Best Techniques to Utilize Retail Traffic and the People Counting System

As a retailer, it is almost inevitable to face declining sales at some point. Uncertainties such as economic slumps and storefront construction allow brands to have practically no control over. Retailers can instead focus on what they can control. This is done by ensuring to convert and maximize every visitor into a purchaser. The statement seems like a no-brainer. However, based on recent shopper statistics, 85% of store visitors in North America alone still leave the stores empty-handed.

As a retailer, it is almost inevitable to face declining sales at some point. Uncertainties such as economic slumps and storefront construction allow brands to have practically no control over. Retailers can instead focus on what they can control. This is done by ensuring to convert and maximize every visitor into a purchaser. The statement seems like a no-brainer. However, based on recent shopper statistics, 85% of store visitors in North America alone still leave the stores empty-handed.

Once retailers have the data at hand, it is not only about interpreting but also drawing actionable insights from them. Here are some recommendations:

 

Too many alternatives confuse the consumer

Shoppers in general “think” they like lots of options. In reality, as human beings, the paradox of choice is difficult and so is decision-making.

A relevant study was conducted by Iyengar and Lepper in 2000 by placing two tables of jams. In table 1, visitors had only 6 options for tasting while table 2 offered 24. The result was simple: although more people stopped by table 2, only 3% walked out with a purchase. On the contrary, 31% of shoppers that visited table 1 walked out with a purchase.

Retailers can choose to limit the flavors, color and brand options. Offering more may actually mean selling less. However, this brings forth the question. How and where do retailers merchandise the products?

With people counting technology, retailers can understand whether conversions are successful with merchandising changes. Merchandising decisions based on “gut feelings” can now be backed with analytical support.

 

Placing promotion items at the checkout

In-store consumption is often triggered by the “shopping mindset”. This refers to once a purchase decision has already been made, consumers feel more inclined to continue shopping. Retailers can choose to place promotional items at the checkout in order to trigger this impulsive shopping behavior.

People counters enable management to understand whether promotions have been effective based on cross-referencing visitor data with sales to calculate conversion rate within a designated area. The rate is calculated by dividing the number of transactions by the store traffic within a designated time period.

On top of that, retailers may also choose to set up customer tracking devices to analyze customer linger time and engagement within a specific area.

 

Allocate your staff wisely

People counter data helps managers assess and plan employee’s schedules. Sales associates who can work with multiple shoppers simultaneously should be placed during days with projected busier traffic, while sales associates who are better suited for more consultation sales can be placed on the slower days to optimize store performance.

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