Recent media reports about foot traffic and location tracking have stirred up interest from our customers around what type of metrics dealers can produce from their RQ data. Are traffic counters a good idea? What are the key metrics we see our dealers incorporating into their reports when it comes to traffic counting?
A basic conversion rate is calculated by taking the number of invoices over your traffic in the range. It works like this: The number of invoices is the count of unique net transactions and the traffic is how many customers came into the store. At a minimum, we want to know how many customers we converted into sales. A conversion rate gives us insight into this.
Viewing the Store Conversion Rate – By Day, By Week, or By Month?
Daily View: Pointing Out Outliers
Viewing your weekly traffic, broken down by day, will help quickly identify if you were exceptionally busy one day during the week. This can be helpful if you know that you are never busy on Fridays. Who knows, maybe Fridays are picking up overall?
Aggregate: A More Accurate Daily/Weekly View
It may not be a good idea to judge Fridays by a particular Friday or a single week’s traffic in isolation. When you are evaluating a store’s traffic and see patterns fluctuating significantly, an aggregate view of the day or week will help rule out spikes and provide more accurate insight into what may be going on.
Viewing conversion rates by hour should help you understand when staff are taking breaks -- or when additional coverage may be needed. Once you have pinpointed a dip in conversion, take a look at your punched and scheduled hours and see if it makes sense to restrict breaks during peak high traffic times or maybe call an extra salesperson in. Conversely, if my schedule is consistently higher than my traffic, maybe I can cut back on hours. Taking a look at traffic alongside scheduling will help pinpoint if you have the staff to cover the customers coming in.
What Didn’t Happen?
Just as important as close rate is evaluating “what didn’t happen.” Once you wrap your head around conversion rates, take a look at customers you are leaving on the table. The difference between your traffic and your customers (invoices) is the group of customers who did not purchase anything.
If traffic is 100 and invoices are 40, then 60 Customers did not buy.
If our average GP/Customer is X.
Then converting X * 60 into happy customers should result in Y, additional sales for our company
To take it a step further: If you are managing location revenue goals, reverse the equation and use existing conversion rate to determine how many additional customers are needed to hit your goal.
e.g. Judging by the current traffic volume, I will need to sell this much more to each remaining customer to make my target.
An Expanded View of Conversion
Apart from basic conversion, what are the purchasing customers buying? How successful are the locations in converting traffic into new contracts? Into upgrades? What about into activations or accessories?
A Successful Initiative through Automation and Increased Reach
A new RQ feature launching this summer will automate the manual process of importing the door count, thus eliminating the need to manually Import the count. We have clearly summarized the key concepts and data required to successfully manage traffic conversion in an easy-to-use intuitive Store Level Dashboard.
To increase conversion rates means turning non-buying customers into loyal paying customers and making sure you have adequate staff available during peak times. Add in interactive in-store tools like XQ Interactive Retail to help keep customers engaged and IN THE STORE learning about your products, and you will be on your way to turning the walkouts into happy customers.