It is not always that when you visit a retail store you end up buying from the same store. You may actually visit multiple stores looking for a particular product before you ultimately settle down buying the product in one particular store.
Every time you visit a particular store you are a potential customer or opportunity to the store owner but, after spending some time, once you leave the store without making any purchase you are a lost opportunity for the store; they have not been able to convert a potential customer into customer. For a retail store to succeed it is very essential that this conversion is high.
Customer Conversion Ratio is the ratio of total number of customers who visit the store and the number of customers who end up purchasing at the store.
It is one of the most important metric for any retailer and it play a vital role in determining the total sales. The new age formulae for calculating sales is:
Sales = Customer Traffic * Customer Conversion Ratio * Average Sales Value
Retailers can analyse load of transaction data from their purchasing customers, but they have no clue about the non-purchasers; the ones who just came in and went out. A retailer's ability to convert a few of these non-purchasers will have an impact on the overall sales figure.
BI ensures that retailers get the maximum benefit out of the Customer Conversion data.
BI can provide retailers with automated Store Performance reports and dashboards which contain a detailed breakup of all the factors which translate visiting customers into actual sales, enabling quick adoption of effective strategies.
BI can provide retailers with automated Store Performance reports and dashboards which contain a detailed breakup of all the factors which translate visiting customers into actual sales, enabling quick adoption of effective strategies.
BI can also provide Floor Plan heat maps which can highlight the hot and cold spots based upon Traffic and Conversion Ratio. From such visual representation Store Managers can understand why traffic is not getting converted into actual purchase. Accordingly they can device strategies and align sales executives to maximise conversion.