Friday, July 06, 2007

What's Your Conversion?

What's your current conversion? That is, what percentage of people who enter your store actually make a purchase?

If you don't track this critical measurement, I guarantee that you are likely underestimating how many people visit your store in a day/week/month, overestimating your conversion, and missing valuable sales opportunities.

When I worked with one retailer, the staff consistently complained that customer traffic was slow in the early part of the week. After installing traffic counters, the managers realized that it was not nearly as low as they expected.

Before installing the counters they believed their conversion ratio was approximately 20%. However, the data showed their actual conversion was just over 10% which demonstrated a HUGE opportunity to improve their sales.

If you own, or work in, a small store, you may think the investment of traffic counters is an expense you can't afford. My perspective is that you cannot afford NOT to track the numberof people who flow into your store.

Proper analyzing can help you optimize your scheduling--including when your key people should be working. And this can actually save you money by helping you increase your sales during peak times in your store.


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