People Counter And Employee Performance Management

The retail business has always been one of the most dynamic and fast-moving sectors. Because of the industry’s high turnover rates, retail managers are constantly faced with human resource decisions on hiring, transfers and placement of retail staff. In a study conducted by Hay Group in 2016, the turnover rate in the US retail industry accumulates to over 67%.

With this given fact, here are some ways in which people counters can benefit and enable better decision-making in the retail industry:

Traffic data from people counter technology can project underlying opportunities in staff management and evaluate employees’ overall performance.

With the adoption of people counting, customer counting technology, managers now have the potential perspective of evaluating employees by incorporating traffic results with their overall performance. Thus, allowing management to understand who are the ones who achieve sales targets only due to good traffic and who are the real performers in any sales environment.

Managers can compare the store’s year over year sales to the overall traffic generated by people counter data. A store’s performance can be evaluated by whether sales exceed the total amount of accumulated traffic. Data from traffic counters can depict whether the staff has been grasping every sale opportunity with every walk-in consumer. In other words, if sales do not exceed overall traffic repeatedly in a given period, management may need to rethink about individual employee performance, scheduling and operational restructures.

Sales data can further be analyzed in reference to the Units Per Transaction metric. The metric enables management to dissect the performance and understand whether employees have capitalized on each sales opportunity.


Promotion and Transfers of Employees

People counter data also benefits staff transfers between locations as it allows decision-makers to understand the scale of business the candidate has previously faced. By analyzing sales metrics with the traffic data from people counters, it provides insight into a candidate’s multi-tasking, up-selling and cross-selling abilities. For instance, a sales associate who has consistently achieved sales targets in a low traffic location can be considered a better performer compared to one who has similar achievement in a higher traffic store.

In addition, it is crucial to understand that the type of consumer traffic varies and is not the same in every location. Some stores may attract more “tourist” and “browser” consumers. On the other hand, other locations may drive more consumers with an aim for purchase. Ultimately, every individual consumer is an opportunity, regardless of their aim when entering the store. However, it is the sales representative’s aim to convert every browser into a buyer. Understanding the different types of consumers in a location enables decision-makers to see the scope of business the candidate has previously faced and their ability to connect, convert and retain their clients.


Scheduling employees to optimize store performance

People counter data helps managers plan and assess employees’ schedules. This can be done by initially defining the “types” of sales associates combined with the traffic patterns during different time frames. Sales associates who can work with multiple shoppers simultaneously should be placed during days with projected busier traffic. While sales associates who are more suited for more consultation sales can be placed on the slower days to optimize store performance.

People counting technology provides analytical support for decision making in the business. With this data, retail management software is able to project future performance based on store traffic. Additionally, people counter supports management set realistic expectations on sales goals, sales per shopper and units per transaction.

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