Link Analytix Norway to Assist ARK Bokhandel with Digital Measuring Tool

Link Analytix AS, a subsidiary of the consulting agency BigBlue&Company, have reached an agreement for a long term collaboration with the Norwegian bookstore chain ARK Bokhandel AS.

The contract includes Link's proprietary software for optimal store operations in order to ensure traffic data to all of ARK's 142 stores in Norway and the measurement of conversion from traffic to actual sales for the chain's visitors. Espen Thømming, CEO of Link Analytix Norway had the following to say about the upcoming collaboration: 

"We are grateful for the trust "ARK Bokhandel" has shown us with this contract and proud that they have chosen our solution".

Our norwegian readers can learn more about ARK Bokhandel here

 

Contact Information

Espen Thømming, CEO Link Analytix Norway

Tel: +47 951 49 885

mail: espen.thomming@linkanalytix.no

Why Should Shopping Malls Use People Counters?

Evaluating marketing campaign effectiveness can not rely solely on sales figures. Increased foot traffic must be taken into account. Not all shoppers will buy on the first visit. They also may spend on other than the target merchandise or vendor. Using targeted sales data alone, therefore, is an incomplete indicator of shoppers pulled in

CPM (cost per mille) or CPT (cost per thousand), depending on the preferred nomenclature used, is a direct measure of money spent on marketing to entice shoppers. Having the data on the actual number of people walking through the doors creates a more accurate metric. Without this tool the evaluation falls back on the best estimate method which, without doubt, can skew the results leading to serious, costly errors.

High traffic flow area must be supported by high sales

Taking a look at the SSF (sales per square feet) measurement, there need to be an adequate traffic flow into those square feet to support sales. Using only daily sale data does not give an accurate indication of shoppers. Again, the shoppers may not purchase that day, however, that does not mean that marketing and merchandising plans are not making an impact. Factoring in the those feet on the floor gives a much clearer image of marketing draw.

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So why should shopping malls use people counters? To provide those enhanced metrics. In the current economic atmosphere every advantage needs to be applied. Knowing with a certainty that there is adequate traffic to support the businesses in the mall and thereby the mall itself. Relying on older, less exacting techniques, is no longer a best practices option. The technology is available to capture the data so it can be put to use in an effective manner

Key Success Factors of Retail in an Increasingly Online World

When it comes to retail locations, the playing field has changed drastically over the years. Today, with online shopping and Internet-based stores popping up daily, both new and established traditional stores need to focus their efforts if they want to be successful. The best way of doing this is by understanding the key success factors of retail locations.

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Driving Customer Traffic

It's no secret that customer traffic is a key component of retail success. The most important formula for driving traffic relies on making sure that you know what customers are looking for, and that you have it available at the right price. In addition, you also have to ensure that customers know what you have. This means you need to take advantage of advertising opportunities available in your area in order to get consumers inside your location.

Be a Fast Follower

While many believe that the key to success is to be the first to develop a new product or service, research has shown this is not the case. In fact, there is a failure rate of around 47% for those who are the first to introduce or sell a product. This is compared with only an 8% failure rate for those who enter the market early on. If there are new products that you believe have potential, taking advantage early and offering them in your locations is important.

Technology Matters

Technology is also a major factor in driving customer traffic. Utilizing Facebook and other online platforms is a necessity, and one that will keep your store in the forefront of current and potential customers' minds. Announcing sales and new products on these platforms will keep interest high, and drive traffic to your store. Even though you are a brick and mortar location, technology is still an important success factor that you should not ignore.

Customer Service

Once consumers are inside your location, your customer service is the most important factor in generating sales and repeat customers. If your customers are well-served, they are considerably more likely to make a purchase during their visit, and to return later. Ensuring that all employees understand the importance of exceptional customer service will go a long way in helping your retail location see success.

Determining whether you are following and meeting these key factors can be difficult. However, with the proper tools and analytics, you can easily determine how many customers are entering your store, and their buying habits. 

Conversion Rate for Retailers

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Conversion rate for retailers is simply a means to calculate the percentage of how many people bought something from your store versus how many people came in. For example, if you had a promotional sale on all any products that contained the letter 'B' (we're not judging) and you had 200 people enter your store, but only 30 bought something - you would have a 15% conversion rate.

How did you get that? 

The formula for calculating your conversion rate is the total amount of people who entered your store divided by the amount of people who bought something. Does that seem overly simple? It really is, but you run in to some dilemmas when it comes to practicality. Do families count individually or as a group - especially when only one person bought wiper blades. What if one of your associates took a sale, but you were distracted and didn't note it and your numbers are skewed? This is generally where a people counting system comes in to play, but more on that in a moment.

Okay, so my conversion rate is 15%. Now what? 

Conversion rates will vary on a number of factors. It's important to consider that when plotting your conversion rates. Knowing your conversion rates should be for a general, overall understanding of your store's interaction with customers. 

High conversion rates - 90% - would be amazing, but generally speaking, that only happen at gas stations or convenience stores, where almost everyone buys something and it's usually individuals paying for their items. A specialty department store will generally expect around 30% - 40%. 

You will want to plot your conversion rates out over an extended period of time. The benefit for recording this information is that you can start to recognize patterns of what people are interested in and when sales seem to be the highest. Some markets have days where they are busier - for example, movie theaters tend to have many more patrons on Friday or Saturday night, and especially on a Friday where most people have received paychecks. You can use this information to decide what promotions you may want to offer at these particular times and when the business wanes and you should focus on other tasks. 

