Lack of service due to incorrect staffing of the store to meet the number of customers is one of the main reasons of loss sales.
A store who got a traffic of 3,000 visitors in a week, but sells only 15% to them, it’s just 450 transactions. This situation means that 2,550 people leaved the store without buying. If we want to enhance the sales of 5%, it’s necessary to sell to 23 of the 2,550 visitors who didn’t buy. Perhaps the mailman or delivery man comes a few times. Or perhaps some leave for lack of the right merchandise; perhaps there are family groups in these numbers. But in service-sensitive stores there are most likely at least 23 of these people who simply didn’t find the service or the product they wanted to make a purchase.
What is the real potential of a store?
Service-sensitive stores selling 30% or less of their traffic can almost always increase sales by 5% or more … and maybe a lot more … even on declining traffic. The key to accomplishing this is to realize that with the traffic data, 70% of store traffic leaves without making a purchase … and that some of this traffic would have made a purchase given the right level of service, particularly during key selling periods. Another way to perform on your traffic is to know the traffic patterns of your visitors via a traffic system management.
In today’s economy, the actual traffic already in the store remains by far the quickest, most cost-effective route to significant and sustained sales increases.
| Common Conversion Rates | |
|---|---|
| Enclosed mall specialty stores: | 5%-15% |
| Strip mall specialty stores: | 15%-25% |
| Stand-alone, main street: | 25%-35% |
| Big box: | 35%-45% |
