The importance of data analysis
Data are nothing more than a set of information that allows us to have a more accurate view of what is happening in our business, and therefore helps us to know the weaknesses and strengths of this. In the retail sector, data analyses are focused on adapted metrics (KPIs) that allow drawing realistic and adequate conclusions to be able to make decisions.
Maximizing performance is impossible without resources being directed to the right place at the right time. Therefore, to make decisions about the operation of a trade it is necessary to know the data that allows us to make the best possible decisions to optimize resources. These data can be very varied, from the volume of pedestrian traffic that passes in front of our store, the average stay time or the recurrence of customers.
How to obtain your business data?
Many businesses only consider sales revenue to calculate profitability. But, is this indicator enough to calculate your gain?
A shop located on a main street in the center of the city will not have the same pedestrian traffic as a secondary street. A priori, the store located on the main street will have higher income, but this does not necessarily mean that it is managing resources better. Measuring the pedestrian traffic entering the store versus the one passing by allows us to obtain metrics such as the attraction ratio, which are much more reliable over performance.
- Do you know how many people pass in front of your shop windows?
- How many people stop to watch them?
- How many people stop and enter the shop?
- How many of those who enter buy?
These questions are important since knowing the answers allows you to have a real idea of how your trade is working and obtain valuable data on costs per customer or the attractiveness ratio.
To obtain this data it is necessary to use people counting tools. Just as when browsing the internet, we leave a trail that can be stored and analyzed, and these counting tools allow us to measure the pedestrian flux, to know the frequency of visits, the movement of customers inside the store…
All these data allow answering the questions made can be obtained by the mentioned counting sensors that through traceability systems generate reports with which to have a concrete vision of the activity of our business.
There are different tools that allow collecting, processing and quantifying all these data. At TC Group Solutions we have tools such as TC-Analytics to help physical traders obtain data on pedestrian traffic and obtain adapted metrics.