Why is it so important for retailers to know the number of visitors and what do you do with all the data?
In this blog post we go through why retail stores, shopping centers and public institutions should know their footfall data, and why it is such a great idea to combine it with information from cash registers.
The interest for gathering information about number of visitors has dramatically increased during the last 30 years. When we at IMAS started counting people and customers back in the 90’s radar sensors where the latest technology in the house. Today we see exciting new technologies and updates hitting the market every year, like for example WiFi-technology and camera sensors with AI.
The basics for footfall traffic remains the same
However, no matter what technology we are using the basics within retail and physical shopping remains the same. Count the number of people entering and exiting the premises, gather the sales data, analyze the information, make good forecasts, and try to identify deviations.
Predict the number of visitors with footfall traffic
With the data available we can start analyzing the footfall traffic collected. Soon, the analyzer will with very high probability predict how many visitors will enter the store every day.
Predict the stores conversion rate
If we also have the sales figures from the cash registers, we will be able to predict the conversion rate (blog post) in the store. In other words, how many percent of the visitors that makes a purchase an converts into customers.
Visits take place in predictable patterns
This means that every week, the same percentage will pay a visit. The traffic may vary slightly from week to week, and seasonal variations will also affect the total, but the days of the week will be relatively similar.
We will notice that the same regularity appears when we see the traffic per hour, as the percentage of daily traffic. That percentage will not always be the same, but stable enough so that you can make very good forecasts. We will soon also see the same patterns when it comes to the conversion rate.
How to take control of the sales in the store – a-step-by-step retail guide
When we know our customer base and our sales share. What do we do with it? How do we improve our sales effort? Read more in our retail guide on how to convert visitors into buying customers and see results after 4 weeks.
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.
About IMAS Group
We help and support shopping malls, retail stores, smart cities, airports and public institutions (plus many more), collect and understand valuable information about visitors and customers.