Subscribe

Your email:

Follow ShopperTrak

ShopperTrak Blog

Current Articles | RSS Feed RSS Feed

At The End Of The Day, It's All About Conversion

  
  
  

shirts resized 600Retailers are entering a new era of data and insight around the activities that happen in and around their stores. From the most essential data sets like traffic and transactions, to more specific insights such as dwell times and shopper paths through stores, there is a seemingly endless supply of information that retailers can now access. Yet, in all the discussion around Big Data, video analytics, smartphone tracking and other new technologies, one critical fact is being eclipsed by the hype: at the end of the day, it's all about conversion.

The fact that this has been obscured isn't necessarily surprising; after all, any time a new technology or technique is introduced, there is often a period of excitement where the unbounded possibilities of what can be done often eclipse a more carefully curated list of what should be done with the technology. 

Wisdom From Experience

ShopperTrak is in a unique position of understanding these new technologies in that our business has been all about helping our clients optimize for conversion since day one. After all, shopper conversion rate is one of the key metrics that traffic counts deliver for retailers.

More importantly, however, every new retail metric or data set introduced by a new technology can also effectively be measured by how it correlates to a store's overall conversion rate. Does knowing speed of service at the cash registers matter? It does if it has an impact on the conversion rate. Will understanding dwell time at a display have an impact on your business? You won't know unless you can connect information about dwell time with information about conversion. How about a Big Data system that shows the connection between weather and store traffic? That data is irrelevant if you can't place it in context to a noticeable delta in conversion.

Building From A Foundation Of Conversion

ShopperTrak's new Interior Analytics capabilities have all been designed to be grounded in shopper conversion. This helps our clients optimize the decisions they make based off these new data streams to deliver maximum impact on store conversion rates. Better yet, the store conversion rates connected to each new metric are calculated off our highly accurate and proactively validated Managed Service which captures perimeter traffic counts at store entrances.

Where To Begin With New Metrics

There are many new technologies and techniques that can give retailers previously unavailable insights into what happens within their stores. But if those insights can't be understood in terms of their impact on the conversion rate of browsers to buyers, then they are not serving the most fundamental need of the retailer - boosting sales and profits. ShopperTrak's powerful retail insights have always been and will continue to be based on a highly accurate understanding of store conversion rates to ensure that our clients can make the most of the insights we deliver to them from each of their locations.

Comments

I agree that at the end of the day analysis is about growing the bottom line. It is also important to use the right metric in measuring bottom line impact. Depending on the industry, the most informative metric may change.  
 
When shopping for food, most people who enter the store are motivated to make a purchase (probably many purchases). In grocery stores, a more relevant metric might be how mobile ads affect the number of items in the market basket or what happens to total dollar sales per shopper. Measurement services are likely to evolve to address the opportunities presented by new advertising methods.
Posted @ Wednesday, April 03, 2013 4:11 PM by rick haffner
Back to Basics. All the terminology, Analysis Conversion and so on can be used, studied and utilized to discover methods to increase customer traffic, sales and profit, however...one need read the retail bible albiet written years ago "Minding the Store" by Stanley Marcus. It's so simple..just that..as a Retail Analyst...minding the store..as an executive but as a customer..what does the store convey..the customer makes the decision in less than 15 seconds whether to enter the store or not (simply the time it takes to walk past) is it inviting? visual displays? Well lit? Floods or Spots..better pin-dot..positioned on displays or the floor..merchandise adjacent? well represented? What does the overall image speak? Inviting? Statement? Presentation? Fixture placement? Easy to walk through..does it entice the customer to walk through the store, encourage suggestive sales, current, fresh product, size category strength, on the edge, different, energized staff, attention to detail and customer service? Clean fitting rooms? Timely rotating of stock? Managers that manage the merchandise and communicate sell through/lack of sell through with appropriate merchandise/corporate. 
thank-you letters. Amazing, however in my career I would estimate 60% fail these basic venues. However are ever to eager to slash prices. Neiman true to form holds sales twice a year. Absentee management even if there is a manager. Sales associates are key as without sales suffer..again each shift requires awareness of new goods. If all these basics were followed...as once were..the pencil pushers should be in the stores more and in the offices less..they would gain knowledge..regarding the "true" customer..age, size and insight into "what excites and ignigts their pocketbooks. What ever happened to shopping the competition?
Posted @ Thursday, April 04, 2013 1:13 PM by Melissa Buechel
Comments have been closed for this article.