An old adage in retail is, “when traffic goes up, conversion goes down.” The root cause being, of course, too much traffic for too few sales associates to adequately service.
Or, said differently, not enough associates to effectively cover the selling floor.
Sales associates provide the critical services that lead to greater conversion, average transaction value, sales per shopper and, ultimately, sales. However, in an effort to best manage margins, retailers look to cut labor hours – and therefore labor costs – to an optimal level.
But, sometimes a retailer cuts too far.
The case study “Optimizing Staffing for Immediate, Real ROI” examines how one retailer used analytics to decide if adding back labor hours would positively impact store performance metrics.