Driving increasing conversion rates becomes more vital in a gloomy economic environment.
Conversion rate is such a powerful indicator, that it never ceases to astound me why retailers do not place enough effort in getting a handle on their conversion rates.
There is no excuse these days because the technology is quite straight forward, and relatively inexpensive.
Thermal sensors have replaced the old beam technology - much more accurate and less onerous from a maintenance perspective.
If a retailer is not keeping their eye on rates of conversion, that is, the proportion of people who spend money compared to the total that walk into the store, then they are not serious about growing their business.
Increasing conversion rate is possibly the most important and cost-effective thing a retailer can do to increase profit.
Most retailers don't have a clue as to what their real conversion rate actually is. We have seen small and large retailers argue about what they think the conversion rate is, and when we actually measure it, it comes as a great shock.
This is a good thing because it demonstrates the immense opportunity accurately measuring this vital KPI (Key Performance Indicator) becomes.
Retailers cannot begin to improve conversion unless they are measuring this statistic.
The very fact that conversion is measured will in itself make conversion rise - it will happen automatically.
By measuring conversion rates day to day, you'll automatically get an understanding of the effectiveness of your marketing and advertising campaigns.
Conversion rate is an indicator that prices might be too high, or sales skills are not good enough, or the product mix can be improved, or promotions are ineffective. By pulling one of the levers and monitoring conversion rate, managers will identify where to focus for improved business performance.
And measuring traffic counts in 15 minute intervals will allow you to roster your casual staff to meet customer demand. We have case studies that have proven double-digit sales growth by this change alone.
How good are your windows?
When you change them, how long does it take for you to realise that they need to be changed again because they're not working?
If retailers aren't monitoring this, they are sending shoppers to their competition.
Talk to us at Josem Consulting to find out how easy it can be to drive increased performance by effective management of conversions.
