Increasing in-store traffic is something every retail manager grapples with daily. There is a tendency to breathe a sigh of relief as the numbers steadily climb. In reality, higher traffic counts mean nothing, if conversion rates remain lackluster. Driving consumers to a brick-and-mortar location is only the first step, albeit a crucial step, on the road to financial success. Converting location visitors yields revenue. With this key concept in mind, here are five competitive advantages of retail traffic counting every retail executive who wants to capture higher conversion rates should leverage, starting today.
1. Align staffing with traffic patterns. Retail traffic counting enables managers to identify brand power hours, those times when
…show more content…
Recognize year-over-year YoY trends
ShopperTrak's comprehensive retail tracking technology allows retailers to forecast future traffic levels with confidence. A deeper dive into the data exposes critical factors that trigger increases and decreases in traffic patterns, too.
4. Determine marketing effectiveness. One the most beneficial advantages of retail traffic counting, is the ability to measure marketing campaign performance. Higher traffic counts reflect effective marketing campaigns in action. Monitoring the number of people entering a retail store immediately after a mobile coupon release or a timed social media post announcing a flash sale, provides insight into how effectively targeted campaigns work. This strategy works equally well with seasonal promotions, email reward statements and other multichannel efforts. Better management comes with better measurements. When traffic counts climb, yet sales remain unchanged, the problem likely resides in an area other than marketing failure. If this happens, look for customer experience issues. Three possible pain-points are: (1) low inventory on the shelves, (2) poorly trained staff members, and (3) long register
…show more content…
Benchmarking includes both internal and external performance.
Internal performance defines long-term revenue potential. Understanding each location's true opportunity hinges on data-driven understanding of the characteristics and attributes unique to each individual store. For a brand with multiple locations, peer grouping similar operations allows retail executives to capture a broader view when establishing realistic company goals.
Measure conversion performance by comparing sales transactions to actually traffic count. Then, dig deeper to explore individual associate's conversion rates, sales by product or department, inventory turn and replenishment schedules, to see if strategic changes could produce positive effects.
Measure marketing performance by comparing average monthly spend to monthly revenue generated by each campaign. Watching the ROI helps managers project future earnings and expenses based on historical data.
Measure merchandising performance by closely tracking in-store placement, display height, inventory turn, and variety. Comparing in-store performance to industry standards opens the door for improving merchandising plans for increased
Retailers rely on product positioning to bolster the value of their products. Determining product positioning requires the analysis of target customers, the market competition, the definition of competitive advantages, and the communications needed to deliver the chosen position to the consumer. Kohl’s is an example of a department store that has successfully deployed a pricing a retail strategy, which evaluates and incorporates price, place, product, and promotion.
1) For a channel to succeed four location decision factors are considered; economic conditions, competition, the strategic fit, and the cost of operations. Stores need ...
This will help them in achieving maximum sales. The company’s marketing team should first collect information regarding the income level of customers who live in the vicinity of the potential store location. They should determine income of the area’s population in order to make sure that it matches that of their typical customers. They should also take a look at education level as well occupational information for the area in question.
they shop. This in turn allows them to purchase more which directly helps the business.
By targeting business travelers, we were able to make more profits. Despite the availability of close substitute (competitor), business travelers remained as our major customers and thus boost our profits.
Then I would compare what was expected and what occurred, therefore finding out the strategies that worked and failed. · A market share analysis - I would compare one level of Sydney Tower Restaurants to the Summit Restaurant (whichever level was the most similar), as they are the main competitor. Firstly, I'd work out whether or not Sydney Tower Restaurants share of the total market has increased, and then I'd assess our competitive position. · A marketing profitability analysis - I'd look at the cost of the marketing program and the profitability of the products, sales territories, market segments and sales people, then examine the ratios of advertising to sales, market research to sales and sales representatives to sales, so I could work out what was effective in different periods.
They can benefit from the tools where rapid identification and resolution of problems can only be the way to project profits within an organization. The effectiveness of the metrics is a measure of how well the output meets the needs of its customers and their expectations are met. Metrics is an important measure that monitors the effectiveness of an organizations operations process. References Barnard, W., De Feo, J. a.
