How to analyze the KPIs of a store
E-commerce is becoming more and more important: according to a study, 70% of consumers buy a product online at least once a month. This phenomenon, in addition to increasing the value of the average receipt for all online operations, has pushed up spending on the Internet, at the same time reducing sales from traditional stores.
The physical commerce, for its part, seeks to redevelop new spaces to offer a satisfying and unique experience, favoring those who are in positions with a high pedestrian flow, and consequently, with greater sales opportunities. For this reason, knowing the most profitable locations is an advantage at the moment of having to decide where to open, for example, a new store.
The e-Commerce KPIs applied to the physical store
In online stores, consumer behavior data is collected and analyzed, and represents an unparalleled resource for optimizing customer results and experience. Each visit is recorded, in order to obtain information on the complete behavior of users on the website and increase sales thanks to initiatives based on the data collected. For example:
- How many people have visited the site?
- How long did they stay inside?
- Which are the most visited pages and products?
- Did all the marketing campaigns have had the expected response? Has the conversion rate increased?
These are invaluable information, which allow better budget management, as well as the implementation of marketing campaigns.
These same identical information can also be measured in the world of physical commerce: analyzing data makes it easier to make decisions based on real numbers, and consequently improve KPIs and revenues.
How to reduce the costs of a store?
In the physical store there is a fundamental resource that does not exist in an e-commerce: it’s the store staff, and its relationship with potential customers entering the store. This precious medium, if properly used, is the key to optimize the organization and reduce the general costs of a retail activity. In fact, the KPIs related to staff interactions with customers and the store that are fundamental:
- The relationship between staff and potential customers: if in the morning an average 50 visits per hour enter the store, is there enough staff available to wait for all customers? How does the number of visits during the day evolve? Is the average pedestrian flow the same throughout all the week?
- Revenue from staff and potential customers: distinguishing entrances and exits of store staff from the rest of the revenue allows you to measure a more precise data, and therefore, reduce or cancel the margin of error in the key performance indicators.
- Interaction time between staff and potential customers: knowing the interaction time between customers and store staff helps us to understand if there are obstacles of any kind in the store (queues that are too long in the checkout, a hot area with interesting products, a hitch in the client’s journey…)
Cross data: E-commerce VS physical store
Analyzing the data is important, but also having the possibility to cross-check and compare them in personalized rankings. For example, a way to cross-reference a customer’s data online & offline is obtaining a specific conversion rate for loyal customers and one for new ones: in this way, fidelity cards are transformed into a tool with which to identify the transactions carried out by the same consumer in each channel.
The data analysis allows to reveal and provide some models of consumer behavior to act accordingly: the challenge is to order these unstructured data to obtain an exact analysis, which allows the correct decision-making process in real time.
Retail Intelligence technologies are based on the collection of raw data, their analysis and transformation into key indicators that the retailer can use to make strategic decisions.
TC Analytics is a complete dashboard with which retailers can monitor the pedestrian flow in their stores, in the same way as in online stores.