WalkerScout
When it comes to KPIs in employee recruiting, the numbers prove easy to access and understand, and they don’t require complex calculations. Here are nine to track, with benchmarks for the industry and tips on how to improve your efforts and meet them.
The number of views you want varies by size of market, but in medium to large cities aim for a minimum of 500 job views before making a hiring decision. By analyzing job-post views, you can evaluate the effectiveness of job titles, brand reputation and wages offered, and make adjustments.
TIP: Stick to simple job-post titles so the job board can easily place your opportunities in search results.
AdvertisementA good conversion rate would be 4-6%. You can make a hiring decision at any rate, but you will need more job-post views if you have a lower conversion rate.
TIP: Display a 300- to 400-word post for entry-level positions so that informed, motivated candidates can quickly reach the application stage.
Aim for 25% or higher here to increase the number of quality candidates you have to consider for an open role.
TIPS: Design a mobile-friendly application that requires 50 clicks or less to submit. Ask only what you need to know at this phase of the hiring process. Questions that can be answered with clickable options will yield better results than typed answers.
20% or more of applicants to an entry-level position should be able to move forward to an interview.
TIP: Determine if your barriers to entry are needs or wants. For example, do you need someone with five years of related experience, or could they come on board with fewer?
Ideally, 20% or more of invites will lead to an interview.
TIP: Send invites quickly via email and text. Use scheduling tools and virtual platforms.
You want an OAR of 90% or higher.
TIP: Keep the lines of communication open with stronger candidates. You may also need to negotiate a higher wage for more experienced applicants.
If a paid job board sources less than 10% of candidates, move that budget to a board with better results. As a recruitment process-outsourcing provider, we use Indeed to fill most entry-level positions.
TIPS: Explore unique boards such as Snagajob or Handshake. Supplement job board listings with referrals, a career page on your website, Google Careers, social media, and ads at your business.
This number should include any costs associated with posting, the hourly cost of your or your hiring manager’s time, plus any services you use.
TIPS: You can’t skip steps in a recruitment process. A bad hire will cost the company more. If you need to reduce costs, reduce sponsorship on ineffective job boards. Never remove critical steps such as obtaining professional references, verifying work history and criminal background checks.
The average time to hire is 28 days, but it can range from much faster to 60 days.
TIP: To speed up the process, look at where it slows down. Do you need greater candidate volume, better candidates for review, more candidates interviewed, or a higher rate of job offers accepted? In many cases, the slowdown often will involve low wages.
Joe Latona founded and leads WalkerScout, a recruitment process-outsourcing provider. With 17 years experience in pet care and 15 in human resources, his company supports small businesses operating within the pet-care industry. WalkerScout provides a scalable, fast and fair workflow for candidates, improving the chances for stronger candidates to accept job offers, and saves clients a significant amount of time per hire. Learn more at walkerscout.com.
why it matters: Learning how to buy products that sell and drop those that don’t will boost the profitability of your business. — Lynn Switanowski, Pet Retail Helper
Running a successful pet business means balancing operational efficiency and customer satisfaction. To achieve the perfect balance, the key metric every pet business owner should focus on is Inventory Turnover. Mastering this can significantly boost your store’s profitability and help you make smarter product decisions.
Inventory turnover, or simply turn, measures how often you sell and replace your stock within a period. For pet stores, aiming for around six to eight total turnovers annually is a solid benchmark, though adjusting is a critical step during seasonal times of the year. For example, stocking flea treatments in spring or cozy pet bedding in winter to align inventory with customer demand.
To improve turnover, you should leverage your sales data to identify high-margin items and position them in prime shelf space to encourage faster sales. In order to optimize future product decisions (whether to expand, maintain or discontinue items), retailers must adopt a structured, data-driven approach.
Here are refined strategies to sharpen your analysis and ensure inventory aligns with demand and profitability:
Now that you’ve identified what you have and how it is (or isn’t) working, it’s time to cut the items/brands that are no longer working. You should consider discontinuing items if they:
The key to sustaining success for your pet business is to regularly review your key performance indicators using tools such as POS analytics and combining this data with customer feedback. This approach ensures your product mix stays aligned with demand and that your store remains flexible (and focused) in a very competitive market.
Lynn Switanowski knows pet retail. As a 30-plus year retail industry insider, Lynn helps pet businesses learn the skills necessary to adapt, survive and thrive in today’s crowded retail marketplace. Lynn and the Pet Retail Helper team focus their efforts on providing pet retailers with solutions to business challenges that help to drive immediate sales and profit. Not in two years — but in less than two months! Learn more petretailhelper.com.
why they matter: You don’t need more numbers, you need the right numbers to make data-driven decisions. Track these KPIs to move the needle and impact your bottom line. — Matt Aldrich, Pet Engine Marketing
The marketing funnel is simple: Move people from awareness at the top to purchase at the bottom. At the top, KPIs measure how many people see your business. At the bottom, KPIs measure conversions such as visits, bookings or sales. The more qualified people you attract at the top, the more conversions you’ll get at the bottom.
Let’s break down the top- and bottom-of-funnel KPIs for four key marketing channels:
Local SEO helps your business appear when nearby customers search for what you offer on platforms such as Google Business Profile, Apple Maps and Yelp.
Top Impressions: Impressions show how often your business appears in local searches. Pet parents can’t visit or buy from you if they can’t find you. Look for consistent growth, even 100-200 new impressions per month signals increased visibility.
Bottom Clicks for Directions: A click for directions usually means a visit. Analyze trends tied to promotions or to seasonality.
Email marketing is one of the highest-ROI tools in your stack, providing direct access to customers.
Top List Growth: Every new subscriber is a lead who asked to hear from you. Whether they signed up in store, online or through a giveaway, growing your list means more visibility. Aim to add 10-25 quality new subscribers per month.
Bottom Sales, Bookings, Form Fills: How many subscribers open, click and convert? If you’re not tracking this, you’re missing a clear line from email to revenue. A 2-5% conversion rate from email to action is a healthy benchmark.
Social media builds visibility, community, and personality, but KPIs should go beyond engagement.
Top Reach: Reach tells you how many people see your content. More reach means more brand awareness. Steady growth month over month is the goal.
Bottom Followers or Direct Messages: Follower growth signals interest, but DMs often lead to business. A message can turn into a lead or a booking. Prioritize content that drives action to get 5-10 genuine inquiries per month.
Your website is your 24/7 salesperson. Whether visitors come from search, social or email, your site should convert.
Top Total Traffic: Website traffic tells you how many people visit your site and where they come from. If traffic isn’t growing, sales probably aren’t either.
Bottom Sales or Bookings: Track purchases, appointments or form fills. If they’re not happening, something is blocking conversions. A 1-3 conversion rate on your website is the standard starting point for most small businesses.
Ready to Get Started?: Marketing without measurement isn’t a strategy, it’s a shot in the dark. Start tracking the right KPIs so you can stop guessing and start growing by following these steps:
Start small to stay consistent, and let the numbers guide your growth.
Matt Aldrich is the founder of Pet Engine Marketing, a results-driven digital marketing agency dedicated to helping pet businesses achieve measurable growth. With years of experience in independent pet retail and leading marketing campaigns, he combines his industry expertise and problem-solving creativity to elevate pet brands. He also co-founded the Pet Industry Network. Learn more at petenginemarketing.com.
Since launching in 2017, PETS+ has won 24 major international journalism awards for its publication and website and was a finalist for Best Single Issue in the prestigious Neal Awards in both 2017 and 2024.
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