How Can Retail Management Software Help Yield a Higher Buyer Conversion Rate?
More retailers consider data gathered by retail management software to be necessary for their business operations, according to RetailNext research. An article on the Fox Business Small Business Center website examines the findings, outlining the areas where companies can apply in-store analytics.
Efforts to collect data are gaining momentum in recent years. The RetailNext research shows 60 percent of respondents say they have significantly increased analysis of their in-store data over the past two years.
Retailers are primarily using data to improve their day-to-day store operations like staffing and floor layout, and to “identify stores’ strengths and weaknesses,” says Tim Callan, chief marketing officer at RetailNext.
Retailers are also using data to evaluate their marketing efforts. RetailNext found that 43 percent of retailers say they use data to glean customer insights or business intelligence.
The purpose, though, is not collecting data for data’s sake. It’s to convert browsers into buyers; 89 percent of companies told researchers that conversion is among the most important metrics they measure. Retailers cited shopper yield, average transaction value and sales per square foot as other important measurements.
To achieve customer conversion, the key for retailers is to capture the data in the first place. Then, as the Fox Business article explains with some good examples, retailers can put that data to use. For instance, the article highlights a new calculation called shopper yield that’s gaining traction with stores. Shopper yield is defined as “the amount a company yields from a customer in any given visit.”
Retailers used to record sales per square foot because it was an easy calculation that didn’t require much data. Now, with shopper yield, retailers are able to analyze information at the receipt level. They can examine what each customer purchased and the total amount spent. Then, retailers can go further and use customer demographics to better understand purchasing trends.
Analytics don’t always provide clear-cut answers. However, they do provide ideas that retailers can try, and then measure the results of. For example, analytics won’t tell you exactly how to staff your store or optimize your floor plans, but they’ll provide valuable information that can help you make your business more efficient.
Source: Fox Business, May 2013