All business owners and managers want to increase their sales and they implement different different business tactics to make it happen. Many focus on driving more traffic into their locations, increasing the total sale of each customer & selling to “be back” customers. There is one approach that many managers and owners are not using to its full potential: increasing their retail conversion rate.
One of the critical KPIs (key performance indicators) for retail businesses is the conversion rate, which is the percentage of buyers as compared to a store’s total amount of visitors. To increase your store’s retail conversion rate you have to monitor, assess and take measures to make more sales per prospective customer that enters your location. Remember, a small increase in your retail conversion rate can make a very large difference in your store’s profits.
It is easy to calculate your store’s conversion rate; you simply have to get number of sales transactions on a given period and divide that to the total number of people that came into your store on the same period. Some retail traffic counting systems will actually do this for you.
After knowing your conversion rate it is now time for you to assess your store’s performance. A store owner or manager will need to determine why other people are buying and why some are not. The reason could be because of uncontrollable factors like budget or could it be because they could not find what they were looking for in your store or they were not happy with the level of service they are getting.
To help increase your store’s retail conversion rate, there are three main factors you may want to consider:
* Customer Behavior
With the help of retail traffic counting system you can determine the shopping habits of your customers. You can easily determine what makes them tick, what items they are purchasing, and what makes clients decide to not buy. You can see trends on which items are sought out by most customers, which advertisement made the most impact and which customers are leaving feeling satisfied with their experience in your store. Knowing your customers and customer habits is of the utmost importance when implementing business strategies. It is important for you to understand why your prospective customer left without making a purchase as possibly there is something you are doing wrong then you can remedy that problem area.
* Peak and Low Periods & Adjusting Your Staffing Schedule
A retail traffic counting system not only counts the number of people entering your store, it also will show you trends on which days or hours of the day your location is receiving the most customer traffic.
Having this information is vital when it comes to optimizing your staff schedule as you need to ensure that there are enough employees during the peak hours to offer professional customer service and that you are not throwing away money by over staffing during low periods.
* Get Your Employees On-board
Improving your conversion rate is a team effort, thus it is important that you get your staff involved and and let them know how important their roles are in reaching your goal. Increased sales does not only help the business, it also helps your sales people in obtaining higher commissions. Showing the benefits of the retail traffic counting system will motivate your staff and encourage them to make a personal effort in generating more sales conversions.