How does the Time With Customers correlate with other key performance metrics in your business like Sales Conversion and Average Ticket?
This week we are taking a look at why averages lie to us. But, if we look at averages through the right lens, they can be a powerful tool to help us grow.
WHAT’S IN THIS WEEKS EDITION, YOU ASK?
- Google announces product discovery tools for retail.
- See how the new mask mandate will affect brick-and-mortar retailers.
- Turn your foot traffic into more sales with a 90-day free trial of Doorcounts 3.0.
And, here’s what’s in next week’s edition: January Year-Over-Year review and more.
FOOT TRAFFIC INDEX
Here’s a look at last week’s foot traffic compared to the same time last year.
DC FEATURE OF THE WEEK
This is where each week we highlight a feature within Doorcounts. This week’s feature is:
Sales vs Opportunity
Seeing your conversion rate can be a great way to see how your salespeople or store as a whole is performing. Unfortunately, you don’t get to see the whole picture when looking at sales conversion alone.
Since sales conversion is simply sales divided by opportunities, The Sales vs Opportunity tab allows you to see the breakdown of how the sales conversion played out for each store or salesperson.
FOOT TRAFFIC TRENDS
Industry insights so you can convert your foot traffic into more sales.
This week we take a deep dive into the relationship between Time With Customers, Conversion Rate, and Average Ticket.
Time with customers vs conversion rate (Furniture 2020)
We’ve looked at conversion rate many times throughout this year, but never before have we seen it directly compared to time with customers.
In 2020, time with customers had a positive correlation to conversion rate. As salespeople spent more time with customers, they converted more sales. Similarly, as salespeople spent less time with customers, fewer sales were converted.
DUH… Probably didn’t need a chart to tell us that.
Time with customers vs average ticket (Furniture 2020)
Although time with customers and average ticket have very similar trends, they are not exactly correlated.
As time with customers took a sky fall during lockdowns in April, the average ticket continued to slowly rise. The lesson here is success is about our ability to adapt to what’s happening in the marketplace.
Time with customers vs conversion rate (mattress 2020)
Similar to the furniture industry, time with customers and sales conversion showed signs of correlation in 2020.
They say that a rising tide lifts all boats and a low tide has the opposite effect.
Interestingly enough, at times the two metrics have a strong correlation, while other times correlation was low.
From January to June the two metrics follow a very similar trend. As soon as July came around, the relationship between time with customers and sales conversion was not necessarily meaningful–but still fun to observe.
Time with customers vs average ticket (mattress 2020)
In contrast to furniture, the correlation between time with customers and average ticket is not nearly as strong in the mattress industry.
What we found interesting here, was when time with customers completely dropped in April, average ticket only dropped by 12.5%. It’s clear that the power of face-to-face selling is still alive and well.