Using some form of foot traffic metrics in your small business’s retail store is important for your companys bottom line. Ultimately, the information you glean from keeping track of the people that enter your store is vital to understanding the potential sales you could and should be making, and often provides insight into some reasons that you are losing sales.
Understanding Foot Traffic
The presence of individuals within your brick-and-mortar store is the most basic definition of foot traffic. Startups and new small businesses tend to neglect the significance of foot traffic and keeping adequate records of it. A higher amount of foot traffic within your store results in an increased likelihood of future visits and more more opportunities to engage with potential customers and more chances to convert browsing shoppers into paying customers.
How to Increase Foot Traffic
Even if your store is located in an area with high foot traffic that generally benefits from its basic location, there are still several ways to increase foot traffic in your store. Increasing your foot traffic by just a few people each day can lead to higher sales numbers for your business. Consider holding a grand opening to introduce your company to the public, especially if your company is brand new or if it has just moved into a new space. Other options to drum up foot traffic include sidewalk demonstrations of products, raffles and giveaways, and getting involved in charity events or fundraisers.
Measuring Foot Traffic
The best method for measuring foot traffic depends on your business, the number and type of customers you commonly serve, and your budgetary limitations. For your small business, installing high-tech metrics or other analytics may be a stretch. If your company’s budget is small, consider using a more hands-on and old-school approach. Make sure that an employee is at or near the door of your store at all times. This staff member can use this opportunity to engage with everyone that walks by, and how many people enter your store, keeping a running count at the same time. If you have the budget for a more technological approach, consider installing a surveillance camera that focuses on the entrance of your store and on key areas within the store. This allows your employees to move about freely, interact with customers at random, and avoid having to keep a mental or written record of bodies coming in the door. Review these tapes every few days to get a general idea of foot traffic. This also allows you to identify repeat customers, what products they gravitate to, their usual pattern of travel around the store, and may even help you spot prime moments or areas to engage with them. For a more integrated approach, consider using a servicee that lets your company monitor and track in-store analytics through sensors, mobile applications, and through information that can be gathered if customers use a local Wi-Fi network.
References & Resources
Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.