Retail Traffic Counter Analytics; Customer Traffic vs. Conversion Rates
It is understandable for business owners to become frustrated with their retail traffic counting system or for people who have not yet installed a traffic counting system to be skeptical. This can be for two reasons; Because they are not able to access the information of their conversion rates or they are incapable of analyzing the change in the data they have collected.
If you are either of the two, it is important that we remember that data for conversion rate and customer traffic gained are correlated and both helpful, but they are not the same. Furthermore, while people counting systems can equip you with much needed intelligence regarding your business it will not provide the exact detail of your store’s conversion rate unless the retail traffic counting system you are using does this for you.
But What is the Difference in Customer Traffic & Sales Conversion Rates?
Simply put, customer traffic is the number of people who entered your store, while sales conversion is calculated by the number of people who made a purchase versus the number of people that visited the store.
To calculate the store’s conversion rate with the help of a retail traffic counting system, you have to use it in conjunction with your POS (point of sale system). While POS will provide you information about the number of people who made a purchase and your actual sale, the people counting system will give you the exact number of people who exited your store without making a purchase and help you analyze your store’s inventory and business schemes, and in the long run help you convert your visitors. By calculating your conversion rate, you will gain an insight into other factors.
For example, high customer traffic means your store is actually attracting a lot of people, but a low or unstable conversion rate means you are doing a poor job at optimizing sales opportunities.
Your conversion rate will improve when you use a people counting system. The customer traffic data you will get from your people counting system can be used to analyze customer behaviors, seasonal traffic patterns, and impact of promotions and effect of events to your site visitors that positively or negatively affect your store’s sales. By using a people counting system, you will have pertinent information on which periods your store have the most visitors and which time or day have the least.
You will also be able to determine any change in traffic after revising staff schedules, hours of operation, stock availability, and pricing. With the help of this data you will be able to assess whether your customers became satisfied or dissatisfied with the changes you made, thus help you make changes that will inspire better conversion. Implementing strategies to help improve conversion rate during the busiest time of the store can have a large impact on bottom line figures.
Although it is true that there are other factors to consider when it comes to making a sale, like whether your visitor is in there to window shop, browse or try items on and buy them on their next visit. By improving your marketing and customer service, you will get a higher chance of customers returning to buy your products or services, or buying them on their first visit.