How to analyze a store?
In an age where technology is leading and where the internet competes with physical commerce at every level, retailers must reinvent themselves if they don’t want to die.
The online world has led us to define new formats, create new experiences for the customer and invent new technologies to generate new metrics, new KPIs.
The challenges of physical stores are increasingly complicated, and in the desperate search for omnichannel: location and negotiation of rent, optimization of staff and management of queues at the checkout, definition of objectives and compensation, knowing which windows shop invite more people to enter or which layout pushes customers to buy more.
It is no longer surprising to see that many of the physical store owners do not care about the valuable information derived from customer behavior at all, but only pay attention to the cash data.
We identify consumer behavior patterns and design Customer Journeys: which way they move, what days of the week and at what hours they prefer to visit the store, what gets them inside, what drives them or stops them when they are about to make a purchase, if they repeat their visit frequently… and, at the same time, we analyze the attraction and conversion rates, the costs per impression (CPM) and the cost per click (CPC) in the different centers.
With this data, you will be able to know what you are actually paying for each potential customer who enters your online store, but how do we know the results of your physical store? Do you know the cost per click of your advertising campaigns but you don’t know what you generated in-store?
The metrics are the same, the business too… why not use these indicators to improve the results of physical stores?
Thanks to point-of-sale technologies, we were able to learn from the online world, transform its performance indicators and adapt them to the physical world, to the peculiarity of any surrounding.
For example, the number of people entering the store in a given time period is one of the most important indicators for a retailer: combined with the receipts issued, it allows us to calculate the attraction rate or conversion rate, which answers this question: “the sales do not rise because nobody enters the store or because whoever enters does not buy anything? “.
The conversion rate and its correct analysis are very important to be able to make correct decisions, but also a careful analysis. For example, if the shop is open from 9 to 20, is the conversion rate constant throughout the day or does it mark peaks or collapses in a few hours?
Knowing and interpreting the evolution of this indicator is important: if it tends to decrease in the hours with more entrants, perhaps an extra salesman is needed in these situations.
The same reasoning applies in relation to the days of the week: do more people enter the store at weekends, but proportionally buy more? A decline in the conversion rate over the weekend may indicate a lack of staff.
TC Group Solutions offers a complete range of person counting hardware and sensors to measure and improve the performance of physical stores, accompanied by a complete and easy-to-use software to analyze the collected data, the TC Analytics.
Moreover, the demo is free! What are you waiting for to try it?