With the usage of people counters in retail chain , retailers insight in the number of prospects that visit their stores. With the integration of sales data, retailers will have sales conversion rate. The sales conversion rate metric retailers the chance to drive sales performance by focusing on prospects that do not make a purchase.
Identifying who do not make a purchase
While most retailers commonly determine the performance of their stores with transaction value and count, they are unable to gauge their opportunity cost. With transaction count, retailers can see that their business is “good”, but they do not have a threshold to gauge what is “good”. With sales conversion rate, retailers can identify how much better their business can be and how to capitalise on the visitors that do not make a purchase.
Sales performance insights
Performance vs. Sales Opportunity
Retailers that only identify the performance of stores based on transaction value are not getting the whole story of their performance. In the example above, although the store has made a profit in Day 2 compared to Day 1, the conversion rate was significantly lower. This means that while there are more purchases on Day 2, the number of people that did not buy were also significantly higher. Were the retailer able to maintain the conversion rate from Day 1, they would have been able to make a significantly higher profit.
Sales Conversion Report