Customer traffic Vs.

Customer conversion
INCREASE CONVERSIONS - ENHANCE SALES

Contents
1. Customer traffic 2. Customer conversion rate 3. Bottlenecks to conversion 4. Improving conversion rates 5. Conversion strategies - Collateral or link sell - Selling accessory - Up-selling - Cross selling 6. Incremental sales performance equations 7. Best practice – moving on 5 P’s to 6 P’s, futuristic approach

Copyright 2013 JDA Software Group, Inc. - CONFIDENTIAL

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the number of people who made a purchase Copyright 2013 JDA Software Group.Customer traffic Customer traffic ≠ Transaction counts Customer traffic.the total number of people came to the store (buyers and non-buyers) Transaction count.CONFIDENTIAL 3 . . Inc.

Conversion rate. conversion rate = 40% (i.most critical retail performance metrics Ex.A store logged 500 traffic count and 200 sales transactions. 200/500*100) .e.

availability and price• Buying group size• Competitive environmentCopyright 2013 JDA Software Group. . Inc.CONFIDENTIAL 5 .Bottlenecks to conversion • Sales staff effectiveness • Staff levels • Visual Merchandising • POS availability• Cashiers effectiveness• Promotional strategy• Product mix.

compensation plan .unplanned staff breaks seriously drags down conversion rates Copyright 2013 JDA Software Group. .inexperienced sales staff & cashiers ineffectiveness . 2. Understand why people don’t buy .Pay particular attention to lunchtime “Dynamic roster” .CONFIDENTIAL 6 .out-of-stocks . professionalism.long queue at the tills.Improving conversion rates 1.Matching staff schedules Vs.impact-less visual merchandising and the list goes on……. Inc. traffic volume timing in store . Align staff to traffic not to transactions . product knowledge.appearance & grooming. fitting rooms .

trick is to move conversion rate above store’s performance Copyright 2013 JDA Software Group.plug the holes .low traffic high conversion rate . Inc.take control of peak trading hours by day and by week 4. Look for conversion leaks .define goals & targets for each dept.high traffic low conversion rate .every store is unique .CONFIDENTIAL 7 .Improving conversion rates 3. . . .1 store profitable at 15% conversion rate another may be underperforming at 30% conversion rate . Set conversion targets by Dept.set conversion targets uniquely .

measure how well the whole store is doing at helping people buy .best way to improve conversion is to ensure all staff understands what conversion is and that each of them helps influence it .don’t think of conversion as merely a business metric . Inc.Improving conversion rates 5. Make conversion a team sport . .get staff excited about moving the conversion needle and it will significantly improve results Copyright 2013 JDA Software Group.CONFIDENTIAL 8 .discuss targets and share results .collective team effort: Sales staff  Cashiers  Vendor staff  Visual Merchandisers  Other in-store staff .

More buying customers .increase conversion by breaking down the barriers to making a purchase 2.Customer conversion strategies 1. Inc.CONFIDENTIAL 9 .influence those who accompany your primary shoppers 4. Secondary shoppers .influence customers to invite their circle of friends to your brand Copyright 2013 JDA Software Group. Sales from other business units . .influence customers to visit and buy from your other departments or brands during their visit 3.customer visit a store and many even consider buying . Circle of influence .

footfall in 1 store is 300 customers/month and if a salesman can induce 25% of these customers to buy 1 more additional product. Inc.Ex.Customer conversion strategies Collateral or Link Sell Focus on selling co-ordinates .having reasonable width in product line empowers to sell co-ordinates inducing further buying . .ensure staff and customer is made aware of the range and brands in the store .CONFIDENTIAL 10 . this generates an extra sale of 75 pieces Copyright 2013 JDA Software Group.

handkerchiefs. . ties.g.e. will not resist. Copyright 2013 JDA Software Group. etc.CONFIDENTIAL the 11 . caps.accessories are presently the least focused-on by many of Retailers/Stores. flip-flops.have clear focus and target on accessories e.if sales staff do suggest any accessories to customer . belts.it is a ‘Win . caps.Win’ situation for both sides.i. undergarments etc. handkerchiefs. .Customer conversion strategies Sell at least 1 accessory per bill Accessories . the customer many a time. . . socks. belts. Inc.

