Retail World

The Cost per Potential Client: an online and physical KPI in retail


The Cost per Potential Customer is an indicator that measures the cost you pay for each passerby that remains “captured” by your shop window, and that, therefore, is inclined to enter the store to convert, with a little luck, into a future client.

This indicator compares the cost per m2 of different places according to the pedestrian traffic, therefore it does not give a value to the location based on the brute cost, but according to the store’s potential to attract customers.

All these KPIs allow you to learn more about your customers’ behavior and optimize results, staff shifts and know the results of your campaigns / promotions in real time.

What is the Cost per Potential Client in the online world?

In an online store, the Cost per Potential Customer represents the cost paid by the e-commerce owner for each user that is attracted to the web page while browsing.

In the online world, shop windows serve as an advertisement, and for this reason the CPC is equivalent to the Cost per Thousand (CPM) of an online campaign (cost paid to generate 1000 impressions to potential buyers): we create a display ad, and spend 5 euros per thousand impressions. In the end, we are paying 0.5 cents for each person who looks at the ad.

What is the Cost per Potential Client in a physical store?

The potential customers of a physical store, on the other hand, are those who pass in front of the point of sales. Therefore, location is a key factor for the success of a physical trade.

Generally the most expensive commercial establishments are located in the prime areas of the cities. These commercial roads are characterized by having a greater pedestrian flow, profitability, and, consequently, a much higher rent. So..

  • What is the relationship between pedestrian flow, profitability and the rent price of the locals?
  • What are the most profitable ways to open a store?
  • Is the rental price too high for the location?
  • Is there enough pedestrian flow to make the road profitable?

In physical retail, the CPC allows giving the right value to a commercial location, both in terms of potential customers and rental value.

The CPC of the main European trade routes is evaluated in the Pedestrian Traffic and CPC report. This indicator is one of the most important in physical retail: helps discover new shop opportunities and more profitable locations.

If you want to know the pedestrian flow of a specific road, on TC Street you will find more than 100 sections with pedestrian traffic data.

Un comentario en The Cost per Potential Client: an online and physical KPI in retail


    Knowing your personal goals is important when looking at individual online marketing KPIs. This is because the indicators are only a means for measuring whether previously-set goals have been achieved. Key performance indicators (KPIs) are figures you can use to measure the progress and success of the marketing measures in place.

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