How to calculate the efficiency of your store?
Have you ever wondered if you’re using the right strategies to improve your store’s results and profitability? If so, it means that you know the importance of data analysis.
Having doubts is totally justified, especially if you do not have a tool to really quantify the benefits brought by the strategies applied in the store. The only solution is to measure: it is not only a question of knowing the earnings at the end of the day, but of finding new ways to improve commercial efficiency.
What are the right metrics to calculate the productivity of a store? What are the most important KPIs to consider?
How to calculate how many customers entered your store during this last month, week or day? We can and must measure the evolution and distribution of their turnout during the day (for hours, minutes, etc.): in fact, these data help us to understand if we need to adopt new marketing strategies to give impetus to the sales. To do this, it is essential to have a person counting device in the store.
TC Group Solutions offers the best solutions on the market for counting people: these are different tools, able to gather multiple information on the flow and behavior of customers.
One of the solutions consists of a people counter, installed on the façade of the store and capable of collecting information on the number of people passing in front of the shop window, 24 hours a day and by time slots.
Another of the possible Retail Intelligence solutions is the In & Out module, an input and output counter installed at the point of sale entrance: this tool calculates the number of customers physically present in the store and the time they remain inside.
Both of these hardware devices are completely independent, they do not need access to the store’s ADSL connection and do not interfere with the store management system.
This information is then crossed with others info, thanks to the TC Analytics software, to obtain the attraction and conversion coefficients, and, consequently, use these data to improve the productivity of the store.
ATTRACTION AND CONVERSION RATE
How many of the people passing in front of your store end up entering? And how many of them complete a purchase, becoming real customers? Measuring this data is fundamental: it allows us to evaluate the effectiveness of our sales strategies, the availability of the products in stock, the level of attraction of our shop windows, the actual productivity of the staff etc.
Only thanks to the two tools mentioned above it will be possible to calculate how many potential customers enter the point of sale (Visitor Conversion Ratio), the percentage of potential customers that turns into real (Customer Conversion Ratio), the Cost per Potential Customer (CPC) and so on.
NUMBER OF REPETITION
WI-Fi technology is then used through the Customer Repetition module, consisting of a receiver that identifies how many customers have already entered the store and how often. This percentage represents a fundamental fact that, crossed with other essential indicators, can change the fate of an entire activity.
The frequency and repetition of visits have only one meaning: loyalty.
This metric, widely used by online stores to calculate the percentage of visitor retention, is very easy to obtain today, thanks to WI-Fi devices, which allow differentiating and identifying the MAC address of any smartphone, while maintaining the anonymity of the connected users.
Although counting through these Wi-Fi receivers is not suitable for calculating attraction or conversion ratios (since it is able to calculate only 40% of customer revenue), it is instead useful for calculating the repetition rate, as long as it is combined with the data stored by traditional person counting devices.