Store traffic has been a staple metric for the retail industry for years, as in its most basic form, it represents opportunity – the opportunity for stores to deliver a value-added shopping experience to its walk-in customers. Now, with the convergence of a variety of technologies and data streams, traffic is bigger and better – Traffic 2.0! – and its better equipped to help retailers more proactively manage their businesses.
That was the messaging delivered by Natasha Olechowski and Bridget Johns during April’s edition of the RetailNext webinar series, “Increasing Sales with Traffic 2.0.”
Store traffic is a fundamental metric, and essential for calculating simple baseline retail metrics like conversion, and more sophisticated measures like Shopper Yield. In fact, case studies show retailers can achieve immediate sales growth of 6% simply by better aligning staffing to peak traffic hours. However, traffic traditionally has been a “rearview mirror” metric, showing where a retailer has been, but offering up few insights on where it should go.
Traffic 2.0 insights, layered on the traditional traffic fundamentals, begin to empower retailers to develop more targeted strategies and execute upon them.
Traffic 2.0 starts outside the store door, and help determine the capture rate, or the percentage of passersby that actually enter the store, a meaningful metric to evaluate window displays and promotion campaigns.
Once inside the store, data on shopper demographics and geographic origin help retailers determine how to fine-tune their strategies. In one case, a store noticed a significant decline in traffic. Rather than blindly creating and deploying an untargeted countermeasure, further investigation found the decrease in traffic was derived from a sharp decline in international shoppers visiting the store. New data from new data steams allow for more refined strategies.
Traffic 2.0 goes even further, and leads retailers to discover Full Path Analysis, an understanding of how shoppers navigate and shop the store, and the opportunities that exist not only on how to eliminate friction points and better the shopping experience, but how to increase store performance metrics as well.
You can access “Increasing Sales with Traffic 2.0” through our webinar on demand portfolio, as well as find out more through the eBook, “What Every Retailer Must Know About Traffic 2.0.”
Questions about Traffic 2.0 and its underlying data streams? Join in on the Traffic 2.0 conversations on Twitter with webinar presenters @NatashaOlechows and @BridgetJohns.
Be on the lookout for the next edition of the RetailNext webinar series!
Join the #retail and #backtothestores conversations on Twitter @RetailNext, and at www.facebook.com/retailnext.