Inc.most customers will graduate to aspirational products if they believe that the decision was entirely theirs Copyright 2013 JDA Software Group.B elements to customer in pleasing.A.CONFIDENTIAL 12 .a salesman should be able to highlight all the F. .the trick of the trade is to create such zone for the customer whereby they feel comfortable with the presence of products at both ends of the price spectrum .Customer conversion strategies Up Selling Up selling: Sell higher-price-point products . stock aspirational products are at higher-price-point that .customers are price-sensitive. honest and convincing manner .

CONFIDENTIAL 13 .in case of “out of stock” check availability with stores and direct the customer.suggest co ordinates from other brands to suit customer needs Copyright 2013 JDA Software Group. to suit their needs .Customer conversion strategies Cross Selling Cross Selling . Inc. . if feasible initiate store to store transfer .guiding & helping customers on availability of other brands & merchandises with in the branch and other branches as well.

CONFIDENTIAL 100 14 .000 X 50% X Copyright 2013 JDA Software Group.Incremental sales performance equation The following equation identifies the three key variable that generates sales result: Retailers should know how and which “lever” to press In order to generate 50. . Inc.000 people who visited the store and has an average sales value 100 50.000 sales store has to convert 50% of 1.000 = 1.

500 (through advert or promo) and maintain 50% conversion rate and 100 average sales then …. Inc. . Increase traffic volume Drive the traffic volume up by 50% to 1..CONFIDENTIAL 15 . there are number of different ways this can be achieved: 1.Incremental sales performance equation If the retailer wants to drive sales up to 75.000.000 = 1. 75.500 X 50% X 100 Copyright 2013 JDA Software Group.

staff availability.CONFIDENTIAL 16 .Incremental sales performance equation 2.000 = 1. approach and clear strategies) even if traffic and average sales remains constant…. Increase conversion rate Drive the conversion rate up to 75% (through sales training.. . Inc. 75.000 X 75% X 100 Copyright 2013 JDA Software Group.

75.000 X 50% X 150 Copyright 2013 JDA Software Group. Inc. link sell) even if traffic and conversion remains constant…..CONFIDENTIAL 17 .000 = 1.Incremental sales performance equation 3. Increase average sales Increase the average sales from 100 to 150 (through offering new higher-end product line. . increase add-on sales.

000 = 1.CONFIDENTIAL 18 . Inc.e.Incremental sales performance equation 4. from 1. from 50% to 60% and drive the 500 incremental traffic (. .e.500 X 60% X 100 Copyright 2013 JDA Software Group.i.i.000 to 500) holding the average sales at 100 then…… 90. More than one variable: If the retailer can positively impact more than one variable the result is a “multiple effect” – dramatic impact on sales Increase the conversion rate an additional 10% (.

Best practices Customer count & conversion The 5 P’s of Retail business: -People: Do you have right people? -Place: Right store locations and products placement? -Product: Do you have the right products to sell? -Price: Is the product rightly (competition) priced? -Promotion: Do you have right promotion strategy? Copyright 2013 JDA Software Group. Inc.CONFIDENTIAL 19 . .

2 billion .presently runs 37 stores (29 Dept.on-going sales growth is highly dependent on combined inshop and on-line experience by keeping customers engaged Copyright 2013 JDA Software Group. Inc.Best practices Futuristic approach. . store.K market in omni-channel retail .opened 1st store on London’s Oxford Street in 1864 . 8 smaller format ) .CONFIDENTIAL 20 .John Lewis is U.John Lewis The 6th P is Pixel (Technology) Company’s background .L’s strategy: lead U.annual turnover US $ 5.K one of the largest retailer .J.

Best practices Futuristic approach. with 67 percent giving it a positive assessment Copyright 2013 JDA Software Group. create cross-channel shopping behaviors and demonstrate John Lewis' passion for innovation . to differentiate the instore experience. Inc.L tried and installed CISCO StyleMe .Results • 1. Cisco StyleMe.CONFIDENTIAL Cisco S tyleMe Virtual Fashion Mirror.Challenges Make the online and in-shop environments synonymous to capture more cross-channel shoppers . .an average of more than 40 customers daily • Customers of all ages enjoyed the experience.Solutions Pilot-test a virtual fashion mirror.402 customers used StyleMe .John Lewis .flv 21 June 2012 J.

Thank You for your time! Copyright 2013 JDA Software Group. .CONFIDENTIAL 22 . Inc.

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