6 Key performance indicators retailers should measure to boost profits
1. Footfall
Footfall—the number of people entering a store or area—is the critical kpi to measure. This rich source of information is often neglected, but is crucial to improving earnings. Without knowing footfall retailers can’t calculate sales conversion, don’t have hard figures about when the store is busiest, don’t know how long shoppers pause at their displays or how many walk past the shop without going in.
2. Sales Conversion
Sales conversion shows how many store visitors actually bought something. Footfall counts connect to the point-of-sale system for instant analysis of how many are buying. Without sales conversion figures, retailers are in the dark about how their initiatives converted browsers to buyers.
3. Average Shopping Time
The longer the average shopping time the more likely a shopper is to make a purchase. Measuring and improving average shopping time results in an increase in:
- The number of people buying something
- The number of items they buy
- The amount of money that they spend
4. Average Spend
The average amount each customer spends in one transaction at the check-out. Monitoring this means retailers can take action to raise the average spend.
5. Average Basket Size
How many items each customer purchases in one visit to the till.
Although average spend and basket size are largely independent of footfall, increasing footfall multiplies the effect of these two key performance indicators.
6. Queuing Time
Nobody likes queuing. Too long a queue annoys customers, drives them away and makes it less likely that they will return another day. Measuring queues – knowing exactly how many people are in the queue at the moment, the average queuing time, how many people leave the queue before reaching the front, when queues are longest and so on, lets retailers enhance the shopping experience and prevent queues before they form.
Contact us to find out how to use smart retail sensing to enhance business profits: increase conversion ratio, improve average transaction value and maximise number of items per transaction. Email us or telephone +44 (0)161 839 6437