Making sure those shopper numbers add up

Retailers go through a number of transformations as new technologies are introduced that enable them to enhance logistics and operational efficiencies with the goal of adding a few extra points to the bottom-line.

Many businesses have successfully incorporated ‘people counting’ as a critical tool for improving in-store conversion rates. It is treated as the most important dimension to their existing KPIs (key performance indicators) for sales, merchandising, stock control, staffing, etc.

This equation has provided retailers with the ability to measure and improve a store’s performance across the chain, taking the analysis away from pure financial data and into the relationship between customer volume and conversion rates.

This technology has emerged as a critical analysis tool for boosting conversion rates. By actually counting customers and their response, you will find that one can significantly improve individual store, and by extension chain-wide, performance.

The process of converting ‘shoppers’ into ‘buyers’ is practically the definition of a “retail basic’. For a store owner, measuring their sales conversion rates is dependent on access to accurate and consistent people counting data. It also enables them to take corrective actions in real-time to enhance operations.

The key features also include mapping how customers currently shop your store, and knowing the high- and low-traffic areas within the store to generate maximum impact.

Diagnosing and remedying these are critical to maintaining solid conversion rates. People counting data that charts peak times of a day and days of the week — as well as year-over-year historical data that records the impact of holidays and special events — provides retailers with invaluable insights.

With this information, retailers can maximise conversions while still keeping a tight rein on labour costs. Keeping close tabs on this vital sign is imperative to the health of any retail establishment.

Malls have a unique relationship with the retailers they house. Location, access, visibility and rent levels determine the retailer’s decision on their presence in a mall. The decisions are tied directly to the amount of business they expect to generate at any given location.

This in turn is directly tied to the number of shoppers who pass by their location. Hence, it is very important for mall owners to have deeper insight on the shoppers per square foot (SSF) data.

Mall owners can emphasise on the SSF and its direct relationship with sales to the retailer, thereby negotiating on a higher rental. Technology helps malls to calculate the SSF, determine the ‘hot’ and ‘cold’ zones and popular entrances, thereby empowering them with data and insights about their mall.

This in turn enables them to be in a position to discuss with retailers with regards to store rent, location and mall timings and promotions.

Going by the trends in the region, we can conclude that while modern consumers have extremely high expectations in terms of products, service and experience, it has resulted in low brand loyalty. This is because consumer shopping behaviour is changing at a speed that very few retailers are able to adapt to these fast moving consumer behavioural trend.

Vague and macro-dynamics are no longer sufficiently relevant, but retailers have started feeling the need to gather more micro and accurate information to analyse activities and act on authentic insight to offer consumers what they need. Retailers are slowly realising they need to become more flexible in responding to consumer expectations to maximise profitability.

There are four major factors influencing consumer decisions: Omni-channel availability, convenience, consistent service experience and a retailer’s capability to satisfactorily respond to customer queries.

To elaborate, the rise of online shopping has changed the route consumers take to an offline store. Though most of them browse and do their research online, they end up making their final purchase in a store to get a look and feel of the product.

Hence, the availability of omni-channel has led to the consumer being more aware and educated about the product before they walk into a store. In order to stand out from competition, retailers have to provide an exceptional customer experience, equip their stores with staff capable of handling consumer queries which they have gathered through the omni-channel playground and ensure they are able to efficiently manage out-of-stock situations.

Today’s consumers are no longer prepared to wait for their product. Hence, poor in-store inventory can also have a negative effect on the consumer-retailer relationship.

So we can conclude that retailers who are able to handle these factors have been successful in increasing footfall despite cut-throat competition. By better understanding the actual consumer behaviour and needs rather than using guesswork, by increasing the opportunities of consumer interaction with retailers, retailers can increase both footfall and sales conversions.

The writer is the CEO of Savant Data Systems.