Jul 3, 2023
With host retail coach Wendy Batten
So now that you’ve built your audience and people in your community are aware of you (covered in Episode 162), what do we do next? Today, we are going to talk about how and why we measure foot traffic and customer conversion rates. Both numbers are very simple to figure out, so stay with me even if it sounds elementary at first!
How to Measure Foot Traffic and Conversion Rate
Step 1: Literally to count everyone that comes in the door over a specific period of time! You can do this with a digital counter or with a post-it by the cash wrap with tally marks.
Step 2: Add up the number of sales you had during the timeframe. A POS system can give you this information, as well as your average order value.
Step 3: Divide the number of sales by the number of people who came in the door. That’s all there is to it!
Example: 100 people came in the door, we made 50 sales. Conversion rate = 50%
Now that you have your conversion rate, what’s next? Knowing the foot traffic, conversion rate, and average order value numbers for your business is extremely empowering. Once you know your numbers, you can identify how you want to build your marketing strategy to push the gas and grow your business. This episode is all about empowering you once you have these numbers. There are countless ideas on how to increase foot traffic, average order value, and conversion rates, but we need to market with intention.
If you’ve got a shop on a busy street with foot traffic coming in all day long but your conversion rate is only 3%, you might want to build a strategy around increasing your conversion rate and order value, not necessarily your foot traffic. On the other hand, if you are a destination shop in the middle of the country with a conversion rate of 75% but with only 4 customers per day, you might want to build a strategy around increasing the foot traffic and average order value.
Your Homework: Over the next month, track your foot traffic and conversion rate so you have a benchmark. Knowing these numbers will shed light on where there may be gaps in your marketing strategy and where you might want to push the gas a little bit.
We are deep diving into all of this inside of my Retailer’s Inner Circle this month. As a member, you will have full access to all of my masterclasses, once-a-month group coaching, and a monthly Roundtable discussion with other members of the group. Plus, our Facebook community is vibrant with heart-centered business owners. It’s an incredible group of people who are always sharing ideas and helping out. I’d be honored to have you.
Related podcasts we think you’ll like:
Episode 162: Simple Sales Strategy Series: Where to Start
Episode 145: How to Market Promotional Events in Your Shop
Episode 107: Turn Browsers into Buyers
Episode 103: Increase Sales with Your Silent Salesperson: Signage
Episode 93: How to Wow and Delight Your Customers and Keep Them Coming Back
About your host, Wendy Batten
In case we haven’t met yet, I’m Wendy, a small business coach and founder of the Retailer’s Inner Circle, where I help other independent shop owners learn how to gain the right business skillsets to see more profits, paychecks, and joy as they navigate running their retail business.
Through online classes, business coaching programs, speaking, and a top-ranked podcast, I’ve helped hundreds of retailers around the globe reclaim their dream and see the success they want from their beautiful shops. My signature private coaching community, The Retailer’s Inner Circle, has helped retailers around the world build their retail business skill sets and confidence.
I am proud to have been featured in several major publications, including my own business column in What Women Create magazine. I have been privileged to be a guest on top-ranked podcasts and sought-after as a guest speaker and teacher for several brands, associations, and communities that are passionate about the success of independent retailers.
When I’m not coaching, you will find me either DIYing and renovating my very imperfect old crooked cottage by the sea in the UNESCO World Heritage town of Lunenburg, NS, or blogging about our travel and RVing adventures and the weird fun things we get up to in our coastal village. I’d love to invite you to check out one of my free resources for real retailers at https://wendybatten.com/free-resources/
For more support from Wendy
All of Wendy’s programs and services for shop owners can be found HERE.
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