The 4 Principles to Improve Your Retail Foot Traffic Conversion Rate

When looking at retail foot traffic conversion rate, around 7 out of 10 people who visit a furniture or appliance store leave without buying (according to our Q4 2023 Home Furnishing  Benchmark Report).

If you can make it 6 out of 10, you get a 50% increase in your conversion rate! Not bad, eh?

The average retail foot traffic conversion rate is about 27%—with a range of 16 to 40%.

I don’t know about you, but these numbers are downright unsettling especially if your conversion rate is at the lower end of our research.

Think about it… Going from the bottom 16% to the top 38% would be more than a 100% increase to your retail foot traffic conversion rate.

What’s the difference between the low and high number, you ask?

Well, there are many factors to consider, none more important than belief… belief that something is possible—belief not just by you but by your people as well.

The four basic ingredients to improve your retail foot traffic conversion rate

  1. What gets measured gets improved
    This one is a no brainier. The problem usually is not whether to measure something, but what and how to measure it. This is why we dig into the data that leads to better results, so you don’t have to.

  2. 80% of the effect comes from 20% of the cause
    You may know this as the Pareto principle (also know as the 80/20 Rule, the Law of a Vital Few, or the Principle of Factor Sparsity). The approach here is to analyze the top 20% of data samples with the understanding that herein lies best practices and the insights that lead to opportunities for greater improvement.

  3. 150 is the number of individuals with whom any one person can maintain stable relationships
    Known as Dunbar’s number, it deals with how many relationships an individual can effectively maintain. Bottom line is, there’s a maximum number of opportunities your salespeople can effectively manage, and if they are over that limit you are losing sales.

  4. The annual price of a product or service should yield a 10x return to the customer
    Knowing how to price your product or service is always a challenge. This is why we created an ROI calculator that is designed to deliver a 10x ROI for every 1% increase you make to your retail store foot traffic conversion rate.

Increase your conversion rate today

Looking for help increasing your retail foot traffic conversion rate? Trakwell.ai is a retail analytic software that uses AI vision to help you and your team see your foot traffic, improve your teamwork, and automate your data.

Get started today.

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