Score Big When You Use A Customer Counting Device – Part 1
As retailers we count money as the measure of our success but I believe often we overlook the importance of retail traffic counting as a measure of success (or missed opportunity). I will use one of my favorite analogies to demonstrate what I mean. I attended a Coastal Carolina Football game some time ago and the announcer heralded the attendance numbers for this game based on “ticket sales”. He didn’t say ticket sales but that was what he meant. I can make this conclusion because looking around the stadium there was absolutely no way the attendance matched the numbers he was giving us. Had his numbers been actual people in the stadium the stands would have been packed and would have added energy to the home team. Unfortunately things just did not match up which I believe does not help the morale of the team. That is simply my assumption but a safe one I think since we lost the game. Now I would like you to think about this in terms of your own store. Do you focus on your “sales” dollars but fail to see how many people are walking through your doors? Do you use a customer counting device in your business? The CEO of Loss Prevention Systems, Inc. Bill Bregar has been in the business of improving sales and decreasing shortage for stores for over 30 years. As a business owner himself and a former Director of Loss Prevention for several major retailers he has learned to look at numbers from a different perspective than many of us would. He recognized that sales represent only a portion of the overall retail picture. Shortage and customer traffic are two major factors that cannot be overlooked but often are due to a lack of information.
In order to follow through on his business commitment to helping retail businesses improve sales and profits Bill wanted to help store owners see that sales numbers are not providing a complete picture of store activity. He found that Sensormatic has a customer counting device that accurately tracks the number of people entering a store. The data gathered by the systems helps store managers see a bigger picture than just point of sale information. For example, let’s say you had a great sales day for your business with $10,000 in sales and 500 transactions. For this example we will assume that no customer returns took place on this day. This means on average each customer spent $20.00 in your store if you use your transaction total as your measure for success. Now the way Bill sees it you didn’t have 500 people in your store that day despite what your transaction tally says. You focus on retail traffic counting using a Sensormatic
Customer counting device and find out you had 800 people walk through your doors. Sure, some of those were children with an adult but some of those were people who walked in and walked out without making a purchase! Good Grief, what happened that those potential customers left empty handed? Was there a missed opportunity for another $6,000 in sales or even $3,000 assuming some of those were children or couples? Do you see that you have only been looking at a small piece of a bigger picture? Bill does and wants to help you change how you look at your business. That begins with the installation of a retail traffic counting system.
Retail owners that have a Sensormatic anti-theft system in place may already be half way there since a customer counting device can be added to many existing Sensormatic towers. If you don’t have a Sensormatic system don’t fret, Loss Prevention Systems, Inc. can help you with that as well as the door counter. In part 2 we will discuss why the anti-theft system is important to your store for more than just adding a people counter. As I said earlier, Bill wants to help stores improve profits through shortage reduction and increasing sales which go hand in hand. But if you want to find out more you will have to tune in for part 2 of this series to learn how you can score a touchdown in increased sales with a retail traffic counting system.
Need information on a customer counting device? Give us a call at 1.770.426.0547 now.