Let’s start with the basis: the kpis of physical stores
Knowing the most important metrics of a store is basic for a retailer: being able to quantify the real benefits of, for example, a marketing campaign or a new strategy in progress is the only way to realize the real situation of the your business, and to make appropriate decisions to improve it.
To do so, the only solution is to measure: it is not only a question of knowing the end-of-day economic data, but of finding new ways to improve commercial efficiency.
So, what are the right metrics to calculate the productivity of a store? Which are the KPIs to consider?
Pedestrian traffic represents the number of people passing, year after year, month after month, day after day on a stretch of road. It is essential to be able to estimate the volume of potential customers of a commercial establishment, and make more accurate decisions in terms of commercial offer, organization of store staff, etc.
How many people walk on the sidewalk in front of your store? How many of them end up entering? Measuring the evolution and distribution of consumer turnout during the day is crucial: these data help us to understand if we need to adopt new marketing strategies to boost sales. To do this, it is essential to have a person counting device in the store.
TC Group Solutions offers the best solutions on the market for counting people: these are different tools, able to gather multiple information about the flow and behavior of customers. One of the solutions consists of a pedestrian traffic reader sensor, installed on the façade of the store and capable of collecting information on the number of people passing in front of the shop window, 24 hours a day and by time slots.
This information is then crossed with each other thanks to the TC Analytics software, to obtain the attraction and conversion coefficients, and, consequently, use these data to improve the productivity of the store.
How many of the people passing in front of your store end up entering? And how many of them complete a purchase, becoming real customers?
Measuring commercial performance is fundamental: it allows us to evaluate the effectiveness of our sales strategies, the availability of the products in stock, the level of attraction of our shop windows, the actual productivity of the staff, the preparation of the shop etc.
Only thanks to the two KPIs mentioned above it will be possible to calculate how many potential customers enter the point of sale at any time, the percentage of potential customers that becomes real, the Cost of Potential Customers (CPC) and much more.
Estimating the volume of potential customers is the key to the proper working of a sales point: in fact, significant differences in the number of pedestrians have direct implications on the profitability of the same commercial property.
The Cost per Potential Customer (CPC) crosses the average pedestrian traffic of a road with the average rent of the commercial premises of the same road, obtaining a result in euros for each potential customer passing in front of a shop window located on that same street.
Knowing the average pedestrian traffic makes it possible to estimate the volume of potential customers, a key indicator to make the high rents that a retailer pays for his shop profitable.
Moreover, an estimate of the possible volume of potential customers of a street or a shop can help a business make appropriate expansionist choices and even negotiate the prices of commercial establishments.