Is your store performing at its best?
If you work in the retail world, I’m sure that you have already heard the term KPI. In fact, to assess whether the management of a store is profitable and if the performances are going as expected, it is important to study certain key performance indicators, ie a set of specific parameters that each store can use to quantify the achievement of the targets. The analysis of these smart data is essential to make strategic decisions and optimize sales.
Why is it so important to know the main KPIs of a store?
In online stores, data on consumer behavior are collected and analyzed, and represent a fundamental resource for optimizing customer experience. Each visit is recorded, in order to obtain information on the complete behavior of users on the website and increase sales, thanks to initiatives based on the data collected.
At the same time, each retail company defines its KPIs based on objectives and priorities, and, very often, these objectives correspond to those online.
Unfortunately, very often, when examining the results of a store, retailers tends to focus on a certain type of information, the economic ones, such as:
- Total sales amount per hour
- Average value of the ticket
- Total sales value per m²
- Sales by staff
This indispensable information provides us only with data regarding the closure of sales, ie the results obtained from the numerous strategies implemented. These data are able to establish the achievement of objectives and assume with certainty what the future of the company will be. Unfortunately, they do not give any information on how to improve, where to concentrate the advertising effort, or on the critical points of our shop.
By studying the behavior of pedestrian traffic, and crossing the data in our possession with those on consumer behavior collected by in-store technologies, we can exponentially improve the profitability of the store. The only solution is to analyze the data: it is not just knowing the total sales at the end of the day, but of finding new ways to improve commercial efficiency.
So what are the right metrics to calculate the productivity of a store? What are the KPIs to consider?
- Conversion rate
Basically, it’s the relationship between the number of people who physically enter the store, and those that actually buy a product. This value is obtained by dividing the number of tickets issued by the number of entries.
- Pedestrian traffic
To calculate the number of customers who have entered the store, a person counting device is required. TC Group Solutions offers the best solutions on the market for this type of counting: they are installed on the façade of the store and collect information on the number of people passing in front of the window, 24 hours a day and by time slots. This information is then crossed with others variables 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.
- Regular customers
To calculate the percentage of regular customers, TC Group Solutions use a Wi-Fi technology, a module consisting of a receiver that identifies how many customers have already entered the store and how often. This metric, widely used by online stores to calculate the percentage of consumer loyalty, is very easy to obtain nowadays, thanks to Wi-Fi devices, which allow to differentiate and identify the IP address of any smartphone, while maintaining the anonymity of the connected users.
TC Group Solutions, a leader in counting systems to obtain the main business metrics in physical sales points, helps to measure the results of retail marketing strategies.