To convert this decimal to a whole number, multiply it by 100. Therefore, traffic counts can be used (in conjunction with sales history generated from your point of sale software) to determine your conversion rate. Seems like things improved in week 2, right? If you’re a clothing retailer, that means placing the new season’s items close to the entryway while last season’s or clearance items are located towards the back. What Factors Impact Your Store’s Retail Conversion Rate? Numbers answer nearly all your questions. For some store managers, retail conversion rates may seem redundant, as they’re accustomed to looking at the number of sales to gauge their success. Your conversion rate dropped by more than one-third. Conversion Rate = Number of Sales / Total Number of Visitors x 100 So, if 32 people made a purchase out of the 200 people who were in your store, you would have a conversion rate of: 32 / 200 x 100 = 16% – meaning it is time to take measures to increase the conversion rate. To convert this decimal to a whole number, multiply it by 100. Most major retailers already do this, but the idea works for smaller shops, as well. If you had maintained that 12.5 percent conversion rate, even at the lower $40 average transaction value you had in week 1, you would have pulled in $10,000. Let’s say your store had 50 transactions occur in one day. High-cost goods and services like travel and home furnishings have lower conversion rates. If potential buyers are greeted by a friendly and knowledgeable member of your team who goes above and beyond to meet their needs, they’re more likely to make a purchase and become a repeat customer. The very first thing you’ll want to look at is how your store is set up. Focusing on driving foot traffic into your store and increasing the number of transactions based purely on more bodies is one simple strategy you can employ to boost sales, but more bodies won’t necessarily equate to more money. Then, take the number of sales made and divide it by the number of customers who visited your store during your designated period, which will give you a decimal. Related: 40 Ideas to Boost Retail Foot Traffic and Increase Sales. In other words, it indicates the number of people out of all potential shoppers who buy something from your store – and it is this act of purchasing which “converts” them into customers. That’s because it’s easy to calculate your transaction data. conversion rate calculator conversion rate formula website conversion ... conversion rate in retail a conversion cost per conversion formula how to increase conversion rate in retail See sales conversion per hour, per day, per week, per month, etc. The conversion rate is the ratio of the sales lead to the customers. Conversion rate = (conversions / total visitors) * 100% And the data you receive will be invaluable to your business. Here's how your store can benefit from using it.... Dor team is getting ready for New York’s NRF 2020 Retail’s Big Show on Jan 11-14! How to calculate conversion rates using a people counting system? At the time of this revision, 1 Euro is worth 1.09 US dollar. When you have reliable data and numbers to back it up, you can begin digging into these questions, and many more. Well, it seemed busier this week, and our sales were up, so we must be doing something right. First, we need to know your store traffic so we can calculate your conversion rate. Below is the conversion rate formula written out: retail conversion rate = (number of sales / number of customers) x 100. There are a number of people counting solutions on the market – ranging from bluetooth door counters to expensive video camera devices – but to save yourself both time and energy, it’s best to opt for one that readily integrates with your POS systems to display the conversion rate. The art of keeping inventory involves a delicate balance. Sales conver-sion rates, like the weather, are constantly changing. With this KPI you can see how many visitors actually turn into buyers. Implement effective marketing and operations strategies based on best practices for your niche. That means the approximate EUR/CAD spot rate … We’ll explain why in the next couple sections. Example: An ecommerce site is visited by 100,000 people during the month of April. Newer solutions like Dor’s battery-operated thermal people counter come equipped with user-friendly software that enables you to view and compare conversion rates from previous days, weeks or months or even contrast conversion rates across several stores, all on a single dashboard screen. Do you need to order more stock? It may take trial and error to hit the perfect note in customer service, but you can start by ensuring that all employees are actively assisting buyers without being overbearing. want to ask your sales associates questions, How to Use People Counters for Fitness Center Success, Using People Counters to Measure Jewelry Store Traffic, How to Prepare for Holiday Shoppers During COVID-19. It’s tempting to make all your business decisions based simply on transaction metrics. Pittsburgh, PA 15275, Phone: 1-888-815-6568 As a retail shop owner, the worst thing that you can imagine is this scenario — a customer walks into your store, takes one look around and immediately walks out. The process of sales from initial stage to final stage is described in sales funnel. When you’re ready to take more control of your business metrics, contact Traf-Sys today to find out how we can help you measure traffic coming into your retail establishment. Sales per square foot is another important KPI retail. Whichever option you