RETAIL CASE STUDY
A major Scandinavian fashion retailer operating a large number of stores in various locations discovered that they had been letting others, including their competitors, make important strategic decisions greatly affecting their business.
Like many retailers this firm had no established procedure of determining their opening hours. They simply looked at what other companies near their locations were doing and followed suit.
KEEPING TRACK OF THE RIGHT METRICS BUILDS PROFIT
When Peocon started to count customers for this organisation in one of their main locations it became apparent that it was possible to achieve better business
results. Interestingly, the first thing Peocon consultants noticed was that the last two opening hours of two specific days of the week were by far the busiest.
In the beginning of this period the conversion rate was notably higher and the average basket was larger than on other parts of the day and week. However as it drew closer to closing time the conversion rate fell rapidly when customer numbers kept increasing. In fact when looking at the data in more detail it looked like the store was actually closing its doors on its customers at times when they were most likely to purchase.
FOCUSED STAFFING TO BUILD REVENUE AND PROFITS
It was then suggested by Peocon that the store changed their opening hours and staffing to focus on providing the necessary assistance and service to willingly
paying customers.
The store was kept open an hour longer two days a week and one clerk moved from quiet to busy time. The results were higher sales and a conversion rate of over 18% on average until closing time leading to much higher profits.
KNOWLEDGE CREATES BUSINESS VALUE
This retailer was able to learn more about the organisation and find ways of improving a business that was already regarded as very successful. Keeping track of Key Performance Indicators and pro-actively using the information provided by Peocon solutions made this possible.
Counting solutions provide data that translates into valuable business knowledge. Analysing patterns in customer traffic can provide insights into the future and help organisations win over competition.
CLOSING THE DOOR ON PAYING CUSTOMERS?
HIGHER CONVERSION RATES
INCREASED SALES
HIGHER PROFITS
For more information:
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or call +354 595 3500