By counting how many people enter your shop, we can determine other key metrics which are crucial for survival in today’s retail climate – such as Conversion Rates and ATV (Average Value Transaction). For more definitions of retail terms, consult our Retail Analytics Dictionary.Get in Touch
Ipsos Retail Performance. Footfall Definition.
Why should I count my footfall?
Calculating footfall is a key metric for store and senior managers wanting to increase sales and drive profits up. By counting footfall, retailers can identify at any time of day – how many purchasing opportunities they have in-store and crucially, by incorporating that with sales data – how many they are missing.
Knowing your hourly, daily and weekly retail footfall can give retailers that extra edge to target peak hours, convert browsers into customers and ultimately optimize store performance.
How to measure footfall?
Counting the number of people who enter your store tells you how many buying opportunities you have had in-store for any particular day. By dividing total transactional sales by footfall data for that same period, you can find out how many shoppers were persuaded to put their hand in their pocket and make a purchase: i.e. your conversion rate.
By measuring customer footfall and establishing your conversion rate, you can focus on key areas to improve store performance. Just some of the insights you can measure, include:
- Lowest performing hours
- Staff scheduling
- Effect on sales volumes
- Percentage of shoppers who purchase
- Underperforming stores
- Marketing effectiveness
- Real time footfall traffic
Once your retail footfall is being tracked and measured, (footfall analytics), we can then bring in our experts who can analyze your data to identify customer trends and find out what is happening in-store and why. With these invaluable customer insights:
With footfall data, store managers can:
- Understand what factors are driving store sales
- Match your staffing pattern
- Make better use of budgets
- Discover what are your worst performing days in terms of conversion rates
- Evaluate and target poor performing hours to improve conversion rates
With footfall data, area Managers can:
- Find out if marketing initiatives delivered more traffic to stores
- Discover which shops provide the greatest opportunity for growth
- Measure the effect new service training programs have on improving conversion rates
- Evaluate loyalty card events – do they drive additional traffic, when should you have them, are they buying or simply just enjoying the event?
With footfall data, head office can:
- Plan with confidence for the future
- Understand customer trends
- Assess the real impact of a new store concept or refit
- Use data for discussions during lease negotiations
- Evaluate and optimize store layout performance
- Measure effectiveness of changes to the marketing mix
- Understand the impact of store promotions
- Measure the effectiveness of marketing spend
- Find out how you are performing against your competitors with our RTIs
- Identify brand strength – do your stores follow the same footfall patterns as your competitors
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