A small increase in sales conversion leads to a significant increase in sales, even when no other factors are changed.
- Suppose your store had 200 visitors a day. Of these 200 only 20 actually buy something. Your sales conversion is 20/200: 10%.
- Suppose also that the average spend of these 20 shoppers was £30. Total take for a day would then be £600.
If you could increase your conversion by just 1 percentage point, to 11%, how would the figures look then?
- 22 people would buy each day (11% x 200 = 22)
- They would spend 22 x £30 = £660
- Increase in sales is £60/£600 = 10%
In our example, with all other things remaining equal, an increase in sales conversion of 1 percentage point gives a 10% increase in sales.
Sales conversion is one of the most useful metrics available. It is easily measured simply by connecting the people counts to the point-of-sale system.
Some stores even track their conversion rates in real-time, so dips can be immediately flagged up and dealt with.
Three Ways to Increase Conversion Rate
- Increase Average Shopping Time
- Increase staff interaction with shoppers
- Improve signage in the store
The effectiveness of all of these can be measured. Small improvements lead to big financial gains.
Is a 1% increase in sales conversion realistic? It’s actually a very low figure. We recently helped a European retail chain improve sales conversion by 25% in just three months.