![\"Retail](\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\")
<\/a><\/p>\n<\/p>\n
![](\"https:\/\/blogger.googleusercontent.com\/img\/b\/R29vZ2xl\/AVvXsEi0Ah2DAZirluC7wJ6TPXrYtsNS3bcs33zm9wZx1tGAIWtx8Hskh_Zjd2pXVkohgKuiEiYPGs429ND6kWCOJ62D9DlVi6j2ZSL3rEFx-r0xyZ2qzXQzcpfIwGqJu6kAUyxZQtHzA3_7D79oBll0k-ptYgLBWI_Lm9RcSqWT0PBOdnpSzyCSWUFw\/w640-h358\/Retail%20Adventures%20Blog%20--%20Store%20Traffic.jpeg\")
<\/div>\nExperts constantly tell retailers that they need to be more Most \u201cdata-driven retail\u201d conversations jump straight to 1) 2) <\/span>What percentage of If you cannot answer these basic questions, then you are not Sales Are an Outcome, Not A Diagnostic<\/span><\/b><\/p>\n Most retailers track sales daily and transaction detail \u2013 Sales and all the transactional data tell you what happened, Sales are a function of only three things: 1) Traffic<\/b>, So, when sales change, you should be able to clearly tell if <\/p>\n <\/p>\n Why Store Traffic Is the Starting Point & Conversion Every sale begins with a visit. No visit. No opportunity to Without traffic, operators answer those questions with How to Calculate your Conversion Rate<\/b><\/span><\/p>\n This is not complicated, and that is also why it is so <\/p>\n <\/p>\n <\/p>\n If you improve conversion from 50% to 55%, you increase For every retailer \u2013 and especially independent retailers You can also drive more traffic into your store, but this What Drives Conversion in the Real World<\/span><\/b><\/p>\n I have been studying brick-and-mortar store traffic and Specifically: Are you scheduling staff to traffic volume and Traffic and conversion data do not replace good retailing; Using Traffic to Diagnose Problems<\/span><\/b><\/p>\n Store traffic is almost always the first thing that gets This matters because the fixes are different. Without High-traffic stores often assume they are performing well. Retailers who already track and manage conversion are far Getting Started: A Simple Daily View <\/span><\/b><\/p>\n Independent retailers do not need enterprise analytics. If you are not currently measuring traffic, start with Why YOUR Store Traffic Is a Gift<\/span><\/b><\/p>\n Retail success is not driven by slogans. It is driven by <\/p>\n <\/p>\n <\/p>\n <\/span><\/b><\/span><\/p>\n <\/p>\n Mark Ryski<\/b> is a retail <\/p>\n
\ndata driven. That they need to stop relying just on gut and intuition, which
\ncan often mislead, and instead trust \u201cdata.\u201d That advice is correct, but it is
\nalso profoundly unhelpful.<\/span><\/p>\n
\ncomplex systems, advanced analytics, and expensive platforms. Or, digging even
\ndeeper into the sales transaction data your POS system already produces. That
\nframing turns a practical idea into an intimidating one. Becoming data driven
\nin retailing starts with answering two remarkably simple questions:<\/span> <\/p>\n
\n<\/span><\/span><\/span><\/i><\/b>How many people walked into your store?<\/span><\/i><\/b><\/span><\/i><\/p>\n
\nthe visitors made a purchase?<\/span><\/i><\/b> <\/p>\n
\nmanaging performance. You are observing outcomes and there\u2019s a big difference
\nbetween the two. <\/b><\/span><\/p>\n
\nwhat sold, average ticket, and units per transaction. But very few track hourly
\nstore visitors and conversion rates (i.e., the percentage of visitors who
\npurchased).<\/span><\/p>\n
\nbut they do not tell you why it happened, and that is what makes traffic and
\nconversion rate the foundational metrics so important. They tell you what to
\nfocus on to drive sales. <\/span><\/p>\n
\nthe number of people who visited the store defines the stores\u2019 sales
\nopportunity; 2) Conversion Rate<\/b>, the percentage of visitors who made a
\npurchase, and 3) Average Sale<\/b>, the average amount each buyer spent.
