Improving Conversion-- One Point at a Time

Conversion rate - a store's number of retail transactions during a certain time period compared to its traffic - is by far the most accurate indicator of a company's performance. If you know how many customers walked through your door today (your opportunity) and the number of transactions you processed (your results), you will: 

• Know how successful you are at converting those opportunities into actual sales; and
• Establish a benchmark for future improvement

First You Need Traffic!

It may seem obvious, but to determine your conversion rate, you need to count your traffic!  Many retailers claim they know their conversion rate, but the claim is based on transactions and sales.  If our long history has proven anything, it is that transactions are not a substitute for traffic. 

Start Store-by-Store  

Veteran retailers use their conversion rate to test new ideas and establish best practices across all of their stores.  But, at the outset, each store's conversion rate should be managed on its own.  No matter what their starting point, if each store can improve their conversion rate by one point over a 3 month period, the bottom line impact will be extraordinary.