After a big holiday weekend, everyone is always thinking of what can be done better next year.
Stay tuned tomorrow for a Presidents’ Day Recap to see how your store compared to the industry average this year.
This week, we’re discussing the newest trends in retail, including the use of new technologies and changes in consumer behavior that affect how people shop.
Today’s Rundown
OUT NOW – Q4 2023 Benchmark Report: Sign up HERE to receive the report and see how you compare to the industry average.
- The Data-Driven Future: The 4 Principles to improve your foot traffic.
- ESL standard: How the Bluetooth ESL Standard aims to replace billions of retail paper labels.
Making sense of your store data
The key is to collect the essential data about your business every day and organize it in a way that is useful.
Looking at averages is just one way to see your data. But not all averages are created equal. For example, there are the mean, median, and mode averages, and each has it purpose.
I once heard someone jokingly say: “If you put one foot on a block of ice and another on a fire, your average temperature would be just right.”
This is an example of the misuse of a mean average.That’s the thing about averages… context matters. And, within the proper context, averages can be a powerful tool… like when you compare the average number of engagements to daily tickets, you get a salesperson’s conversion rate.
There are many ways to see your data and improve your business. But there may be times that you are too close and need to take a step back to see the forest through the trees. And like a tree that falls in the forest when no one is around to hear it, there may be things you can never really know.
The 4 Principles to Improve Your Retail Foot Traffic
When looking at retail foot traffic conversion rate, around 7 out of 10 people who visit a furniture or appliance store leave without buying (according to our Q4 2023 Home Furnishing Benchmark Report).
Here are the four basic ingredients to improve your retail foot traffic conversion rate
-
What gets measured gets improved
This one is a no brainier. The problem usually is not whether to measure something, but what and how to measure it. This is why we dig into the data that leads to better results, so you don’t have to. -
80% of the effect comes from 20% of the cause
You may know this as the Pareto principle (also know as the 80/20 Rule, the Law of a Vital Few, or the Principle of Factor Sparsity). The approach here is to analyze the top 20% of data samples with the understanding that herein lies best practices and the insights that lead to opportunities for greater improvement. -
150 is the number of individuals with whom any one person can maintain stable relationships
Known as Dunbar’s number, it deals with how many relationships an individual can effectively maintain. Bottom line is, there’s a maximum number of opportunities your salespeople can effectively manage, and if they are over that limit you are losing sales. -
The annual price of a product or service should yield a 10x return to the customer
Knowing how to price your product or service is always a challenge. This is why we created an ROI calculator that is designed to deliver a 10x ROI for every 1% increase you make to your retail store foot traffic conversion rate.
Retail Trends
From Groceries to Gucci: The resurgence of Community Retail Hubs.
ESL standard: How the Bluetooth ESL Standard aims to replace billions of retail paper labels.
Sustainable shopping: Walmart makes billion dollar tech acquisition that will delight customers.
Random Irrelevance
Wrong answers only: OpenAI’s ChatGPT experienced an unusual bug, spouting gibberish responses to user queries.
An extra hand: A Dutch startup, Monumental, is using robots to lay bricks.
Can’t miss: Where & when to witness the 2024 total lunar eclipse.
The post Making sense of your store data appeared first on Trakwell.ai.
View Original Article
