By Ifti Ifhar – ComQi
Boosting sales conversion rates is a prime goal of any bricks and mortar retailer, and a big part of making that happen is collecting, measuring and then analyzing data so decision-makers can understand what’s really happening in their stores.
Sales conversion rate is an empiric calculation of the number of purchasing transactions (regardless of the dollar amount purchased) divided by the number of visitors in the store during a given period. Retailers are looking to convert more and more visitors to purchasers. So, the higher this ratio is, the higher the profits for the retailer.
Conversion rates for online sales are relatively easy to monitor and calculate, because everything is tracked and logged through a retailer’s e-commerce platform.
It’s much harder for conventional retailers, but not impossible. The retailer needs to collect and measure in-store traffic, including:
- How many people entered the store;
- How many people were in the store at any given time;
- How many people made purchases.
Sensor technologies are powerful tools for counting and tracking store foot traffic, but they’ve not, historically, seen wide use. That’s changing – owing at least in part to new levels of sophistication in what these sensors can do and what they deliver in terms of insights.
Some retailers are implementing video analytics platforms on the store floors that can monitor the number of visitors (and other data sets like gender, age range, in-store flow and bottle necks/long lines for marketing and operational optimization).
These video analytics platforms are typically using cameras or other kinds of optical sensors, coupled with artificial intelligence software, to show patterns and charting of what happens in store. That can be highly visual graphics, or very granular data.
When store managers have these insights – legacy or real-time – they can fine-tune everything from store layouts to what gets messaged and where on the sales floor. That latter part is where tools like in-store digital display – coupled with smart content management software – can really drive results.
If your store insights tell you the profile of average shoppers changes noticeably during certain time periods, the promotional messaging and product focus can reflect that. Putting the rights messages in front of the right people at the right times will drive results.
Retailers are always very reluctant to share results, but from the limited reports I could obtain, sales conversion rates in brick-and-mortar stores vary between 15%-30%
Why does this particularly matter for bricks and mortar retail? Because conversion rates are crucial to success. Online, about 3 percent of site visitors get converted to buyers. In physical stores, conversion rates average about 22.5 percent.
That’s 7.5X more!
If you are a retailer, looking for new ways to drive the bottom line, take a hard look at a pair of tactics:
- Deploy technologies in-stores that will measure the number of visitors. Cameras (Video/image analytics) and other optic sensors are your best bet.
- Improve the in-store customer engagement and shopper experience through digital signage and interactive kiosks.
As the sales conversion rates are higher in physical stores and most of the store’s costs are fixed (lease, staff etc) we see more and more retailers investing in in-store technology such as digital signage, interactive kiosks, video analytics etc. Investments that increase sales, ROI and have a huge impact on sales conversion rates and overall customer experience.
- Mvix digital signage boosts employee communication at Virginia Rehab Hospital - November 8, 2018
- The Beatles and Stern Pinball announce the first and only Beatles pinball machine ever made! - November 7, 2018
- The workplace of the future - November 7, 2018
- Video Walls Expand Vigilance in Control Centers - November 6, 2018
- Volkswagen, Mobileye and Champion Motors to invest in Israel and deploy first autonomous EV ride-hailing service - November 6, 2018
- Infovista launches 5G NR network planning and testing solutions - November 6, 2018
- Moen creates shower of the future with Elo - November 6, 2018
- Navori integrates with NEC Display Solutions for retail data analytics - November 6, 2018
- 8K displays… So what’s the buzz? - November 6, 2018
- Meridian Kiosks announces launch of newly redesigned website - November 2, 2018