Retail Traffic Counting Systems – How Do They Work?

Having the ability to measure the exact number of people crossing the threshold of your store is a big help when monitoring the effect of in-store changes and determining what improvements you can implement to ensure a quality customer experience and professional customer service.

Due to high demand, exceptional top-of-the-line customer relationship management tools were created to help business owners virtually monitor their customers and determine which product or service is making them tick.

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What Data Can a Retail Traffic Counting System Collect & Analyze?

As retail owners and operators know, retail stores are currently making use of customer traffic information to check the distribution of traffic by hour, day of the week, seasonal and promotional periods, shop location and more. They may also check the conversion ratio of their shop by adding up all the sales transactions within a specified time and divide it by the total traffic within the same period.

A traffic counting system can also help retail stores determine traffic based on advertising or current promotions and help them establish if there is an increase, decrease on sales or if it remained the same during the promotional period. Furthermore, a people counting system can help retail store managers and owners determine how to allocate their employees and what staffing scheme is best for their store.

How Does A Retail Traffic Counter Function?

Infrared technology is a very popular technology used by traffic and people counting companies in the market today. With the infrared system the device will count all people going both in and out of your location or store. If you have a sales person, delivery person or another employee that comes into your business they will be counted as an opportunity in the system. If a family of 5 comes each and every person in that group will be counted (10 total counts – entering and leaving) instead of 1 customer opportunity. For these reasons infrared technology will not provide your business an accurate opportunity count. The old saying holds true when it comes to this data; Garbage In/Garbage Out.

The 2nd most commonly used technology is smartphone tracking. A recent consumer survey by the Federal Trade Commission indicated that a majority of people do not want to be tracked via their smartphone devices. The data that was obtained found that “8 out of 10 shoppers do not want stores to track their movements via smartphone” and “nearly half (43%) of shoppers are less likely to shop at a favorite retailer if the brand implements a smart phone tracking program.” To go along with that only about 2/3s of adults in America about 68% actually have a smartphone. In essence there are two results from using this kind of traffic counting system; you will drive away clients or you will get inaccurate counts. Neither of these options are positive for a retail owner and operator.

At approximately the same or lower market price, TraxSales system avoids these traffic counter downfalls. The Visual Proof 2 Traffic Counting System provides accuracy by ONLY counting clients that are coming into the store, giving you photos of the people entering so you can remove any person that is not a client, and counts groups as only 1. This is the preferred method, but if you want a percentage taken out automatically so humans never have to touch the system this can be implemented as well

As you already know by your use of traffic counters or your decisions to implement a traffic counting system in your business obtaining data in order to monitor your business is important. But if that data you are collecting is not accurate then you might be making business and marketing decisions that could be a detriment to your sales revenue stream.

In any case, sensors used can be installed horizontally at the entrance of the shop or on the ceiling, above the store visitors’ path. Count reports can be generated with the help of the system which is then sent to a database. Based on the type of system used, counts can be broken down into different time increments. Some systems also support generated reports by time period, store location, different entrances, and segmentation grouping.

Profits

Earnings and repeat customers are the factors that keep your business afloat. By making use of a retail traffic counting system, you will be able to analyze your business and make improvements at the same time since you will then be able to gauge the present conversion rates and keep abreast of future conversion as you make changes and improvements. By employing a people counting system, you can also find out if you are understaffed during peak hours or overstaffed during slow shifts.

By using a retail traffic counting system, you can determine which advertising effort brings in traffic and conversion and which ones are not of any help. Moreover, integrating traffic information with sales and transaction data can help you evaluate different areas of your business like marketing, advertising and promotions, staffing and customer service to be more systematic, enterprising and productive.

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