How to calculate KPIs FOR Retail and Visitor Analytics
Here we go through the most important thermology from the data collected and how you calculate the KPIs used when working with retail and visitor analytics. The goal is to identify deviations to be able to improve the visitor and customer experience.
It’s important to note that we differ between a visitor (a person that visits the business/area) and a customer (a visitor that makes a purchase).
First, we need to collect information to be able to run analyzes and make improvements. This is the most important data for a retail store working with visitor analytics.
Traffic/Number of visitors
The number one within visitor analytics. This is where we start the journey within the world of visitor analytics. The number of visitors tells us how many visitors we have had during a specific period of time.
How many people passes-by outside the store and are exposed to the brand. Gives us the potential brand reach.
Also called visitor journey and zone correlations. We use this KPI to analyse how different areas are being used. For example, you can see how people move from one point to another.
Then we collect all the necessary sales data to be able to differ between the number of visitors and customers.
The number of completed receipts tells us how many buying customers the business has had.
Gives us the total amount of sales per business.
This is the number of items sold in the business.
When we have the visitor and the sales data we can use a key performance indicator to measure and demonstrate how effectively business objectives are being achieved.
(units sold / no. Receipts)
One of the most used KPI within the retail business. Basket sizes refers to the value of the number of products sold in a single purchase.
(Store Visitors) / (Passing by the Store) x 100
When we know the number of people entering the store and divides it by the number of people passing by the store, we have the capture rate.
Number of Transaction / Total Number of Visitors x 100
This is also one of the most used KPIs and thanks to this one we can differ between visitors and customers. The conversion rate is the percentage of a store's visitors that make a purchase and become customers.
(total number of sales hours / number of visitors) = number of visitors per hour
-> (60 / number of visitors per hour)
Access rate shows how available the staff is compared to the number of visits to the store.
Example: 2 people are working 8 hours each and there are 400 visitors that day. Each of them must then serve 25 visitors per hour. The number of visits is divided by 60 (minutes per hour) per. Employee, which means that you have an average of 2.4 minutes for each visitor.
Customers / Sales hours
(total sales hours / total customers x 100)
This KPI is similar to the access rate but instead, it tells us how available the staff is compared to the number of customers.
Average Dwell time
(total visitors / total dwell time)
Tells us how long-time visitors have spent in a certain area of the store. Dwell time has always been an important KPI as a driver of increased sales. Today it is also an important tool to measure customer experience – if visitors stay longer, it could be an indicator that the visitors are happy with the visit, or that there are too long queues.
The KPI is used to show how the turnover compares to the square meter area of the store. Great for bench marketing against other locations or increasing the efficiency of the store.
The customer/per square meter is the KPI that tells us how many customers the store has compared to the size of the store.
How many visitors are there per square meter? This is also useful when doing bench marketing against other locations.
Check out our retail guide
A step-by-step guide for retail Analytics. Take control of the sales in the store and start converting more visitors into buying customers. See results after 4 weeks.
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