Posted on March 19, 2019
This is the first part of a 4 part series that covers the most relevant KPIs brick-and-mortar retailers can monitor through Prodco’s Traffic Counting Solutions. In this first article, we cover the first 3 essential metrics that retailers can leverage and that can help measure and drive performance: Door Counts, Passer-by Traffic and Capture Rate.
1. Door Counts
That’s the first feature any retailer will be looking for when thinking about the implementation of a People Counting Solution. It’s also the essential feature that our modern 3D stereoscopic camera can provide. Placed at the main entrance, the camera will accurately count people entering your store.
In order to provide comprehensive reports along with the most rigorous data possible, most 3D cameras will exclude children, carts, strollers, and some 3D cameras can also exclude staff, security guards and greeters.
Understand your traffic and know what to expect.
Retailers can take advantage of this data to gain insight into traffic trends and learn when the store will be busy to help make employee scheduling more effective. Increase conversion and sales by providing the best service levels possible, at the right time.
This metric also offers executives the possibility to identify the top and underperforming stores of the retail chain, based on opportunities that enter each store and measure performance such as conversion ratios.
Moreover, brick-and-mortar retailers can exploit this information to benchmark their stores against segment specific industry traffic trends (Prodco’s proprietary Retail Traffic Index).
2. Passer-By Traffic
In addition to capturing traffic coming into the stores, some 3D stereoscopic cameras are capable of measuring passer-by traffic, using integrated Wi-Fi based technology.
This data is very useful to measure the number of customer opportunities that pass directly in front of the store. In other words, passer-by traffic shows exactly what the store could be missing out on.
Another very important purpose of this data is its ability to measure location specific traffic trends.
A decrease (or increase) in traffic can be identified as being directly linked to your location. Perhaps the shopping mall where your store is located has attracted less traffic lately. Your street might be suffering from a sudden decline in popularity. Or maybe people are simply avoiding this particular street because of endless roadworks. As usual, measuring the right data and putting that into perspective is essential to grasp the full picture.
3. Capture Rate
Capture rate, or the percentage of passersby traffic that enters the store, and one of the biggest factors are a store’s windows and their displays.
It is more than fundamental to understand the true impact of the storefront and to ascertain how well it’s converting. This KPI will also help marketers analyze the performance of their marketing campaigns. Marketing strategies can be measured and adjusted based on solid data for each store location.
A store’s windows are its most valuable piece of real estate, and effective, compelling displays can greatly affect traffic through the front door. In many cases, it’s the “first moment of truth” for a physical store.
Some inventive retailers go the extra mile to make sure people will stop to admire their display. Like every year, the famous Parisian department store, Printemps, has spared no effort to impress passersby and make them want to enter their store, as we can see in this awe-inspiring picture of Printemps’ Christmas display in Paris.
Prodco Analytics delivers a comprehensive analysis platform that highlights where opportunities for improvement exist and helps your stores reach their real performance potential. Our retail performance solution delivers a deeper understanding of shopper behavior with real-time analytics at all levels of the operations and marketing team.
Stay tuned for part 2.