The right way to measure
Today, people counting solutions can offer a great Return of Investment (ROI) for retailers, if they use the data that these systems generate to analyze and improve their performance in key operational areas. When information from pedestrian traffic counting systems is combined with other metrics, the resulting analysis gives retailers more deep information on:
- Real conversion rate
- Pedestrian traffic with daily / weekly / monthly / annual variation
- Effectiveness attraction rate of store windows
The data collected by the POS show the quantity of goods sold and the moment in which the transaction took place. However, if we do not know the exact number of in-store shoppers who have not made a purchase, there is no way to measure the real sales conversion rates.
Using TC Group Solutions‘ people counting intelligence technologies, which can calculate the exact number of people in a store at any given time, and combine this information with data obtained from POS, retailers can determine the real capacity of your store (and staff) to convert visitors into buying customers.
Establishing this type of conversion rate is essential: it allows retailers to determine how these rates differ according to time of day, day of week and month, and to calculate the impact of advertising and promotional activity. Moreover, it is also possible to determine the store’s performances based on the analysis of the competence.
Change on external or internal pedestrian traffic
In addition to providing a more detailed picture of the conversion rate, people counting solutions are integrated with historical data, which can provide concrete information on the exact time (day, month or year) in which the highest numbers of people were in-store.
This is essential information for the management of what is generally the second most important source of revenue for a retailer: the store staff. With accurate information on the traffic flow according to certain moments, retailers will be able to know exactly the perfect number of staff needed for each hour of the day, and, as a result, will be able to plan the store team’s schedules with full knowledge.
Retailers who invest in people traffic sensors located throughout their store (as well as at entrances and exits) can collect even more valuable data.
For example, if a store has high traffic but relatively few sales, there may not be enough staff to help customers find what they want, or even that the staff, due to lack of experience or expertise, is unable to conclude sales. These workers may need to be supported by more experienced employees or may need a refresher course on sales techniques.
In conclusion, without analyzing the foot traffic data, it would be difficult for retailers to identify the nature and causes of these challenges.
Retailers and brands invest heavily on promotions and the appearance of their store windows because they know that details can motivate or, on the contrary, discourage interest in a product.
But, in addition to monitoring sales regarding offers / promotions, how can retailers determine the impact their shop windows have on sales?
By measuring how many customers pass in front of a store, retailers can determine how effective the shop windows look to attract customers’ attention to a busy store environment. Thus, using the POS data it is possible to track the sales of the item on offer, and actually check whether the customer’s interest has actually been converted into a sale.
These are just a few ways to maximize the results achieved by Retail Intelligence technologies, and convert initial investments into real benefits for your store.
Since 1997, TC Group Solutions has been collecting millions of sensor data from around the world to help retailers increase profits, business efficiency and improve services.