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Retailers who focus mainly on increasing customer counts and average ticket sizes are missing a key metric: conversion rate.
Conversion rate is the ratio of people who enter a store compared to how many actually make a purchase. Only 35 percent of retailers track conversion rates, according to Retail Customer Experience. If you’re among the majority, consider buying a traffic tracking system that monitors the number of customers who enter your store. Keep in mind that understanding the data could help you grow sales volume.
For those of you who already monitor traffic counts as they relate to transactions made, here are five tips from Retail Customer Experience for how to improve your conversion rate:
1. Learn why people don’t buy. Figuring out why people walk in your store but leave without spending money reveals areas where you need to make changes to improve your operations. For example, you might find that customers leave if they see long lines or notice messy merchandising.
2. Be sure employees are available to help customers at peak times. Many customers may stop by during their lunch hours, but if one-third of your employees are on their lunch breaks, conversion rates will be low.
3. Look for conversion leaks and plug the holes: Look at traffic patterns to guarantee that customers can get help from an associate and the lines move quickly during peak times.
4. Set a conversion rate target for each day.
5. Get feedback from your staff on why customers leave the store empty-handed.
To read more about improving conversion rates, click here.
