Study: How to boost store conversion and traffic

Retailers are always asking how they can increase the numbers of shoppers who visit and buy goods at their stores.

 

According to a study from store traffic and conversion measurement provider HeadCount, “In-store Traffic and Conversion Study: Retailers Find Keys to Impressive ROI,” the answer lies in combining data-driven coaching with analytics.

 

HeadCount conducted seven discrete experiments spanning four retail verticals and more than 600 stores to measure the effect of data-driven coaching of store managers and the application of analytics on store traffic and conversion. Managers were provided with customer data and given specific instructions on how to interpret and apply the data to their store activities. In particular, researchers focused on traffic productivity, or sales generated per traffic count.

 

Aggregate results across all seven experiments showed the test group had a net sales productivity improvement of 537 basis points compared to the control group. That is equivalent to a $0.67 sales gain on every traffic count logged.

 

Across the four individual retail verticals that were included in the study, housewares had the highest net sales productivity improvement of 772 basis points, or $.1.01 sales gain per traffic count. Following were consumer electronics (652/$0.81), interactive media (441/$0.56) and apparel (210/$0.26).

 

Researchers also tested a short-form daily traffic and conversion scorecard which laid out the previous day’s traffic and conversion trends by hour, indicating where loss was occurring. The scorecard was given to store managers every day at 9 a.m. Test managers reported this “push” reporting was much more convenient than pulling data from the Web or gaining access to it via a portal, making the scorecards much more likely to be reviewed.