Retail World

Why care about pedestrian flow?


From the analysis of a store, different performance indicators can be obtained on customer behavior. In addition to being able to count the number of people entering the store, valuable information can be obtained on how many of them make a purchase, how many leave the store empty-handed, or how many potential customers pass in front of the window.

So why install people counters in our shop? And how can this tool help us optimize store results?

  • Optimal staff

The pedestrian traffic on the street undergoes variations according to many factors: it changes according to the hour, the day of the week, the commercial or public establishments present in the area and the opening hours.

The flow of pedestrians varies constantly, and consequently, also our potential customers: it is not the same being in a shopping centre or in a busy street, in the city centre or in the suburbs. Likewise, there will be differences in attendance between a weekday or a holiday, or even at 9:00 am in the morning compared to 7:00 pm in the evening.

Owning certain information, it is essential to adapt opening and closing times and staff shifts based on the number of customers: if there is not enough staff at the right time, both sales and the customer’s shopping experience may be affected.

  • The attraction rate

How much attention does your shop window attract? How many of the people who pass by, remain so fascinated that they decide to go inside the store?

This is very important information: in fact, analysing the points of sales without calculating the external traffic could lead us to wrong conclusions. Let’s make an example:

In Sesame Street it is estimated that, every day, a total of 1000 peoples pass in front of a store, and 100 of them end up entering in it. In Fulanito Street, on the other hand, every day 100 people pass in front of another shop window, and only 20 of them end up entering.

If we only consider the people inside the store, without analysing the flow of external traffic, it would seem that the shop in Sesame Street works much better than the other. Instead, if we calculate the average pedestrian traffic on the street, it is easy to realize that the attraction rate of the shop in Fulanito Street significantly exceeds forecasts: it is able to attract twice as many customers as it passes its storefront.

Are your windows shops well-kept? Can the store staff attract people’s attention? Are promotions and special offers visible?

These questions are essential for optimizing sales points in accordance with real data.

  • Cost per potential customer

The rents of commercial establishments change according to pedestrian traffic. The price per m² will not be lower on a secondary road than on a main one. It’s logical: the higher the number of people on the street, the higher the chances of increasing in-store sales.

If we know the number of people passing in front of our store, our attraction and conversion rate and the average ticket value per customer, we can easily get the maximum price to pay per m² thanks to a simple equation.

This simple calculation gives us bargaining power, and at the same time provides a realistic view of the results of our business.

  • Weather forecasts

Generally, in good weather people are more inclined to walk and shop more willingly. Likewise, rain and bad weather have a negative impact on pedestrian traffic. So how do you know the effect that climate change can have on sales?

At TC Group Solutions we have precise tools to measure in&out pedestrian traffic and help retailers optimize sales and results.

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