One of the latest hot button topics for many retail businesses is conversion rate. Conversion rates are found using data from a retail traffic counter system like VisiPlus.
A conversion rate is the ratio between customer traffic (the number of people entering your store) and the number of transactions made during that same time frame.
The conversion rate is the next drill down of your store’s sales. It shows more than just whether or not you made the days sales. It lets you know how the customer traffic is actually purchasing, or not. This is one of the most beneficial reasons to using retail traffic counter systems like VisiPlus.
By looking at a conversion rate, you will be able to see several different patterns to your daily business. You can see from your retail traffic counter system if you have a high traffic count, but not many of them are buying, or they are making smaller dollar purchases. When this is the case, you want to focus your sales efforts on how to grow the individual sales.
Can you remerchandise to have small add on items near the register to increase your sales? Do you have a problem with your employees? When your staff is not engaging the customer, you risk losing sales because no one is there to help them.
Have you started locking up merchandise to prevent theft? Maybe investing in a Checkpoint system can help boost your sales while preventing shoplifting. Checkpoint systems allow for open merchandising, a proven sales booster, compared to putting high theft popular products behind a lock and key.
If you have a low traffic count and big sales, you have an opportunity to grow your business by marketing to bring more customers in. Focus on sales initiatives to drive customers into your store. An increase in traffic from your VisiPlus reports will easily show you if your marketing is working. Take a look at how safe your store is, you could be driving traffic away for things like parking lot lights not working, or too much evidence of theft. Again, a Checkpoint System will help remedy this situation.