RETAIL CASE STUDY
An entertainment retailer operating a number of locations was experiencing very different business results from very similar stores. The client did not track their visitors and had no way of identifying their most valuable locations in terms of customer traffic.
SIMILAR LOCATIONS, 62% DIFFERENCE IN REVENUE
However one of two almost identical stores outperformed the other by 62%.
Management called in the store managers to try to figure out the causes of this
difference. The worse performing manager was convinced that the other location was simply recieving more customers and therefore performing better. However after debating this situation with store managers, senior management was not
convinced that the difference was due to differences in traffic only.
DATA AND ANALYSIS CREATES KNOWLEDGE
An implementation of a Peocon counting solution proved that there were more
factors involved in this large revenue difference. Difference in customer traffic could only count for 20% of the difference in revenue.
What really was happening was that salespeople in one store were performing better than the salespeople in the other. Not only were they converting 16,7% of visitors to paying customers, compared to 13,9%, their average basket was also 6% larger.
KNOWING WHAT TO MEASURE IS WHAT COUNTS
Peocon consultants worked closely with management on improving these
statistics. An 8 week motivational campaign was launched to improve staff
customer interactions. Staff received weekly feedback from Peocon consultant on their progress. In 8 weeks the average conversion rate had risen a staggering 36% to a sustained level of 19%. More revenue with the same fixed costs led to higher profit margins.
KNOWLEDGE CREATES BUSINESS VALUE
This retailer was able to learn more about the organisation and find ways of improving a business regarded as very successful. Keeping track of Key Performance Indicators and proactively using the information provided by Peocon 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.
DIFFERENCES IN STAFF
PERFORMANCE DETECTED BY COUNTING CUSTOMERS
HIGHER CONVERSION RATES
LARGER AVERAGE BASKET
INCREASED SALES
HIGHER PROFITS
MORE MOTIVATION
1700% ROI
For more information:
contact sales@peacon.com
or call +354 595 3500