One such tracking metric that can be used for determining if the marketing is effective would be knowing your user segments. When you know whom you are selling to then you can gear the advertisement or social post towards that person. Otherwise it becomes a shot in the dark. With this metric you can keep track of who buys what. This enables Pier One to focus on selling their products to those particular people. (Alhlou, 2013)This would be considered more of a conclusive tracking metric because it gives you a larger overview of things happening within ecommerce. Another tracking metric that could be used and is considered an intermediate tracking metric would be, Google analytics or another form of analytics. This metric allows for overview of who, what, where, when, why, and how for most of your questions. If you’re wondering why someone bought a lamp on Sunday at 5:00 P.M. this metric will give you results as to why and who else might have a desire to do the same. So why is analytics important to use? Because they, “ measure and track your results across time, help you to understand your visitors, leads, prospect, helps you to understand, track and improve the mechanisms used to convert your first visitor into a valuable customers”. (D 'Urbano,
According to the video “How stores track your shopping behavior”, from the study of men’s habit of shopping, they know how to get men to pay attention to their products. They change it up a little bit and get a really interesting result:”85% increase in product touch, 44% increase in sales, and 38% increase in dollar sales”. That is huge increase in numbers. That number shows how impactful the study is in their business performance. It is the result of understanding their customers’ needs and desires.
Albertson’s also has also taken steps to boost it average sales. Albertson’s goal is to fill every shopping cart to as full capacity as possible, as well as getting to know their customers a lot better. They have installed have installed a $50 million NCR Teradata where house in order to analyze customer data, and what type of products certain customers primarily purchase. They then plan to use their customer loyalty cards, so that they can match individual buying preferences against store inventories. Also through technology this data is available for analysis minutes after customers leave the store. This is a very valuable resource, because now Albertson’s may be able to reach its goal of having the right products, on the right shelves, at the right time.
Some core competencies that must be exploited are: Brand Kmart is an existing well-known and trusted national brand in USA Kmart has private label and designer clothing that is well endorsed Infrastructure Kmart has a large number of well-located, low-cost, leased stores in urban far away from competitors through out the country ( Appendix B ). Staffing Confidence by the market in Kmart is created by the achievements of its staff and management. With the turn-around strategy in place, new blood has been put into the top management structures. In any renewal there will be retrenchment as unprofitable stores are closed. This can be used as an opportunity to retain and move high performing staff to where they are needed and to get rid of non-performing staff. Anderson the chairperson of Kmart is well supported by Wall Street and the board of Directors. These new staff members enter the company with needed skills to address problems in certain areas that previously were poorly managed such as inventory control and merchandising. Store locations, layout and Performance Stores conveniently located away from competitors like Wal-mart and Target therefore less to compete for customers face-to-face. There are 250 non-performing stores who have already been identified as being more cost effective to close than continue with running costs. Expertise exists in-house for the planning of store layout and appearance to meet different customer segments. This concentration of effort will enable focus on key areas Technology Kmart has already invested in good retailing systems. The system can be use to control inventory, supplier payments, track customer buying and monitor income versus profit margins across all stores. Research and Development The planning department is well established and in cross-functional to provide various perspective. The planning department to ensure that strategies at all levels are executed can further use the access to past data and knowledge of changes in buying patterns. Financial Backing JP Morgan Chase has agreed to support Kmart to avert the current threat of closure due to bankruptcy.
Quintana can also use a balanced scorecard approach for each store. A store’s success can be based on a number of factors aside from sales. These factors could be customer satisfaction surveys, growth within the store, and management of employees and human resources.
Data can give you quite a bit of information about your customers. By examining it, you will be able to begin to see patterns and learn the habits of your customers. This could mean that you are able to provide the correct number of products at the perfect time instead of having a shortfall or being left with additional stock long after interest has fallen in the product.
There are many reasons for choosing to go into a store to purchase items needed. For instance, having someone assist you in finding what you need, or just answer questions about the product. It is also a way to get off the couch, away from the television, or off the computer. Another feature is you can see and examine what you are going to purchase. This helps in the decision making for most people. You know the minute the salesperson rings you up, the product is yours to take home and use right aw...
With the dramatic changes of business environment, the traditional measure that focuses on minimising production costs is no longer well-matched (Hall, 1980). As a result, contemporary performance measurement which adopts both financial and non-financial has been developed in prior to business strategies.