Counting and knowing your business

Know Your Business With Counting   

 

Footfall

 

‘Footfall’ is the number of people who enter your shop during normal business hours.

 

Having access to an accurate count of your shop’s footfall will enable you to know how your business,  or particular store, is performing.

 

Footfall traffic details can immediately tell you:

1 -  How busy a store is on a particular day or time

2  - How effective your marketing is in attracting people into your store

3 - How the weather effects footfall


 

When you combine

footfall figures with sales transactions

the insights get even better


 

Conversion Rate

 

Conversion Rate is the number of people who enter your store and purchase an item, i.e convert into paying customers. For example if 100 people enter your store and you have 68 sale transactions, your conversion rate is 68%.  

 

Being able to accurately measure conversion rates will enable you to make key decisions on:

 

1 - Identifying the most effective store manager

2 - The effectiveness of  a promotion or sale

3. - Staffing levels

 

You will be able to compare the efficiency of staff against other stores in your chain and make certain staffing decisions and changes.  You will be able to see if the changes you make are resulting in the conversion rates improving or deteriorating and can adjust staffing levels / display stands / promotional campaigns quickly.



 

Some interesting case studies from retailers who use the Usee Footfall cloud, which shows the power of knowing your business.

 

Case Study - Turnover rising but conversion rates are falling

A store owner noticed that his turnover was rising but the conversion rate was falling.   Prior to installing Footfall, the retailer would have only have looked at his sales and seen a rising graph. The retailer would have been happy to know that while his turnover was increasing, more people were visiting the shop.  However, due to longer queues and harried staff on the shop floor,  a number of discouraged people were leaving without purchasing.  With this information, he was able to meet with the store managers and change staffing levels according to the peak times in footfall.   Subsequently, his conversion rate, and turnover, continued to rise.   His staff were much happier too, which reflected back on the customers.


 

Case Study - Weather effects

A retailer noticed a significant difference in the conversion rates between two stores in the same town - one in a mall and the other on a main street. He discovered that when it was raining, the store on the main street suffered a decrease in conversion rates. More people were entering the shop, but to come in out of the rain rather than to purchase anything.  Unfortunately, with the increased numbers in the stores the staff were unable  to deal with genuine customers. The retailer took the unconventional decision to install an awning at the shop front.  This gave people somewhere other than inside his shop to shelter from the rain, but also offered an attractive window display to people who may not have taken the time to look before.  He noticed this resulted in more genuine customers entering the shop, increasing his conversion rate on rainy days.


 

League tables

A great promotion for staff morale and sales encouragement is the league table. Set up your conversion league table and offer a prize / bonus to the store that achieves the following.

1 -  Top conversion rate at month end

2  - Biggest improvement on conversion rates

3  - Any improvement

Its a great way to motivate staff and managers as it encourages staff to be more engaging with customers and time efficient, and the reward is given to the harder working staff instead of the busiest store in a convenient location.   Stores constantly in the bottom of the league can come under more scrutiny and  can adopt the practices of the more successful stores, or managers can be switched between locations.