 

 

How Are Shoppers Affected by High Store Traffic?

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When you're tracking the number of customers who are entering your store, there are a few questions that you're asking yourself. First, at what times is the store most crowded? When do you need to schedule more employees? How are your promotions working?

...one thing you may forget to consider, however, is how shoppers are affected by high store traffic.

 

People are influenced by crowd mentality

High store traffic can encourage people to check out your business. The busier your store is, the more people are influenced by the crowd mentality. If lots of people are checking it out, then others will want to follow.

High store traffic may decrease customer service. You'll need to make sure that you have an adequate number of employees on hand to help your customers get everything they need. Track your busiest hours, and have extra employees on hand during those hours to handle rush traffic.

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High store traffic may increase the amount of time customers spend in the store. Their response to this may vary by the individual and based on what they're planning to purchase. Does your business offer services that encourage people to browse, rather than grabbing an item and hurrying to the checkout line? People might browse longer while they wait for lines to go down. On the other hand, convenience-style stores that people want to get in and out of as quickly as possible will lose business if potential customers see that it's too crowded.

High store traffic may increase customer frustration. There will be more people in the aisles, so you'll need to arrange your displays to allow for plenty of room to get around. 

You want to bring people into your business consistently--both one-time customers and those who come back again and again. By knowing what happens when there's high customer traffic in your store, you can provide the best possible customer service and ensure that those people keep coming back.

Efficient Staff Planning for Retailers

As a business owner, your primary goal is to increase profit. This requires a careful balance of resources, expenditures, pricing, and numerous other factors intended to ensure that you earn more than you spend. And when you own and operate a retail store, your staff plays a major role in your bottom line. Payroll can take a big chunk out of your budget if you don't manage it wisely. But your retail staff is also a crucial component of the customer experience.

 

 

If you skimp on staffing, customers may not receive the help they need with product questions, they may have to wait in prohibitively long lines to make purchases, and their experience may cause them to walk away without making a purchase. On top of all that, they may refuse to return to your store, or even complain to other consumers, quashing potential future sales in the process.

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Efficient planning

The point is that you need to plan efficient if you want to staff your retail store appropriately. You don't want so many staff members that your payroll puts the kibosh on any profit you earn. But you also want enough staff members on hand to deal with customer traffic. And the place to begin the planning process is with retail analytics. You need to know how many people are entering your store, at what times, how long they're staying, and if they're making purchases thanks to the assistance of your staff, or alternately, if they're leaving empty-handed due to high volume and insufficient staffing.

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Perhaps the best way to accomplish your goal of people counting is to install a people counting camera in your store. This piece of equipment is designed to monitor and record anyone and everyone who comes in and out of your store, giving you the analytical data needed to determine how best to staff your retail location. Business owners use automatic people counting for other reasons, such as store security or to be in compliance with maximum capacity restrictions. But if you want to determine how to most efficiently staff your store, shopper counting is a good way to spot patterns in shopper activity, noting the times and dates that seem to enjoy more or less traffic, as well as the effect of marketing efforts like sales, advertising, and so on.

The end result could not only lead to better staffing choices, allowing you to cut costs whenever possible, but using a video analysis people counter could also help you find ways to increase store traffic and sales. Ultimately, retailers need to efficiently plan to have the staff they need when they need it. It's not an exact science, but using the right hardware and software can give you the data you need to make wise choices where staffing is concerned, saving you money on staffing when possible and potentially earning you more as a result.

Euroshop 2017 - what an experience!

We attended Euroshop 2017 in Düsseldorf as an exhibitor and we had some really interesting and exciting days. 

We would like to thank everyone that visited our stand. Thank you for showing interest in our products and for your participation in all informative discussions.
We were intrigued by all of them. 

Our products are rare and very attractive for the market.
We are ready to join interesting cases and assist to solve different issues.

We are really excited to work together with passionated retailers all over the world. 

Conversion Rate Basics for Retailers

The conversion rate is at the core of a retail store. It represents in large part what drives the business success of the store. It consists of two important metrics.

1. the number of sales, 2. the number of people who come into the store.
The conversion rate (CR) is simply the number of sales (S) per visitor (V) or CR = S/V.

To compute the conversion rate you need a reliable way of counting the number of potential buyer-visitors. You can install an electronic traffic counting system to get this metric. Some stores have someone with a counter clicking people off, however this can be an expensive and error prone method of collecting the metric. Then you have to find a way of eliminating non-buyers like children and staff members from the count.

The conversion rate is really the key metric to assess the attractiveness of a retail business. It is very productive to plot conversion rate over time to measure the effectiveness of alterations in your merchandising, the effects of seasonality, advertising and other treatments. 

If the number of visitors increases but the conversion rate does not, that might suggest a decline in something related to the way your products are merchandised. Factors such as overcrowding at checkout or another factor that weakens the purchase decision might be at fault. It is also possible that conversion rate may increase while customer rates remain constant or decline. This could tell a very specific story about what is going on in your business. 

You can increase the number of sales by reducing prices through sales incentives. You can align your sales staff with peak traffic periods. If you continuously monitor the number of potential buyer-visitors, you can establish peak traffic times and schedule sales staff appropriately. You can make conversion rate a gamification metric. This may encourage staff to build their sales. PCount is a leader in business metrics and analytics, offering hardware and software to help you run your business in a scientific way. For more information, please contact us.