How can retailers quantify the performance of their store?
Have you ever wondered if you’re using the right strategies to improve the performance of your store? If yes, it means that you already know the importance of the so-called “SmartData”.
Having doubts is totally justified, especially if you do not have the right technology to really quantify the benefits brought by the strategies applied in the store. The only solution is to measure: it’s not just about knowing how much money you’ve earned at the end of the day, but it’s about finding new ways to improve commercial efficiency.
So which are the right metrics to calculate a store’s productivity? Which are the KPIs to consider?
How to determinate how many customers have entered your store during the last month, week or day? You can, and must, measure the evolution and distribution of their turnout during the day (for hours, minutes etc.): in fact, these data can help to understand if you’ll need to adopt new marketing strategies to boost the sales.
To do this, it is essential to have a people counter device in the store.
TC Group Solutions offers the best solutions on the market for people counting: we offer different technology tools, able to gather a lot of information about the flow and the behaviour of customers.
One of the solutions is a pedestrian traffic reader, installed on the facade of the store, that is able to gather information about 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 tool, an input and output people counter installed at the entrance of the store: this tool can calculates the number of customers physically present in the point of sale, and how much 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 cross-linked with the TC Analytics software, to obtain the coefficients of attraction and conversion, and then use this data to improve store productivity.
- CUSTOMER’S CONVERSION AND ATTRACTIVENESS RATE
How many of the people passing in front of your shop, end up entering the store? And how many of them end a purchase, turning into real customers? Measuring the commercial performance is very important: it allows us to evaluate the effectiveness of our sales strategies, the availability of products in stock, the level of attraction of our windows shops, the 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 at any time (Visitor Conversion Rate), the percentage of potential customers that turns into real ones (Customer Conversion Rate), the Cost of Potential Clients (CPC) and much more.
- CUSTOMER REPETITION
The WI-Fi technology is the used through the Customer Repetition Device, which consist in a receiver that identifies how many customers have already entered the point of sale and how often. This percentage represents an important data that, crossed with other essential KPIs, can change the fate of an entire activity.
This metric, widely used by online stores to calculate the percentage of consumer loyalty, is very easy to obtain nowadays, thanks to WI-Fi devices, which allow to differentiate and identify the IP address of any smartphone, while maintaining the anonymity of users connected.
Although counting through these Wi-Fi receivers is not suitable for calculating attraction or conversion rates (as it is able to calculate only 40% of customer entrance), it is useful to calculate the repetition rate, as long as it is combined with the data stored by traditional counter-people devices.