Retail Sales Metrics
In a retail environment, there are 3 key factors that have an immediate impact on sales performance.
Sales = Traffic (Footfall) x Conversion Rate x Average Sale
Traffic is the number of new prospects and repeat customers coming into the store. The number of new prospects mostly depends on the effectiveness of your advertising and promotional efforts as well as word of mouth. (Usually marketing is responsible for driving traffic into the stores.)
Conversion Rate is the rate at which your sales staff convert shoppers into buyers. They need to know how to build a strong rapport with prospects and all of the steps in the selling process in order to be successful at increasing Conversion Rate. In a self-serve environment, the store layout, visual merchandising and overall presentation of the product also plays a major role in increasing Conversion Rates.
Average Sale per Customer, again, depends largely on the selling skills of your sales associates and their ability to determine the prospects needs and wants, and to be competent in building on those needs and wants. Adding more and more higher margin items on to the sale takes awareness and skill and effectively increases the Average Sale per Customer.
It follows then, if you want to increase your sales, you must increase at least one of these 3 variables… preferably all three at the same time.
One important point I want to make here, though: There is a hierarchy of actions to increase each of these variables.
For example, it does not make sense to spend a whole bunch of money on advertising to drive traffic into your stores, if your people are not equipped (trained) to maximize their opportunity in terms of Conversion and Average Sale per Customer.
In other words, to optimize your efforts you have to make sure that your sales force is ready to take advantage of the increased traffic and that is done through effective training and skill building.
We have a fast and economical solution for you to solve this issue. It’s the Retail Business Academy.
In just a few hours, your sales associates and supervisors can learn everything they need to know to be most effective in increasing the Conversion Rate and the Average Sale per Customer.
Click below on the Banner and Join Retail Business Academy and make sure your staff goes through the material before you spend, and waste, thousands of dollars in Advertising funds.