\nThat\u2019s it.<\/span> <\/span><\/p>\n
\nit is any one of these three factors, or a combination of the three. If you
\nonly know the sales figures, you cannot tell which of those three moved. That
\nis why store traffic is foundational. It provides the context that makes every
\nother retail metric meaningful.<\/span> <\/span><\/p>\n![](\"https:\/\/blogger.googleusercontent.com\/img\/a\/AVvXsEiwqBiZS7xc4NH_NY09Kk0ZT8V6Y9il5eIPD71JkHgwmZfqg-xGH6jnn_czGKVQ3PXkpr2v6y8Ct0eVBWC8JSFaUVxTCZlSlnEcN5B76bxTz4W9K-yF38J2t-CrpfEgfOk70PoCtolXhmNgUAOnEEKibo1Ta2NWSKoIqlRMdCBZ_Uaf2m2c1ntr\")
\nis the Primary Performance Lever<\/span><\/b><\/p>\n
\nsell. That is not philosophical, it\u2019s the mechanical truth that every retailer
\nneeds to be able to see. When you know how many people entered your store, you
\ncan begin answering basic operational questions:<\/span><\/p>\n\n
\n marketing drive incremental visits?<\/span><\/li>\n
\n merchandising change improve buying behavior?<\/span><\/li>\n
\n staffed appropriately for actual demand?<\/span><\/li>\n
\n converting shoppers at a reasonable rate?<\/span> <\/li>\n<\/ul>\n
\nopinion. With traffic, these questions are answered with evidence. That is the
\nessence of being data driven.<\/span> <\/span><\/b><\/p>\n
\npowerful. Conversion Rate is the clearest indicator of how well your store
\nturns opportunity into revenue. Example: 200 visits, 100 transactions and
\nConversion Rate = 50%<\/span><\/p>\n![](\"https:\/\/blogger.googleusercontent.com\/img\/a\/AVvXsEiACcH8tidHb8BC8_EmYjnSoaoDhDe857582rqTMwRU4gYv0H4vwVwWCjMuI4NfUp5VFoGlgB8XX5T7cPijY9Mi2yzdNUaBAOF23D5hedIQyW5JuDiFnsTTNg2rpK1J3AqiUnToY4gHKr_NayTP--buByT_Op8kl1wNbqA18ftsHaw5t6wvQEKb\")
\ntransactions from 100 to 110 \u2013 without adding a single new visitor.<\/span><\/p>\n
\nwho typically get less traffic \u2013 even a modest increase in conversion rate can
\nhave a meaningful impact. <\/span><\/p>\n
\nusually requires some investment in marketing or promotions to encourage
\nvisits. If you reside in a mall, you likely have little ability to influence
\nmall traffic. However, you 100% influence how well your store converts the
\npeople who already show up. That is why conversion is the primary operational
\nlever.<\/span> <\/span><\/b><\/p>\n
\nconversion rates for more than two decades, and I can confidently say that
\nconversion does not improve because you start tracking it and put it on a
\ndashboard \u2013 it improves because of behaviors in your store. <\/span><\/p>\n
\nvisit timing? Are shoppers acknowledged? Are questions being asked? Are
\nproducts being recommended? Are objections handled? Are associates treating
\nvisitors like the precious gift they represent, or are they merely asking, \u201cCan
\nI help you?\u201d These are execution issues and focusing on these are the keys to
\ndelivering better sales outcomes. <\/span><\/span><\/p>\n
\nthey measure the performance in ways that sales outcomes alone could never.
\nThey expose whether good retailing is actually happening or if you\u2019re
\nsquandering the precious store visits that you are getting.<\/span> <\/span><\/b><\/p>\n
\nblamed when sales outcomes are down. But the truth is that sales can be down,
\neven when sales are up, and sales can go up, even if traffic is down. This
\nhappens because of the simple truth: what you do with your traffic is more
\nimportant than just driving traffic. Traffic immediately separates marketing
\nproblems from in-store problems. Here are some examples of the insight and
\naction:<\/span><\/p>\n\n
\n down, conversion stable \u2192 awareness or demand issue<\/span><\/li>\n
\n flat, conversion down \u2192 in-store execution issue<\/span><\/li>\n
\n up, conversion up \u2192 it\u2019s working\u2026keep going!<\/span><\/li>\n<\/ul>\n
\ntraffic, many retailers attempt to solve execution problems with more marketing
\nand solve marketing problems with more training. Driving more traffic into a
\nstore that has poor conversion is like putting water in a bucket full of
\nholes\u2026it wastes time and money, and ultimately does more harm than good since
\nmany of these first-time visitors may never return.<\/span><\/p>\n
\nSometimes they are, but often they are not. When traffic is plentiful, weak
\nconversion is masked by volume. When traffic softens\u2014as it eventually does\u2014the
\nunderlying problem becomes visible.<\/span><\/p>\n
\nbetter positioned to absorb volatility.<\/span> <\/span><\/b><\/p>\n
\nDon\u2019t get caught up in the hype and headlines. All retailers need foundational
\ninsights that are easy to interpret and action. They need basic insights to run
\ntheir store and make the operational decisions to deliver better outcomes. They
\nneed three numbers: Traffic counts, Conversion Rate and Average Transaction
\nvalue. Look at them daily and by hour of the day. Compare to last week and last
\nyear. You will discover that patterns emerge and these patterns hold the key to
\nimproving your results.<\/span><\/p>\n
\nsomething simple. Invest in a good quality, accurate traffic counter, and then
\nmarry the traffic data with transaction counts to calculate conversion rates \u2013
\nthat\u2019s all you need to get started. Once traffic is visible, conversion rates
\nbecome visible, and performance becomes manageable.<\/span> <\/span><\/p>\n
\nunderstanding what is actually happening in your store and how you act on it.
\nStore traffic is the foundation for that understanding. If you do not measure
\nit, you are guessing. If you do measure it, you have a chance to improve. That
\nis what being data driven really means.<\/span><\/p>\n
\n<\/div>\n![](\"\/Users\/BENDER~1\/AppData\/Local\/Temp\/msohtmlclip1\/01\/clip_image008.png\")
<\/span><\/b><\/span><\/p>\n
<\/b><\/span><\/b><\/span><\/p>\n![](\"https:\/\/blogger.googleusercontent.com\/img\/b\/R29vZ2xl\/AVvXsEgoVL6B0B_z6p2aCsU5I_bpPvz5RFJx6X73gdtyuTdmRGmYtArmRznlnJHKK-3O3DU3334dzadfQ0TSVI2ta9Tn3EX8jj9NhXu2MCqs3N3JLMgcHYjY1Z28yaGVVLJrHy6DoqBM8WAS1siU2izFWCZhdoMoz-IS0IflTn6B6HFzLqTA5_8VTUAM\/w226-h246\/Mark%20Ryski%20Book%203.png\")
<\/span><\/b><\/span><\/div>\n
<\/b><\/span><\/div>\n
\nanalytics expert and Founder & CEO of HeadCount Corporation. He has works with retailers in more than 20 countries to
\nunderstand how shopper visits translate into sales, labor demand, and
\noperational performance. He has authored three books on the topic, including
\nhis latest award winning, Store Traffic Is a Gift: The Retailer\u2019s Guide
\nto Converting Visits into Sales<\/i><\/b>. Mark can be reached HERE.<\/i><\/span><\/p>\n