choose, having the right systems in place will help you get an idea of how these efforts affect your conversion rates so you can take action and watch your business grow. But this scenario is avoidable. factors will influence your ability to convert. How to calculate eCommerce conversion rates. Once you begin tracking your retail conversion rate, you can start to answer some questions based on your store traffic and revenue, which will give you new insight into your business that will help you make staffing and inventory decisions. A people counting system is meant to supplement your point of … Other similar ideas involve dispersing cash registers throughout the store or removing checkout lines from the ground floor altogether. Again, without measuring data such as this, your business decisions are basically based on guesswork. It’s pretty simple when you have accurate foot traffic and sales numbers. This step-by-step guide will get you started. A newer and more tech-forward solution is to offer mobile POS systems, which allow customers to pay on mobile devices or sometimes even via their smartphones. Still, regardless of the type of store in question, conventional wisdom dictates that a conversion rate of 15 percent or lower is bad for business and must be addressed. Email: sales@trafsys.com. One of the easiest ways to draw in more customers is to position your most eye-catching inventory near the front of the store. Retail conversion rates by device. That’s a lead that didn’t convert — a sale that wasn’t made. The archetypical example of conversion rate is the percentage of website visitors who buy something on the site. Is there a time of the day when the conversion rate is lowest? Related: 15 Social Media Marketing Tips for Retailers to Increase Sales. Is there a time of the day when the conversion rate is highest? Once considered cutting-edge, these mobile payment technologies are rapidly becoming standard practice at major retailers with large stores. If you only had 50 visitors that day, you actually had a 100% conversion rate, making it a hugely successful day for your business. To calculate the conversion rate for a specific day, you simply have to take the number of transactions made during that day and divide it by the number of potential customers who walked into your store. Although most accounting programs do the math for you, as a business owner or accountant you should know the most common retail math formulas that are used to track merchandise, measure sales performance, determine profitability, and help create pricing … Website conversion rates have quite a bit of variance depending on the industry and business model. With online shopping becoming ever-present in recent years, these figures should come as no surprise. Outside of USA: 412-428-0098 Was a recent promotion or campaign successful? People counting offers you a smarter way to run your enterprise retail business. Continue tracking your conversion rates as you make changes so you can know what’s working and what isn’t. Should you change your store layout, or is a new layout working effectively? Is there a day of the week where rates are highest? No matter what type of store you manage, knowing the retail conversion rate can mean the difference between using numbers to grow your business and doing it all by chance. Regardless of what you sell, the window display is your first chance to grab potential buyers’ attention, so use it wisely. Inaccurate store traffic numbers will skew conversion results, so it’s critical to have an accurate people counting system. This approach also has the benefit of giving your staff an excuse to engage with buyers and ask if they need assistance. This large range suggests you need to pin down the Facebook-specific conversion rate for your industry before you talk about how good or bad your conversion rate is. If your store has a high walk-in rate but a low conversion rate, you should track and analyze other retail metrics and KPIs to find out why so few people buy things at your store. Calculating conversion To calculate conversion rate, simply take your sales transaction counts from your POS system and divide them by the traffic counts you get from your traffic data capture system, and you’ve got it — conversion rate. For example, high footfall will mean the store is attracting plenty of customers but a low conversion rate – or one that is erratic – will indicate that it is not doing a good job of maximizing sales opportunities. Pretty easy, right? Do you need more or fewer staff? Retail conversion measures the proportion of visitors to a retail outlet who make a purchase. If you find that your store’s conversion rates are stagnant, a good marketing campaign might be just what you need to drum up some new business. Our thermal imaging people counting systems are up to 98 percent accurate, so you know you’re getting the right numbers to calculate your conversion rate — and all other foot traffic metrics — every time. If you’re making sales, and you can track how many sales you make and your average transaction value, many business owners will call that a day and think of that data as “good enough.”. Our people counting systems are highly accurate and provide a range of benefits for your business. One vital question you should be asking that can help you better understand and answer all these questions is, What is my retail conversion rate? You had 150 transactions, so your average transaction value was $40. Of those, 150 made a purchase, so your conversion rate was 12.5 percent. 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