Key Metrics Every Brick-and-Mortar Retailer Must Track
In the evolving landscape of retail, the importance of data-driven decision-making cannot be overstated. Understanding and tracking key performance indicators (KPIs) are essential for retailers to stay competitive and thrive in the market. This article explores the crucial metrics that every brick-and-mortar retailer should be aware of.
General Metrics
Visitor Count
The total number of visitors to your store. This is the most fundamental metric to be able to manage your store’s employee planning and general capacity.
Occupancy
This metric illustrates the number of people present in your store at any given time. It creates a more detailed view of the visitor count and can be used to adapt staffing and deal with customer demand to deal with peak times more efficiently.
Passersby
The amount of foot traffic outside your store at any specified time.
Capture Rate
This metric is used to determine the percentage of passersby who enter your store and can provide insights into how effective the storefront marketing is.
Dwell Time
Measures how long visitors stay within your store which can help understand whether customers are interested in the store offerings.
Waiting Time/Queuing Time
This metric analyses the time customers spend waiting or queuing depending on how the KPI is used. It can be utilised to determine whether a new cashier line must be opened or if info points in larger stores need to be staffed at certain times. It can also reveal unorganised shelving if customers spend a long time in front of specific products.
Conversion Rate
The percentage of visitors who purchase something before leaving the store. This ratio of the number of buyers divided by total visitors can be used to measure store performance and demonstrate optimisation potential if compared to other stores.
Marketing Metrics
Point-of-Interest Traffic
The flow of visitors passing points of interest such as digital signage, banners, posters or other marketing material. This combined with the impression and engagement metric reveals the actual return on investment of offline marketing expenditures.
Point-of-Interest Impression
This metric identifies the number of visitors who slow down near points of interest to have a quick look.
Point-of-Interest Engagement
The number of visitors who stop at points of interest as their interest is piqued and they engage with the marketing material.
Area Metrics
Traffic per Zone
Visitor traffic in specific zones of a store or a shopping centre can reveal hot spots which are more heavily visited by shoppers. This metric can be used to differentiate a store into certain zones for suppliers to pay a higher fee to be displayed in heavily visited areas. Shopping centres can use this to adapt their rents for certain store areas based on the traffic a certain space experiences.
Main Customer Paths
The primary routes taken by customers through the store. This can be used as an additional information source for the traffic per zone metric to not only identify hot spots in zones but also within the customer journey.
To tackle this sheer amount of information, Respory developed a comprehensive solution which captures these key metrics and provides them accurately, securely, and at a low cost. By providing inch-accurate data on visitor behaviour, Respory empowers retailers to make informed decisions and enhances retail operations.
