The meaning of data analysis for retail commerce
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 its weaknesses and strengths. Data analysis in the retail trade is the analysis of the 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 our business data?
Many businesses only consider sales revenue to calculate profitability. But, is this indicator enough to calculate your profitability? How to measure the profitability of your store?
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 enter the shop?
- How many consumers buy something?
These questions are important since knowing the answers allows retailers to have a real idea of how their trade is working and obtain valuable data on costs per customer or the attractiveness ratio.
Retail Intelligence Tech
To obtain this data it is necessary to use people counting tech. Just as when browsing the internet, we leave a trail that can be stored and analyzed, these counting tools allow us to measure the pedestrian influx, to know the frequency of visits, the movement of customers inside the store…
All these affluence data extracted 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.