People Counting III: Drive revenue by driving conversion
So you’ve reached a point where you’re ready to make customer conversion one of the top strategic priorities for your store or retail business – you should be ready with following:
- Accurately able to measure conversion rates by at least hour:
- Most POS systems would provide you # of transactions information
- You should have means to calculate accurate footfall measurements
- Reporting capabilities that will track conversions and plot trends
- Include conversion rates into strategic KPIs for the business and set a target.
- You need not know the historical conversion rates in order to set the target and start having positive impact. Based on intuition, management experience and industry knowledge, leaders should be able to set a target and drive teams towards it.
Once armed with above, here’re 4 ways you can improve conversion rates in your stores.
Watch the customers and understand their behavior
Start observing your customers very closely as they come into your stores and business premises. What’s the general path they take? How effectively they are intersected by the sales staff as and when needed? Why do they leave the store without purchase? – product placement, out of stock products, promotions or lack of them, the list would be endless.
Just starting to have a keen eye to learning and understanding customer behavior would start raising these questions – and getting answers to at least some of those.
Customer experience should be staff’s motto
Depending on type of store and business you own, you’d have different strategies for staffing. However, as a blanket rule, general motto of the sales staff needs to be to drive customer experience higher and better. Though it may mean customer engagement and face time in many cases, it doesn’t necessarily mean that in all cases.
One of the common practices we observe is aligning sales staff with transactions – on contrary, it should be aligned with traffic patterns.
Check your hourly footfall data and overlap it with sales staff data – do we have coverage to meet sales/customer at all times? If not, there could be opportunities to impact that.
Set conversion target for the store
Store manager should have a very specific conversion rate target that he should be chasing. If you own the business and manage the store, set a target for yourself and your staff and drive actions to meet that end. It is important to have continuous improvement targets for this process – key is to drive to improve against own conversion rates.
For retail chains, it is important to observe conversion trends across stores, however, one has to be careful while comparing different stores as they dynamics of each stores are different. But it is informative to have comparative understanding of all stores by looking at their conversion.
Have fun with Conversion goals!
Spice up the stores and staff by introducing innovative ways to have healthy competition and reward system – with overall goal of improving customer experience and thereby increasing conversion rates.
One of the early ways to get everyone excited about it is to explain what conversion rates are, how those impact the business and how staff can be instrumental in having positive business impact by focusing on customer.