Retail Analytics

Uncover your store’s revenue generation per square meter with the Blix Retail Conversion Calculator

Written by Tony Loxton
Apr 20

Quantifying Return on Investment (ROI) is a core business practice for organisations in any industry. And for businesses who operate brick-and-mortar stores, your physical premises represents one of your biggest investments. As such, smart retail owners should be doing all they can to quantify revenue generation relative to the amount of floor space they own—not just to get a better idea of how profitable their efforts are, but to identify top performing stores and uncover opportunities for improving underperforming ones.

When it comes to optimising ROI for your retail business, the most valuable metric to use is revenue generation per square metre, as it helps compare rental costs directly with the amount of revenue you’re pulling in. In this blog, we’ll look at some tips for optimising revenue generation per square metre, and introduce you to the Blix Retail Conversion Calculator.

6 Tips for optimising revenue generation per square metre

For the most part, optimising revenue generation in your store isn’t rocket science. All you need is a keen eye, some common sense, and an understanding of your own business. Pay attention to how traffic flows through your store—are any items or displays getting in your customers’ way? Are your top sellers displayed where they can be seen easily?

Put yourself in your customer’s shoes

The best way to experience your store as a customer is to be a customer yourself. Walk through your store and take note of any obstructions, poor signage or any other factors that might discourage you from making a purchase. Encourage floor staff to do the same and collate the feedback into a single document.

Don’t waste floor space on poor sellers

An empty shop floor isn’t something any customer wants to walk into, but neither is a store full of products you wouldn’t touch with a ten-foot pole. Constantly evaluate your floor layout against sales figures—there’s no use dedicating a display for items that aren’t selling when you could be using the space to shift more  focus on your most valuable product. If your brand operates across several locations, this may vary from one store to another, so make sure you understand which products sell and which don’t at each of your stores.

Be meticulous about generating reports

Create reports at set intervals - whether they’re weekly, monthly or quarterly doesn’t matter. This will help determine when and what customers are buying from you, which will help you to drill down into your most valuable products and peak performance times, and adjust accordingly.

Experiment with offers and discounts

There are many options for providing discounts and offers to your customers, and some may be far more effective than others. Experiment with some different types of discounts (without cutting too much into your margins), or try providing specialised offers to your most loyal or newest customers to see what works best.

Be passionate about creating an in-store experience

An increasing number of retailers are realising the benefit of improving their in-store experience. With the right combination of store layout and staff, it’s possible to have a quantifiable impact on customer satisfaction as well as sales. Consider offering upskilling programmes for your teams, or implementing an incentive system that rewards top-performing sales staff.

Use retail analytics software to make sense of foot traffic

The most valuable asset for retail stores looking to increase revenue generation is a retail analytics system. With leading analytics platforms like Blix Traffic, it’s possible to get an in-depth look into the way your customers engage with your store, both within it and outside it. With real-time stats for dwell times, customers that leave within five minutes without transacting, the percentage of customers who return to your store, and more, you’ll have unlimited insight into the way your store works.

The Blix Retail Conversion Calculator makes it easy to work out conversion rates

To make it easy for you to get a rough estimate of the revenue generated by your store, we created a Conversion Rate Calculator that takes key data into account and gives you an estimate of your total revenue per square metre. In essence, the Conversion Rate Calculator takes your total average in-store sales and divides them by the selling area in square metres. However, we’ve gone above and beyond this simple calculation to give you a more accurate result that takes into account your total marketing budget, your average transactions per month, and more.

If you want to increase revenue generation in your retail store, try out our Conversion Rate Calculator for free, or get in touch with us directly to ask a question about our in store analytics solutions.

Calculate now

You might be interested in these