In any industry, performance analytics help companies judge the success of various efforts to produce results. Without these analytics, company leadership would be forced to rely on qualitative information – and assumptions – as their gauge.
For retail, the goal is multilayered. Not only are retailers charged with attracting consumers to their stores, but they must convert those shoppers into product buyers.
And a significant opportunity exists to increase conversion by leveraging data that uncovers the door-to-door improvements that entice buyers.
Retailers pour money into various marketing strategies – from coupon distribution to ad placements to on-the-ground promotional campaigns – to attract as many consumers as possible. Then sales are compared side-by-side to marketing efforts to measure each campaign’s success.
At the same time, in-store promotions; extensive interior design and renovations; and customer service are constantly tweaked to enhance the overall shopping experience. Again, success is measured by comparing changes in sales numbers to the start/stop of in-store initiatives.
But what about customers who entered the store and left without purchasing? In this particular scenario, they have been overlooked – which may be a costly mistake. It’s likely your marketing dollars brought them to the store, but now it’s as if they were never there. And – most importantly – retailers will never know how to evolve future efforts to convert those browsers into buyers.
It all starts at the front door – counting every single person who enters the store. Avoid excluding shoppers based on predetermined factors, because every shopper may be a potential buyer. People counting forms the basis for a roadmap to operational improvements.
But along with an accurate count of everyone in the store, retailers need to know how many make it through checkout versus those who leave without buying. High-tech thermal sensors positioned over checkout – much like those now installed over the entrance/exit doors – gather information at the front end.
Integrate the data collected by the entire system, and you have a wealth of analytics about your shoppers’ behavior. Most importantly, you have extensive information to compare with sales numbers, marketing efforts, staff allocation and more to ensure your stores are running as efficiently as possible.
Step one in increasing your conversion rate is knowing what it is. With the analytics produced by an advanced people counting and checkout management system like that of Irisys, retailers are provided with a guide to improving each store’s individual performance – which begins with converting shoppers into purchasers.