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Retail Analytics

3 Things every retailer should measure (that most don't)

retail-traffic-walkby.jpg

Written by Tony Loxton
Nov 23

The world has changed considerably for retailers over the last few decades. Thanks to ground-breaking developments in technology, such as people counters and foot traffic analytics, it is now possible for any retail outlet to gain a highly detailed view of practically any aspect of their store. This creates a great opportunity for the optimisation of the retail space, based on hard and accurate data.

But technology is very much a double-edged (digital) sword, as it has also fundamentally changed how consumers approach their buying experience and what they expect from those stores they choose to do business with. According to Deloitte’s Global Powers of Retailing 2017 report, “Consumption of ‘experiences’ has outpaced the consumption of ‘goods’ by a factor of three over the last two years. This means decreased share of wallet on non-durable and durable goods (particularly apparel), as well as declining foot traffic at mass retailers and department stores.”

With this in mind, retailers need to actively leverage available technology to retain their customers and succeed in the digital age. The best way to do this? Analyse and optimise by looking at the right customer metrics and taking necessary action before it’s too late. Here are three underrated metrics that every retailer should be measuring for the most insight into their store performance:

Walk-by traffic conversion

Walk-by traffic is arguably the most important metric for any brick-and-mortar retail store. This is because it is a direct indication of the effectiveness of the store location, which can then help you gauge the true value (and cost) of its lease and position in the shopping centre, for example. By comparing the number of people who enter your store to the number of people who walk past the storefront, you can calculate your walk-by traffic conversion rate and determine, for instance, whether declining sales is the result of a poor display or ineffective staff, or rather if the problem lies in the store’s location.

Average customer visit duration

By looking at the average time that a customer spends in your store, you’ll gain far more insight into your store performance than if you rely on a minimalist people counter. For example, you’ll be able to accurately determine how long it takes on average for a potential customer who’s just “browsing” to convert into a paying customer. Average customer visit duration will also help you identify whether your in-store staff are following training by taking sufficient time to help customers and drive sales. You will also have a far more accurate understanding of your optimal staff-to-customer ratio, so you can make the right staffing decisions for the best possible conversion rate and sales revenue.

Bounce rate

The bounce rate of a retail outlet measures how many people walk out of the store without buying anything. This metric can help you identify any issues that would otherwise slip under the radar with only a basic people counter. For example, a high bounce rate in one store compared to  others might indicate a lack of well-trained staff, poor store layout or a misleading storefront display—all of which can only be addressed once you know the problem exists in the first place.

If you would like to unlock a new world of insight into the performance of your retail stores, then you should consider Blix’s state-of-the-art people counter. With ROI-focused metrics and reports, you will gain unprecedented insight into customer behaviour, sales and marketing effectiveness and store operations. Download our free whitepaper, Go Beyond the Door.

.Download our retail white paper - Go Beyond the Door

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