One of the most effective ways to measure your store’s performance is to track conversion and implement ways to catch a customer’s attention.
Footfall on the high street might be declining, but that doesn’t mean your sales have to. In this article, we’re looking at how retailers can measure and improve conversion.
Please note: A version of this article first appeared in The Company of Master Jewellers’ Spring 2023 report.
How can retailers measure conversion?
What percentage of visitors to your store made a purchase? Understanding how many customers converted will help you to set a plan of action to catch their attention.
There are several ways to track visitors, including:
- People counters
- Smart mats
- Video and heat sensors
Once you know how many people visited your shop, you can work out your conversion rate. Simply divide the quantity of transactions by the quantity of visitors, then multiply by one hundred.
Retail Dogma suggests that a good in-store conversion rate is more than 20%, but perhaps the best way to track success is to work out your shop’s average conversion rate for the week and use that as a benchmark. You’ll then be able to monitor any increases or decreases, allowing you to track the significance of any changes you’ve made to your retail strategy.
Steps to improve conversion
Attract customers as they pass by your store, and keep them interested once they get there by following these top tips:
- Consider AV digital display. 80% of the public have visited a store due to digital signage catching their attention, so this is a great way to boost capture rate
- Use your “power wall”. Most Brits tend to turn left when they enter a store. Make sure you capitalise on this by advertising in the most prominent space to attract the interest of your customers once they’re in store
- Pay attention to your shop layout. For example, keep the space clean and clutter-free to allow your customers to browse more freely
- Advertise promotions mindfully. Don’t overwhelm your space with deals, but do offer limited-time promotions to drive conversions
- Create a friendly, welcoming space. Employees should be on-hand to offer outstanding customer service at every touch point
- Ensure your point of sale is at the back of the store. This should increase dwell time, ensuring customers have ample time to browse your products before joining a queue
- If possible, mobilise your point of sale. This will allow you to process payments much faster. This ultimately improves the customer experience by reducing the time they have to wait at the checkout
- Encourage customers to spend time in your store by making your space engaging and interactive. The Wall Street Journal predicts a 40% increase in sales when retailers encourage customers to spend more time in their space
- Promote value, not just cheap prices. Customers are more concerned about staying in budget than seeking out rock-bottom prices for low quality goods. Communicate the quality of your products to convert customers in the market for high-ticket items
Boost your conversion rate by using retail finance
Offering customers the option to spread the cost of their purchase can increase conversions, persuading customers to buy now rather than wait for their savings to grow.
Our unique research found that 67% of customers would not have made a jewellery purchase if finance had not been available. That’s a staggering number of sales potentially lost without additional payment options.
To find out how your business can reap the benefits of retail finance, get in touch with our team.